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Written by rosalind renshaw

Unrealistic price expectations on the part of sellers is hampering transaction levels, the RICS has reported.

Its latest survey, covering last month, says that the average number of completed sales per surveyor in the three months to December was 15.2, slightly down on November’s figure.

RICS members have become less hopeful of sales for the coming three months.

The RICS also reports that new instructions edged up for the third consecutive month during December, but that prices across much of the country continued to fall.

Regionally, London was the only area where prices increased, while the biggest drops were in the West Midlands, and Yorkshire and Humberside.

RICS agents continue to report that a lack of mortgage finance is hindering many, with the cash-rich best placed to take advantage of the current market.
 
Ian Perry, RICS housing spokesperson, commented: “While it’s encouraging that sales activity held up relatively well towards the end of the year, continuing problems with the economy and the ongoing instability in the eurozone seem to be weighing heavily on the UK housing market, and expectations for the coming months are fairly subdued.
 
“With sales expectations remaining flat, it is important that vendors are realistic in their pricing if they wish the sale to go through in good time.”

Comments

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    Ahhh... Mr/Mrs/Ms/Prefers-not-to-disclose F-S reappears like a phoenix from the flames!

    Okay - you say it is essential that "price expectations start to come into line with reality."

    Please quantify, as per my queries below. Never mind national averages - I'd like to meet you in your home territory on this one - take say a three bedroom semi in your patch. Nowt special - just yer average semi in yer average street.

    What is the 'going rate' with regard to asking prices of the above? (across the board figures including your competitors so we can see where you are coming from...)

    How much would a property fitting the above criteria SELL for, in 2007?

    How much would one sell for TODAY?

    In order to achieve the above, how much would the property need to be marketed at?

    I look forward to your response.

    • 13 January 2012 11:30 AM
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    This is what I've been saying for many months. We won't see a proper market recovery - in sales volumes and in people being able to move home when they need to and get on with their lives - until price expectations start to come into line with reality.

    'I see sensible EAs are now letting the the over-value monkeys take on the impossible sell for 3 months and taking business back just in time for the money shot of a "reduced" price sale when the vendor gets fed up with the over-value money firm.'

    My strategy over the last year in a nutshell - and I'm doing just fine, thanks.

    • 12 January 2012 16:10 PM
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    Chip Douglas: "Well at least RICS appreciate that some sales at any price is better than no sales. Wonder how long it'll take dozy EA's to realise?"

    Do't be such a prat. RICS members who practice as residential Estate Agents are duty bound - like ALL Agents - by the Estate Agents Act 1979.

    Have a read - and see for yourself what an Agent's responsibility is to their vendor client...

    • 12 January 2012 15:54 PM
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    Well at least RICS appreciate that some sales at any price is better than no sales. Wonder how long it'll take dozy EA's to realise?.....................They won't and will go the same way as the dodo.

    • 12 January 2012 14:53 PM
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    Well at least RICS appreciate that some sales at any price is better than no sales. Wonder how long it'll take dozy EA's to realise?

    • 12 January 2012 14:35 PM
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    EAs over-valuing to get an instruction. I see sensible EAs are now letting the the over-value monkeys take on the impossible sell for 3 months and taking business back just in time for the money shot of a "reduced" price sale when the vendor gets fed up with the over-value money firm.

    Sound familiar; you know who you are.

    Race to the bottom in 2012.

    • 11 January 2012 13:56 PM
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    @PoTW actually I only had one sale fall through due to a downvaluation last year, it was also the only downvaluation I had all year and was probably deserved (don't tell the owner I said that though...)

    I admit though that I am based in Surrey so might be a bit different from further north as there does seem to be quite a bit of regionalisation to the stats.

    In most cases, because of the complete lack of sales and prices generally holding up in my area I haven't even seen the phrase "considered to be at the top of its price range" either when work is necessary.

    But maybe I'm just lucky.

    • 11 January 2012 09:19 AM
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    Pesky surveyors. Once they start talking about unrealistic pricing and getting worried about being sued for over valuing - then they 'under' value and sales fall through ... and then there are less sales and less comparables ... better go down a bit more ... don't want to be accused of 'over' valuing.

    Shame they can't just leave it to the buyers and sellers to sort out eh? Let them borrow whatever they want and the market will go up to infinity.

    • 11 January 2012 07:21 AM
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