Nationally 21% paid exactly the asking price and 7% paid over the asking price but generally when it comes to closing the deal buyers are managing to negotiate under the asking price.
Overall some 72% paid less than the price asked even although new seller asking prices rose by nearly 8% and even in the highly competitive London market 53% of buyers still paid under the asking price, according to research from Rightmove.
Greater London at 53%, the South East at 70% and the North East at 71% are the only regions lower than the national average, while Wales has the highest number of people who paid under the asking price at 82%.
‘These results emphasise that talk of a national housing bubble is unfounded and that although prices are rising, most people continue to make offers in line with what they can afford or what they perceive to be the right value,’ said Miles Shipside, Rightmove director and housing market analyst.
‘Even in London, over half of buyers found a property and paid under the asking price. While there have been reports of bidding wars and oversubscribed open houses in some pockets of London where stock shortages are an issue, the findings as a whole show that there are still areas where people can negotiate on price,’ he pointed out.
He said that it is important to remember that an estate agent has a professional duty to the seller to get them the best price, and that all local market conditions are different. ‘For example, if you're looking in a particularly in-demand area you might have to be both willing and able to pay a premium,’ he added.
With the introduction of new more stringent mortgage rules in April, he believes it likely that people will continue to offer less than the asking price, especially if the new rules mean they are offered a lower mortgage than they were expecting.
Buyers can be unsure of how much over or under the asking price they should offer, especially when they fall in love with a property so Rightmove advises buyers to make sure they look at local market conditions. ‘Find out what the average asking and sold prices are of similar properties on Rightmove so you know if the price being asked for is fair in the current market,’ said Shipside.
He also suggests that they should think about what they could compromise on. ‘You might find a property that doesn't have all of the features on your original wish list but you know you could be happy living there, so make two lists: things that are essential and things that would be nice to have,’ Shipside added.
Buyers are also advised to be sensible about how much they can afford. ‘It can be easy to get carried away when you see a home you love, but putting in offers that you can't afford will only lead to financial problems in the future. Think carefully before putting in a higher offer, but if you know you can make the repayments and see yourself living in the property, a couple of extra thousand may mean you can close the deal,’ Shipside explained.
He said buyers should not be disheartened if their first offer isn't accepted. ‘While the majority of people are managing to pay under asking price there are still competitive markets out there in the more sought after locations, meaning you may need to pay over the asking price in these areas,’ said Shipside.
‘Look a little further out. It won't suit everyone but if you are willing to commute a little longer into cities from your home you will find you can get a lot more for your money. This ripple effect is happening across London with the outer boroughs seeing more demand from buyers,’ he added.
