Homes selling for 9% less than asking price

For the first time in 12 months both the selling price and asking price for property in Scotland has increased, a new report has stated.

There has been a 9% gap between asking and selling prices. Picture: Ian Georgeson

On average homes were sold for 9% less (£14,590) than they were advertised for with the average price for a property recorded as £153,102, according to the latest quarterly s1homes house price report.

This marks a small decrease from 10% in the first quarter of 2013 due to Scotland’s average selling price rising by 3% and the average asking price increasing by just 2%.

The difference between the seller’s expectations and the figure they sell for is branded the “reality gap” by the property website.

The biggest reality gap is for owners of detached properties which are selling, on average, 18% below their asking price.

Regionally, Stirling and Clackmannanshire saw the largest increase in the reality gap with properties there selling for 23% below asking prices.

Investment

Flats and terraced houses are fairing better with the average selling prices for both remaining higher than the asking prices.

Mark Smith, managing director of s1homes said: “I think what this quarter’s report shows is that there are distinct signs there’s a bit more confidence in the overall market which is leading to prices starting to creep back up, particularly at the lower end of the market.

“That’s not necessarily good news for the first time buyer but will encourage those who see property primarily as an investment.

“What’s also apparent is that owners of detached properties are firmly sticking to their guns despite no evidence of buyers being willing to meet their expectations.”

The quarterly report is generated by comparing the asking prices of the 30,000 homes for sale on the s1homes site with the actual prices achieved as recorded by the official government agency Registers of Scotland.