Prime buyers remain ‘unrealistic’ about price cuts - claim

Buyer expectations of price discounts are too high, a prime agent claims.

Jo Eccles, founder and managing director of prime London buying agent Eccord, has suggested that while discounts exist, many buyers are expecting too much.

She said:  “We’re seeing a real disconnect between the expectations of new buyers coming into the prime central London market, particularly those searching in the £2m - £5m price range, and the reality that faces them once they start actively house hunting. Transaction volumes are down significantly compared to twelve months ago, but in my view this is largely price related, rather than demand related. 

“Sellers have started to price properties more realistically and we’ve even seen some instances of estate agents refusing to take on a sales instruction which they believe is priced unrealistically high. 

“Despite this, some buyers are entering the market thinking they hold all the cards and expecting to automatically achieve a 20% discount on last year’s prices, but are finding themselves disappointed - and in the process of submitting unrealistic offers they are losing credibility with agents.”

Eccles said it is possible to achieve discounts, but a strategic and considered approach is required.She said: “On a recent property tour of 13 family houses priced between £15m - £18m, just one was being sold by a needs-driven owner occupier. The remaining were all houses which are surplus to requirements, with little impetus to sell now. The key for buyers is to maintain personal credibility within the area they’re searching and resist the temptation to go in aggressively with a silly offer that will be immediately rebuffed.”

Eccles added that reduced confidence in the market has also created a shift in mindset, with buyers much less willing to take a view on matters that arise during the conveyancing process. 

She said: “Our network of experts from heritage and planning teams to architects and interior designers, tree and acoustic specialists, are proving indispensable for pre-exchange advice on points that buyers would normally view as non-critical.

“We’re also navigating buyers through negotiations on long and complex fixtures and fittings lists and other purchase conditions such as boundaries, potential construction costs and ongoing maintenance expenditure. This is in contrast to normal market conditions where we see a higher degree of urgency, with both sides usually more inclined to show greater flexibility or take a view to maintain momentum.”