Asking and selling prices 'closer'

Nov 12 2012

The gap between the asking price and selling price of property is closing, according to a report.

An increase in the average selling price of flats and terraced houses has brought down the overall "reality gap", the difference between asking and selling prices.

The average selling price of flats increased to £122,915 in the three months to September, 8% above the average asking price of £113,853.

The average selling price of terraced houses also increased to £131,846, above the average asking price of £116,678, according to the s1homes report.

Detached houses are selling for 18% less than their asking price on average, causing an overall reality gap.

The report on Scottish house prices shows that, overall, the average asking price across Scotland fell by almost 1% to £167,619 in the third quarter of the year, while the average selling price of properties increased by 3.8% to £159,310 over the same period.

Meanwhile, the volume of sales fell during the quarter but the average house is now selling for around 5% less than the asking price, compared with almost 10% less in the previous quarter.

Mark Smith, managing director of s1homes, said: "The report shows that house sellers of most property types are being more realistic and therefore achieving or exceeding their asking prices but detached properties are still being priced at unrealistic levels, leading to a significant reality gap. This is affecting the picture of the market as a whole."

The biggest gap between asking and selling prices is in East Renfrewshire where properties sell on average for £30,000 less than the average asking price of £248,058.

In contrast, houses in Edinburgh sell for around £18,000 more than the £210,929 average asking price.