132.7% More Thanet Properties on the Market in Last 20 Months:
How Thanet Home Sellers are Navigating the Storm
In recent months, in certain parts of the country, the British property market has exhibited signs of cooling.
As a result, homeowners selling their homes face increasing competition from more homes on the market.
The increase in mortgage rates has played a pivotal role in this cooling, taking a toll on potential buyers' incomes, thereby lowering affordability and demand.
The consequence? Some previously buoyant regions, especially in the South, have experienced price corrections.
As the market faces this colder front, local factors like the availability of reputed schools, amenities, and public services remain paramount for those looking to buy.
The Overpricing Trap
In a tougher property market, a common strategy by some agents is to suggest you put your property on the market at an inflated price, only to encourage the homeowner to drop it months later.
Large estate agencies have the resources to allow many listed homes to remain unsold, whereas smaller agencies rely heavily on consistent sales. Hence, the latter often propose more realistic prices to ensure they get the house sold.
I have encountered countless Thanet homeowners being advised to list their property at an elevated price despite their reservations. Over time, with sparse viewings and no genuine offers, they drop the asking price. The original overestimation meant a prolonged waiting period and they lost homes they wanted to buy. People like to think they are level-headed and wise to such tricks.
So why does this happen? Remember, greed can take over when an estate agent says they can get you an extra £30k than another agent. That is why estate agents do it.
Of course, it's tempting to price your Thanet home ambitiously. While testing the waters with a slightly higher price tag is understandable (we do it often at our agency), refusing to adjust the asking price after the first few weeks if there is no substantial interest could be a costly mistake.
An overpriced home can stagnate on the market, leading potential buyers to assume there's something wrong with it. The longer it sits unsold, the more it becomes stigmatised.
A lack of early interest regarding viewings should be a clear signal; if there are no serious inquiries and/or offers within the first few weeks, it's imperative to reconsider the asking price. By being responsive and proactive, Thanet homeowners can avoid the pitfalls of a stale listing and increase their chances of a successful sale and move.
So why is it so much of an issue now?
132.7% More Thanet Homes are on the Market Today than 20 Months Ago
2021 was an exceptional year for people moving home. There were more buyers than sellers, meaning the number of properties on the market in Thanet was reduced. Looking at the numbers…
The number of properties on the market on 1st January 2021 in the Thanet area (CT7 to CT12) was 1,691, but by 31st December 2021, that had reduced to 1,130.
By the 31st December 2022, that had increased to 2,004 homes for sale, a rise of 77.3% in only 12 months.
It has continued to rise and today stands at 2,629 properties for sale, a rise of 132.7% in 20 months.
With the average number of sales per month in the Thanet area 20.3% lower per month in 2023 than in 2021, with greater supply (132.7% more properties for sale) and that slightly lower demand (i.e., sales down 20.3%) … getting your asking price right is vital.
Determining the Right Price
Buyers and sellers can arm themselves with information about the Thanet property market. Many online platforms provide data about sold property prices in specific areas, giving Thanet homeowners a benchmark. Additionally, the time properties spend on the market can provide insights into an agent's efficiency (again the portals like Rightmove and Zoopla show you this).
When selling, obtaining valuations from multiple agents and critically analysing them is vital. It's crucial to ensure that agents provide evidence to back their valuations, enabling homeowners to make informed decisions.
Rethinking the Selling Strategy
The Thanet property market tends to shift collectively, much like boats carried by the same tide. Things are okay if you're not faced with financial losses and can manage an upgrade. Many assume continuous gains are certain when selling your home, but the real profit materialises only when you part with your final property. You may not even realise this profit directly, but it could be used later for elderly care expenses or as a legacy for your family.
Once a property is listed, attention to its online journey is essential. The initial four weeks provide insights into whether your Thanet property is priced correctly, gauged by the number of web views on the portals, actual viewings of your property and offers received.
Yet deciding to reduce the listing price is more than just about attracting buyers; personal timelines and goals play a significant role. For instance, one might ponder: Is there a deadline by when the property must be sold? Can waiting a few months make a difference? These considerations help in making informed decisions on price adjustments.
However, it's beneficial to consider independent or boutique agents, like our agency in Thanet, in a challenging market. They often tend to offer a more authentic experience and realistic valuations.
Finally, one strategy employed by some savvy Thanet home sellers is to list their property at a slightly lower price to spark more interest and drive up offers.
Switching Agents or Going Online?
With a slow property market, one’s patience can wear thin. If you are considering switching agents, sellers should evaluate the current agent's efforts and communication frequency. Another option is multi-agency agreements. However, this approach has recently declined due to associated higher fees.
With their fixed fees and remote operations, online agencies seem like an attractive option. Yet, their one-size-fits-all model can fail to capture the nuances of individual properties, making them less effective in slower property markets
Renting as an Alternative
Renting out unsold properties is gaining traction where rent is rising. However, prospective landlords should tread carefully, considering growing mortgage interests, tax restrictions, and tenant-related challenges. Again, if that is a potential option for you, do give our agency a call.
Final Thoughts
The current Thanet property market is complex. The recent freeze by the Bank of England base rates is a welcome pause. It won’t turn the Thanet property market into a frenzy like the stamp duty holiday did in mid-2020, yet it is a welcome respite
With the right strategies and awareness, Thanet home sellers can effectively navigate these waters, ensuring their property finds the right buyer at the right price.
If you are a Thanet property owner, and this article has sparked any questions, do not hesitate to give the me, Damien Cooke or one of my team members a call.
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About Cooke & Co
Cooke & Co, a liked and respected estate agency trading since 1992, is conveniently situated in the picturesque seaside district of Thanet. We proudly operate from our local offices in the region's primary towns, namely Margate, Broadstairs, and Ramsgate. Additionally, our extensive reach encompasses the charming areas of Westbrook, Westgate, Birchington, Monkton, Manston, and Minster. Our presence in these diverse locales enables us to offer an enriched understanding and comprehensive service to the property market in these prime coastal towns and villages.
Contact our offices at the following numbers:
- Margate Office/Area: (01843) 231833
- Ramsgate Office/Area: (01843) 851322
- Broadstairs Office/Area: (01843) 600911
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