How should the actual price of a house be set within the marketplace?

A simple switch between agents primarily acting for the seller to having agents only acting for the buyer is now desperately required. A change from using selling agents to using buyer-advising agents should be seriously considered.

The effect of such a revision of sales and purchase agents would be twofold as far as house prices are concerned.

For the houses which should be attracting lower prices, it would ensure that each purchase price is generated by finding three buyers’ offers which would fix the price level for that house.

At present that is not happening and instead, the relevant price is being guessed (or garnered) by the owner and their selling agent!

In this new scenario lower prices could be the result through obtaining actual ‘market’ evidence of the property’s current price level.

For houses which are larger and of higher value (sometimes much higher value), the marketing would be more comprehensive and as a result, firm bids from three or more purchasers at any one time could possibly result in even higher prices, as more competition from the market could result in the discovery of more than previously discovered interest amongst buyers at the time.

Of course, the converse could and should apply where the level of interest was evidently declining for a specific house type, size, and/or taking account of its state of repair.

Either way, these proposals should result in an increased throughput of house sales because purchasers would be more encouraged to make meaningful offers, based on what they could truly afford.

For the full details of how to address all these issues simultaneously, please follow the link below:

The House Price Solution

How to Improve all local housing markets in England and Wales

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Posted by: Peter Hendry, Housing Valuation Consultant

Author of:– The House Price Solution otherwise known as The Hendry Solution.