Most houses in Scotland are selling for over £14,000 less than their asking price, according to a new report.
The latest quarterly s1homes house price report reveals that average homes in Scotland were sold for 9 per cent (£14,590) less than what they were originally on the market for. This difference, referred to as a ‘reality gap’ by s1homes, is actually shrinking, however, as the difference between sale price and asking price had been above 10 per cent for the previous four quarters.
The average price of a home in Scotland was found to be £153,102in the second quarter of 2013 – a 3 per cent increase on the average price in the first quarter of this year, while the asking price has risen by 2 per cent in the same period.
However, those looking to sell a bungalow in Scotland should expect to take a significant hit on their asking price. The report shows that the reality gap between sales and asking price for a bungalow is 18 per cent, although average selling prices for both flats and terraced houses are above the asking price.
“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,” said Mark Smith, managing director of s1homes. “That’s not necessarily good news for the first-time buyer but will encourage those who see property primarily as an investment.”
The s1homes quarterly report is generated by comparing the asking prices of the 30,000 homes for sale on the s1homes website with the actual prices achieved as recorded by the official government agency Registers of Scotland.