Last updated at 16:33, Friday, 17 August 2012

More surveyors are seeing house prices fall than are seeing them rise – and more price drops could be on the way in the coming months.

These are the views of members of the Royal Institute of Chartered Surveyors in a report published this week – but they are contradicted by another report.

Rightmove surveyed 4,000 buyers or sellers and discovered a very different view. It found that less than a quarter – only 24 per cent – expect property prices to be lower a year from now. Seven out of 10 expect them either to remain the same or to go up in price.

Rightmove’s survey also found a big difference between buyers and sellers. It found that nearly half of those who want to buy in the next 12 months say prices are “above what they consider fair and reasonable”.

By comparison, it found that 64 per cent of sellers disagree – showing a worrying gap between what sellers hope to get for their house and what buyers are prepare to offer for it.

“A difference of opinion on price between buyers and sellers is nothing new,” says Rightmove director Miles Shipside. “Both are obviously keen to protect their own interests – not to mention pockets.”

But in a buyers’ market he feels sellers may be the ones who need to give.

“Naturally, sellers have an interest in standing their ground in order to achieve the best price. But when sellers outnumber successful buyers by around two to one, sellers need to lower the price or increase the perception of value.

“If a prospective buyer’s first impression is that a property is over-priced, they may not take their interest any further.”

Steve Hardaker, director of Carlisle estate agents Allan, finds that most sellers now realise that. “The market isn’t changing dramatically,” he says.

“The reality is that sellers have to negotiate on their prices and most are prepared to do so.”

Besides, anyone moving up the chain may have to sell at a lower price than they wanted but will also be able to buy at a lower price too, he said.

It’s a point that Piers Morton, senior valuer with H&H King, also stresses.

“People do have to be realistic and houses have to be priced sensibly at the moment,” he says.

“But even if you lose money selling your home you will save on the next one you buy.”

First published at 14:10, Friday, 17 August 2012
Published by http://www.cumberlandnews.co.uk