Homes in Edinburgh selling for over asking price

Edinburgh bucking house price trend.Picture: Comp

Edinburgh bucking house price trend.Picture: Comp

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THE Capital is the only place in Scotland where the average property is selling for more than the asking price.

Buyers can expect to spend 1.3 per cent – or £3000 – more than the asking price, according to new figures from s1 covering the last quarter of 2013.

It follows news that more properties were sold in the Capital than anywhere else at the end of last year, with experts optimistic growth will continue in 2014.

The best deals can be found at the lower end of the property market, the research has suggested.

The house price report samples around 25,000 properties advertised on the website every month and analyses trends in the property markets throughout Scotland.

It focuses on the so-called reality gap – the difference between sellers’ price expectations and what they actually achieve.

Experts put the trend – from October to December last year – down to more realistic pricing.

Eric Curran, managing partner of DM Hall said: “It is interesting that agents and sellers are adjusting asking prices to be more competitive in the quietest quarter of the year.

“What we’re finding is that properties marketed at the correct asking price and with the correct Home Report valuation are selling within a reasonable period at or close to the Home Report value.”

In contrast with Edinburgh, across Scotland on average properties sold for around £3000 less than their asking price, although experts said this masked the real picture of the property market as the figure was strongly driven by sales of detached properties.

The average selling price fell by about £6500 for flats, almost £5000 for terraced houses and by more than £6000 for semi-detached properties. In contrast, the average selling price of detached houses continued to increase.

However, detached houses are still being unrealistically priced, the research found with buyers typically securing sales for 13 per cent, or £34,000, less than the asking price.

Semi-detached houses are generally selling for around their asking price, while flats and terraced houses are selling above their asking prices.

Graham White, of East Lothian-based GSB Properties, said there had been some improvement in what had traditionally been the worst performing sector. He said: “The lower end of the market has been the poorest performing price sector in the last few months, although year on year we have seen an improvement which is encouraging.

“Selling the lower end of the market is really a huge benefit to the whole market as it moves the chain along, creating more and more sales. Prices tend to stick between 3-5 per cent lower than home report value. There is still a lot of good quality low end stock on the market which is good for home owners or investors alike.”

Earlier this month, new Registers of Scotland figures revealed Edinburgh had the most homes snapped up while average house prices in East Lothian rocketed by 15 per cent.

Total sales during the final quarter of 2013 were at their highest level since pre-crunch 2007 with 2951 properties sold in the Capital compared with 2569 in Glasgow.