Buyers offering less for homes

STV
Trend: Sellers are dropping prices but buyers are still making lower offers© STV

Homebuyers are still offering less than the advertised cost of a property despite more sellers dropping the asking price, according to a new report.

The average property sold for around £9,000 less than the asking price in the three months to December, the s1homes Scottish House Price report said.

It found the average asking price fell by 3.33% to £166,494 but the average price properties actually sold for also decreased from £163,068 to £157,174.

This means the average home in Scotland is still selling for around £9,000 less than the asking price, the same as the figure for the previous three months.

Mark Smith, managing director of s1homes said: "It would appear that while sellers are being less optimistic about the prices they can achieve, buyers are still able to come in with offers under the asking price in these market conditions."

Most regions saw an increase in the reality gap even though asking prices were generally falling, as the selling prices fell further.

Glasgow and Dunbartonshire was the only area to see the gap narrow as the average asking price fell by more than the selling price.

In Ayrshire, the gap increased even though the asking price fell by 1.68% to £148,688 because the average selling price fell further to £128,229.

Edinburgh was the only region where the reality gap disappeared as selling prices overtook asking prices.

Stuart Ferguson of Allen & Harris Estate Agents said: "We continue to be in the midst of a price sensitive buyers' market and uncertain economic times. Many vendors are willing to take a reduced offer if they themselves can then buy their new home at a reduced price. Buyers are very much guided by Home Report values but in Scotland, another positive sign has been many properties are taking less time to sell. If a newly marketed home is sensibly priced for the market, the chance of a quicker sale is then far greater."

The report, published quarterly, samples around 25,000 properties advertised on s1homes.com every month and provides trends in the various property markets throughout Scotland.