Selling prices quite a bit lower than asking prices

whatever76

whatever76 wrote: »

not in Cork - I can tell you right now anything in a decent location is going WAY above the asking .

eg. Asking 275 - > Sold for at least 325k as I had to bow out at that point !!

It totally depends on what and where you are buying!

I just bought for well below the asking price and many of the other properties in the same market are going for well below asking price.

vrusinov

As others said, just an average difference is not a very interesting comparison and does not tell the whole picture. If would be very interesting to see the distribution.

From anecdotal evidence what I suspect is happening is that desirable properties go way above asking price (I've seen almost 100k above!), while there is also a lot of undesirable and overpriced properties that sit on myhome for years until vendor finally budges.
I've been following house in a flood risk area that eventually went for 30-40k under the asking price. Vendor may have hoped to catch some fool not doing their research. It was otherwise a nice house.

Bob24

There are a few reasons why the comparison methodology is flawed, some already listed but I’ll mention another one.

When you look at selling prices from the PPR you have a solid set of data which only includes actual completed transactions whereby there was a serious vendor actually looking at selling. Averaging those means something and can be compared over time. And when you see people posting here about selling prices being higher than asking prices, this only includes this dataset as they are referring to completed sales.

Now when you look at asking prices on MyHome you get a lot of rubbish. There will be ads which are obviously priced too high and have been around for months, people who are just testing the market and don’t really intend to sell, or hell even ads for properties which don't exist or aren't actually one sale (personal experience, including from EAs). Basically the average of these figures means very little unless you know how to exclude ads which will never lead to an actual sale from your calculation (and there are a lot of them). In any case it can’t be compared to your previous average which was only based on serious ads which did lead to a sale.

So the problem is no even just that you’re not comparing like for like properties or are possibly looking at different time periods. It is that you are comparing a reliable dataset to a fairly dodgy one.

If you wanted a real estimate of the gap, you would have to take a sample of completed transactions from the PPR, look-up the original asking prices for those on MyHome (no always possible), and then average actual prices and asking prices for that sample and compare them (by only getting MyHome data for actual transactions you are getting rid of the rubbish, but while much better even that wouldn’t be perfect as some EAs increase the MyHome/Daft asking price as the bidding process is going on - I have seen that done myself - meaning you wouldn’t capture the original asking price).

In short, the reason we only have anecdotal comparisons of asking vs selling and not much aggregated data is that accurately producing high level figure is very hard at best and possible impossible.

Captain Flaps

We've just purchased a property and our final bid was just shy of 15% over asking.