Sellers drive down cost of moving

Wednesday, 2 May 2007 12:00 AM

Sellers are driving down the cost of moving by shopping around for cheaper agent fees, research out today shows.

The Woolwich cost of moving survey finds the shortage of property on the market is giving sellers a strong bargaining position from which to get a better deal from estate agents and buyers.

Figures show the cost of moving has dropped by more than £500 in the last year - going from £5,181 to £4,666 on average.

"The market definitely favours sellers at the moment and the lack of property on the market is helping them negotiate deals with estate agents, and to a lesser degree solicitors, as agents are desperately trying to find enough good quality property to satisfy the increasing demand," explained Andy Gray, Woolwich head of mortgages.

The survey also finds sellers are not dropping their prices by as much to secure a sale - most reducing asking prices by between one and five per cent, compared with between six and ten per cent 12 months ago.

Properties are selling faster too, 19 per cent of homes selling within a month. Last year this figure was just four per cent. At the other end of the scale, harder to sell properties are also spending less time on the market. Around one in five properties are taking more than two months to sell, compared with around half of properties a year ago.

However, the Woolwich research shows home information packs (Hips), which are compulsory for sellers from June 1st, are likely to make the cost of moving more expensive - 85 per cent of agents say they believe the packs will add to home moving costs.

Mr Gray concluded: "Sellers not only have the advantage of there being more demand for property than is available, thus driving up asking prices, they are also squeezing the professionals for every penny they can to cut the costs of moving.

"In contrast, buyers are having to pay more or less the asking price to secure the property they want as well as forking out for stamp duty and other costs. Basically if you are seller moving into rented accommodation or abroad, it's about as good as it gets at the moment."

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