Home sellers must cut prices to make a deal

Homeowners need to cut their prices to realistic levels to be able to sell in a depressed market.

Estate agent Hamptons International claims it is even possible to attract competition in high demand areas – with an average of six potential buyers for each property - despite the turmoil inflicted by the credit crunch.

Indeed, Hamptons found viewings have increased 12 per cent since April 2007.

"The current house price drop has happened relatively quickly and has resulted in many would-be buyers and sellers holding back. However, there is still a market for houses with realistic guide prices," said Mark Anderson, managing director Hamptons International.

"The right product, at the right price and in the right place will sell."

Hamptons argues prices have fallen by between ten and 15 per cent since the autumn of 2007.

However, more sober assessments from Nationwide and Halifax find house prices fell just over one per cent year-on-year in April.

"One of the major problems facing the UK housing sector at the moment is the number of properties on the market, priced at ten per cent higher than they should be," Mr Anderson.

"This has caused real stagnation and one of the biggest dangers facing the property sector now is, if consumers take six – 12 months to realise the necessity to re-adjust their pricing to more realistic levels then house prices may fall further."

The estate agent warns further house price drops could take place if consumers fail to take stock of changing market conditions and adjust prices accordingly.

Chris O'Toole