Scottish house price 'reality gap' widening

Couple outside estate agent The report said the "reality gap" between asking and selling prices grew in the last quarter

Related Stories

The average property in Scotland is being sold for £17,500 less than the asking price, a survey has suggested.

The s1homes house price report found the average asking price in the past three months was almost identical to the previous quarter, at £166,386.

But the price fetched by properties fell from £157,197 in the three months to December to £148,764 in the most recent quarter.

This means homes are now selling for about 10% less than advertised.

The "reality gap" three months ago was £9,000.

The report said sellers of flats and terraced houses were achieving marginally above their asking prices.

However at the higher end, the average selling price of a detached house was almost 20% below the asking price.

Reality gap

Across Scotland, most areas recorded an increase in the reality gap.

But Argyll and Bute, East Renfrewshire and Renfrewshire/Inverclyde each saw it narrow marginally.

Start Quote

It would appear that buyers are now in the stronger position and are coming in with even lower offers”

End Quote Mark Smith s1homes

The gap reappeared in Edinburgh, which had bucked the trend in the previous two quarters.

Mark Smith, managing director of s1homes, said: "After a reduction in asking prices at the end of 2011 and maintaining those prices in the first quarter of 2012, it would appear that buyers are now in the stronger position and are coming in with even lower offers."

Gina Pacitti, from solicitors and estate agents Pacitti Jones, said there were signs confidence was gradually returning to the market.

She said: "There may have been little change in prices in recent months but there has been a marked increase in activity.

"Buyer inquiries are up sharply and we have held more closing dates since January than we have for the last three years.

"For the first time since the start of the recession, we are seeing regular closing dates and properties selling for more than the home report valuation."

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Scotland business stories



  • NS Savannah, 1962Nuclear dream

    The ship that totally failed to change the world

  • Irvine WelshScots missed

    Five famous Scots who can't vote in the Scottish referendum

  • Balloons flying upUp, up and away

    Why the ever rising pound is not all good news

  • Espresso cup7 days quiz

    Which city serves the strongest cup of coffee?

  • Jean-Luc CourcoultGiant strides

    The enigmatic Frenchman behind Liverpool's 25ft grandmother

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.