Sellers find reduced property value difficult to accept, says expert

Date:Friday 6th November 2009
Author: Ben Freedman

Fewer homeowners are likely to put their house on the market if they think they will get less than they originally paid for it, according to Mouseprice.

Selwym Lim, director of the property market information website, said what is currently happening is a disconnection between house sellers and the buyers in terms of "expectation of value".

"Really, people are attached to their expectation of value of what was set, either when they bought the place or a few years ago when they realised what it was worth," he said.

As a result, people are putting their homes on the market at a much higher value than house hunters are currently willing-or able-to pay for them.

He believes that the property market will continue to be slow for the next couple of years as people "refresh their expectations of value" about their home.

Mr Lim commented following the release of statistics by Aviva showing that 74 per cent of people would be happy to remain in their current property following the economic downturn.