Many london homes sold for less than asking price

A interesting topic!

Yes, it's not uncommon for many London homes to sell for less than their asking price. In fact, according to a recent report by property website Rightmove, in 2020, 44% of London properties sold for below their asking price.

There are several reasons why this might be the case:

  1. Competition: The London property market is highly competitive, with many buyers vying for a limited number of properties. This can drive prices down as buyers try to outbid each other.
  2. Over-valuation: Some sellers may over-value their properties, leading to a mismatch between the asking price and the property's true value. This can result in the property selling for less than the asking price.
  3. Market conditions: The London property market is subject to fluctuations, and market conditions can affect prices. For example, a slowdown in the market or a change in government policies can lead to a decrease in prices.
  4. Negotiation: Many buyers and sellers negotiate the price of a property, and some sellers may be willing to accept a lower offer to secure a sale quickly.
  5. Condition of the property: Properties that require renovation or have defects may sell for less than similar properties in better condition.

Some of the areas in London where properties are most likely to sell for less than the asking price include:

  1. Outer London: Areas like Croydon, Bromley, and Sutton tend to have lower prices and more affordable housing options.
  2. New developments: New build properties, especially those in areas with high demand, may sell for less than the asking price to attract buyers.
  3. Properties with defects: Properties that require renovation or have defects may sell for less than similar properties in better condition.
  4. Long-term rentals: Properties that are being sold as long-term rentals may sell for less than the asking price to attract investors.

It's worth noting that while many London homes sell for less than the asking price, some properties still sell for above their asking price, especially in popular areas like central London.