It's wise to keep them sweet

Last week Halifax, the country's largest mortgage lender, reported that British house prices were likely to fall by 2 per cent this year. A report released yesterday by the Yorkshire Bank meanwhile shows that a favourable market means buyers are becoming increasingly fussy about what they purchase.

Sellers and their agents are having to work a lot harder to shift properties as a consequence. But do incentives such as offering to pay the purchaser's stamp duty, selling at auction, or giving away a free car with a new flat make any difference?

Putting it in the right light

In the Yorkshire Bank survey, 27 per cent of buyers said they would now expect to be able to visit a property several times before making an offer. This was up from 21 per cent six months ago and shows sellers now need a degree of patience.

One tactic often used to generate interest in a property is an 'open-to-view session' when all prospective buyers can inspect the house together during a pre-arranged time slot. Nick Talbot, a partner with estate agent Carter Jonas, says that when used properly such viewing sessions can work well. For one thing, they can give buyers an idea of how popular the property is, potentially encouraging them to make an offer sooner.

But most important is the right marketing in the first place, he says. Photography is key. 'Concentrate on getting the pictures taken on the right day with a blue sky and the sun shining and make sure that the photographs are of a high quality for any advertising and websites. If the property has been on the market a while, the photos may be slightly seasonal and we suggest buyers invest in reprinting brochures - this does lead to sales.'

Getting the price right

While presentation is key, so is pricing, says Noel Harris, director of the estate agency Bowes Mitchell in Newcastle. 'In a harder market, agents need to improve every aspect of what they are doing,' he says. 'The first is to tell clients the truth about prices and support this with documented evidence of properties which have sold and those which have not.'

He says that some agencies, having become accustomed to rising prices, are still overpricing houses to win custom. He suggests that sellers should insist that any advice, however promising it sounds, be supported by sale prices of similar properties.

One in four buyers are now prepared to offer less than the asking price, even for a property they really want, says the Yorkshire.

Harris believes that realistic pricing is the key to securing a swift sale because buyers are clued up. 'There are so many sources of information that both agents, buyers and sellers can access, and yet the only people who seem to be accessing this information are the buyers, who will often not pay more for a property than it was worth a year ago.'

Tim Waring, partner at Knight Frank's new office in Harrogate, Yorkshire, says sellers should be wary about asking for too high a price initially, as they may end up getting their fingers burnt. 'Once you have lost the initial interest when the property first comes up for sale, you may end up having to lower the price and chase the market. This means you lose your negotiating strength.'

Offering to pay stamp duty is one tactic used to encourage a potential buyer, but this should be targeted at first-time buyers, for whom funds are generally tighter and where having a percentage of the purchase or legal fees paid could be more attractive, says Talbot.

Under the hammer

Another option is to go to auction, as they are becoming an increasingly popular way of buying and selling property. However, Harris believes they are best suited to properties that are really hard to sell. 'Auctions work on the basis of lowering the guide price to attract interest, but in my experience a lower price attracts more interest regardless of the method of sale. It is just as likely to work if you offered the house on the open market. Buyers are quick to recognise a bargain and are willing to offer over the asking price if that is the case.'

Waring doesn't usually recommend that ordinary homes go up for auction. 'If they are in an auction they can be perceived as being in a position where they need to be sold.'

Using gimmicks

Talbot says that sometimes cars are offered as part of the package when developers are selling a block of modern flats, but he doesn't believe these gimmicks work for the average seller.

Waring believes that sweeteners, such as giving away cars or offering to pay stamp duty, can be 'misinterpreted as gimmicks', although including good quality carpets and curtains in the sale can work in some circumstances.

The bottom line, says Waring, is that a competitive edge in a difficult market comes from good marketing, quality photographs and good floor plans in the sales particulars and in choosing the right publications and websites to advertise in.

'Some people have to move, while others are dormant buyers who will make an offer if they spot the right property, and you need to be able to reach both.'