Taylor Wimpey's Daniel McGowan considers how new build prices can give an accurate value of homes.
How much is a home really worth? With conflicting reports about the current market value of property in Britain, that can be a tough question to answer.
Land Registry House Price Index figures show property prices have gone up over the past year. However, the monthly Halifax House Price Index is reporting that prices in October 2010 were 1.2 per cent up on the same time last year, 1.2 per cent down on the previous quarter, but 1.8 per cent up on the previous month.
So, with such mixed messages, how can a house hunter - or seller - really know the correct price for a property?
A quick look at the way new house builders such as Taylor Wimpey in the north Midlands go about their successful businesses should provide more than a few clues.
Whereas a private homeowner can normally afford to sit back in their armchair and wait for the property market to rise in order to get the very best possible price, the simple fact for developers is that they need to price their homes realistically to meet annual selling targets.
Having vast swathes of land full of empty homes is something that Taylor Wimpey easily avoids, thanks to its tried and trusted policy of pricing its property at a level which buyers in search of Midlands property for sale are happy to pay.
The fact that hundreds of purchasers have bought a new Taylor Wimpey home during 2010 in the north Midlands region, which covers developments of property for sale in Staffordshire, Shropshire, Warwickshire, Derbyshire, Birmingham and the Black Country, is a ringing endorsement of the way the house builder values its property.
Quite simply, this high level of sales during an economic downturn suggests the housebuilder is getting its prices right.
The successful placement of its new homes at the correct market value means that none of the 15 new homes developments across the north Midlands region has gone any longer than three weeks without selling at least one property.
Indeed, business is so good, thanks to Taylor Wimpey's ability to produce quality new build homes and offer them at exceptional value prices, that it will have soon opened six new homes developments in the north Midlands during the final quarter of 2010.
So while estate agents may bemoan a lack of trade, the developer is experiencing the complete opposite when it comes to demand for its high quality houses and apartments - because Taylor Wimpey properties are always sold at the true market value.
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