The difference between what people in Scotland aim to sell their house for and what they actually receive has narrowed, according to a new report by property website S1homes.

The “reality gap” dropped from 9% to 2% in the third quarter of 2013 according to the survey.

S1homes said that this was due to a change in what people were prepared to pay for their homes and not a drop in prices.

The report compared average asking prices against the officially registered prices that houses sold for.

The average selling price increased in Scotland by over £8,500 to £161,748 with properties selling on average £4,000 less than their asking price. The difference in Q2 was £14,500.

However, an increase demand for flats saw them sell on average 17% or £19,000 above their asking price.

This trend seemed to continue throughout the market, with all property types except for detached homes selling for more than their advertised price.

Despite an increase in the average selling price of detached homes, they continued to sell well below their asking prices.

Average asking prices fell in most areas across Scotland, with the notable exceptions being East Renfrewshire, Fife and West Lothian.

A 4.5% increase in the prices houses were sold for saw the average selling price overtake the asking price.

Malcolm Leslie, Partner with Strutt & Parker’s Scottish Country House Department, said: “The S1homes findings mirror what we have seen in the second half of this year, with buyers paying closer to or above Home Report valuation.

“There is a sense of confidence in the market which is being fuelled by the government’s Help to Buy scheme, a greatly improved economic outlook and availability of mortgage finance. This autumn we have seen several very quick sales on city properties and quite a few larger country houses and farms reach their marketing price and so go into 2014 with genuine optimism.”

“This quarter's report shows that there have been significant changes taking place in the property market,” S1homes commercial director Ewan Stark added.

For more information on the Scottish residential property market, contact one of our experts.