Estate Agents Over-Valuing Homes To Gain Instructions ‘helping Nobody’

Sellers are being advised to be realistic with their asking price if they want to attract buyers amid a slowing housing market.

The latest research by GetAgent.co.uk suggests that more needs to be done to stop the practice of over pricing homes to win instructions,

According to the estate agent comparison site, just 36% of all homes that have seen a price reduction in the current market have been listed as sold subject to contract (SSTC).

GetAgent analysed current market stock levels looking at both the total proportion of homes for sale that have seen a price reduction in the current market, as well as the proportion of those price reduced homes that have actually attracted a buyer.

The figures show that across England, an estimated 34% of total for sale stock, excluding homes already marked as sold subject to contract, have seen an asking price reduction since being listed for sale.

This level of asking price reduced for sale stock remains fairly consistent across the market, with the East Midlands home to the highest level at 37% while the North West is home to the lowest level at 31%.

But while an asking price reduction may be a common tactic in increasing buyer interest, the figures from GetAgent show that it doesn’t necessarily secure a sale.

Of all the homes listed for sale to have seen an asking price reduction across the market in England, just 36% had also found a buyer and been marked as sold subject to contract.

The South West was home to a slightly higher percentage, with 40% of all homes to have reduced in price finding a buyer, while in London, this proportion dropped to just 30%.

The co-founder and CEO of GetAgent.co.uk, Colby Short, commented: “It has always been clear from data that pricing a property inappropriately makes a successful sale far, far less likely. For a buyer, seeing a price come down makes the property seem less appealing and often leads to a lower selling price than if the property had been priced appropriately from the start. For a seller, these unrealistic expectations often mean disappointment with a result that may still represent a job very well done by the estate agent.

“Unfortunately for agents and for the vendors, vendors mainly select agents based on the valuation provided or the fee charged which often leads to overvaluing of properties and ends up helping nobody. Using performance data to prove an agent’s superior quality allows the agent to build trust from the outset, price the property accordingly and charge a fair fee for the job done.”

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