Trying to sell your property isn’t always the easiest thing.
It’s understandable for homeowners to want to make a profit, hence why their asking price is higher.
But that could sometimes come with a cost – a very big one.
The estate agents at Rightmove analysed 300,000 newly-listed homes across four months.
It found those that needed to be reduced had a one in three chance of finding a buyer within the timeframe.
As for those who priced their homes at a reasonable sum had a 63% chance of selling quicker.
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If a home is overpriced, it might take an extra 26 days on average to find a buyer.
While homes which are priced right first time are on average getting an offer accepted 26 days quicker.
According to the experts, the average time to find a buyer if a property is priced right is currently 21 days.
It is believed one in six properties on Rightmove have had at least one reduction since May.
This is an improvement on the 18% for the same period in 2019.
The average size of a reduction is also slightly lower at 5%, compared to 5.2% last year.
It means an average reduction of almost £16,000 based on the current national average asking price of £319,497.
Tim Bannister, who is Rightmove’s Director of Property Data, spoke about the statistics.
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He said: “This analysis shows just how vital it is that sellers listen to their agent when they recommend the asking price that the property should be listed at.
“If sellers are serious about selling, then starting with too high an asking price can cause unnecessary delays, and also make it a lot less likely they will actually find a buyer in the end.
“The temporary stamp duty holiday means more sellers are in a hurry to get a sale through conveyancing, and with this also taking longer at the minute a realistic asking price could soon end up being the difference between completing in time or losing out on the savings.
“A number of properties are reduced every year, and it’s important to say that not all cases are down to over-pricing. If there’s an area of lower demand than supply then a reduction may be needed if the seller needs to move.”
Tim added: “Also if prices have gone down in an area it’s understandable that a seller will be hesitant or may not be able to afford to put their home on for a lower price than they bought it for.
“But in the busy market we have right now there will also be some sellers who may think it’s worth a punt to ask for their home to be put up for sale for the same price as their neighbour across the road, when their neighbour may have extra room or their home may be in a better condition.
“A good local agent will be able to look at a number of things before valuing a home, such as the condition of the home and comparable properties, making them the experts at getting the price right first time.”
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