Estate agency comparison platform warns industry over pricing
April 30, 2024 12:14 pm
Across England, an estimated 34% of total for sale stock, excluding homes already marked as sold subject to contract, had seen an asking price reduction since being listed for sale.
Just over a third of all homes that have had their prices reduced have been listed as sold subject to contract (SSTC) reinforcing the importance of pricing correctly, analysis from on online comparison site reveals.
The agency comparison site analysed market stock levels on Zoopla 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.
Price Reduction
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%.
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.
It has always been clear from data that pricing a property inappropriately makes a successful sale much less likely.
Stephanie Macnab says, “I’d like to think we have helped keep the percentages down for the North West, as we provide realistic sales valuations and have the lowest reduction rate in our area, where over inflated valuations continue to be a problem. These inflated figures give false expectations for sellers and do little to increase buyer confidence”.
Less Appealing
Unlike the traditional market where properties remained on the market for months, for a buyer, seeing a price come down over a protracted period of time, 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 despite a job very well done by the estate agent.
Unfortunately for agents and for the vendors, some vendors 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 well done.
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