The vast majority of estate agents believe sellers are overvaluing their properties, being unrealistic in terms of achievable pricing for their properties, and attempting to sell at a price which will enable their next move, not what their property is actually worth.
The findings come from the latest market analysis from Propertymark, who say that agents are encouraging their sellers to think twice about if they are being realistic when listing their property for sale.
Propertymark registered agent Liana Loporto-Browne MNAEA said a four-bed terraced house in Greater London was with several other agents before it landed with her.
The original asking price of the property was £1,150,000 and had already been on the market for several months before it was reduced to £950,000 by Liana Loporto Property, selling in the same month for £925,000.
The property market in the UK’s expensive major cities can be less attractive when buyers’ budgets are constrained. Quieter and more affordable areas such as the North West are holding their value.
Bolton-based estate agents Miller Metcalfe report 99.5% of their properties are being agreed at the asking price.
Propertymark registered agent, Stuart Matthews from Miller Metcalfe Estate Agents said this month’s sales so far have taken 16% longer from instruction to sale agreed compared to last year.
Propertymark research found viewings per property had fallen 71% per cent from April to December 2022. This decline shows the cooling off in buyer demand, causing a direct effect on prices achieved.
However, the North West estate agency has seen some properties fly off the market in a matter of days due to realistic pricing and a stable base of serious buyers.
Properties in this area are low to mid-range in value with an average sold price over the last 12 months of £233,404, whilst properties in London fetched a higher average of £546,220 according to Zoopla.
The Office for National Statistics (ONS) most recent report, the UK House Price Index: November 2022, found “the North West saw the highest annual percentage change in the year to November 2022 (13.5%), while London saw the lowest (6.3%) of all English regions.”
A two-bedroom terrace house in Bury, Lancashire with an initial asking price of £127,000 was instructed on January 4, 2023, and achieved the asking price three days later, on January 7.
Similarly, a three-bed detached property in Tyldesley, Manchester was listed with an original asking price of £319,950, instructed on December 29, 2022, and also achieved the asking price five days later on January 3, 2023.
Nathan Emerson, CEO of Propertymark said, “The largest shift we have seen in the sales market is prices agreed, compared to normal asking prices. 2022, started as a seller’s market and ended the year back to normality as a buyer’s market.
“The best price is usually achieved in the first four to six weeks of marketing, so we urge sellers not to compare their property to other homes on the market which may not have sold yet, and ensure they receive valuations from a qualified and accredited estate agent.”