First finishers price it right.
- Property prices have moderated and while demand remains across the market, sensible and realistic initial pricing impacts on sales success.
- Data from Rightmove indicates that properties that experience a price reduction are 10% less likely to go under offer. They are also on the market for more than double the time, before they go SSTC (Sold Subject To Contract).
- After a period in which property prices have risen sharply, sellers can be overly optimistic in their expectations. Experienced and knowledgeable agents will price the property for the current market.
- Latest research by Zoopla indicates that the average reduction on initial asking price at point of sale is 3.8%, although more than 40% of recent sellers have accepted offers of 5% or more below. Source: #Dataloft, Rightmove (https://www.rightmove.co.uk/), Zoopla.
This is happening way too much. First finishers price it right!
The latest figures from Rightmove, Zoopla, and Dataloft prove once and for all the damage that is caused by overpricing.
There is absolutely no doubt, no doubt at all that overpricing a property when first put on sale will almost certainly end up with two things happening.
- It will take much longer to sell
- It will sell for less than if it was priced correctly in the first place.
The first thing that an agent must (or at least should) get across when carrying out a market appraisal on a property is make it clear what your property is really worth.
Unfortunately many, indeed most, DO NOT!
Even the few that do (Town and Country Herts and Essex are one of them) will or indeed should point out the following.
Property is only worth what someone wants to pay for it! Period!
Facts fly high, whereas stats can lie!
Town and Country Herts and Essex have been waiting for these figures to be released for a long time.
The truth is out!
- If you allow your agent to over value your property, IT WILL NOT SELL!
- In the extreme unlikelihood it did sell, it would not value up come mortgage valuation.
- After a couple of weeks your agent will suggest a price reduction!
- Property that has undergone a price reduction are at least 10% less likely to sell!
- If your one of the 90% that do sell after a reduction, it will take twice as long to sell!
Why is it so important to get the price right straight away?
The lower you advertise your property, the higher you will sell it for!
A bold statement? Yes it is, but one that’s true!
Take three identical properties that really are worth £300,000
Advertise one at £325,000, one at £300,000 and the other at a guide price of £275,000 – £300,000.
The property on for £325,000 will eventually reduce to £300,000. Sometimes in one reduction, sometimes in 2 or 3 reductions. There is every chance it will sell for slightly less AND it will take well over 90 days to sell.
The property on for £300,000 will sell much quicker. Probably around the 55 days (national average). It might sell for £300,000 but the latest stats suggest it will sell between £290,000 – £300,000
The property on for a guide of £275,000 – £300,000 will get many more viewers. More viewers mean more people will like it. The more people that like it means that we can use our skills as negotiators to get the price up! It will almost certainly sell for £300,000 and if enough people want it it might go for a little more PLUS it WILL sell very quickly!
Conclusion
First finishers price it right.
- Property prices have moderated and while demand remains across the market, sensible and realistic initial pricing impacts on sales success.
- Data from Rightmove indicates that properties that experience a price reduction are 10% less likely to go under offer. They are also on the market for more than double the time, before they go SSTC (Sold Subject To Contract).
- After a period in which property prices have risen sharply, sellers can be overly optimistic in their expectations. Experienced and knowledgeable agents will price the property for the current market.
- Latest research by Zoopla indicates that the average reduction on initial asking price at point of sale is 3.8%, although more than 40% of recent sellers have accepted offers of 5% or more below. Source: #Dataloft, Rightmove (https://www.rightmove.co.uk/), Zoopla.