New research by LRG highlights the importance of getting a property's initial price right, revealing that homes listed accurately from the start sell at least three times faster than those with inflated asking prices. The average time to sell for correctly priced properties is just 36 days, compared to 127 days for overpriced homes, according to data published by LRG.
Buyer sentiment plays a significant role, with 56% of prospective buyers naming overpricing as the main obstacle preventing them from making an offer. This surpasses concerns such as properties requiring major renovation (42%) or structural issues like damp (35%). Neil Louth, Group Executive Director at LRG and CEO of The Acorn Group, notes that today's highly informed buyers check comparable sold prices within minutes of viewing a listing.
Properties launched at market-aligned figures attract peak interest and viewings in the first fortnight, while those priced for negotiation often remain unsold. This trend aligns with broader industry insights indicating transparent pricing enhances buyer confidence.
The research also reveals that sellers increasingly rely on factual information to inform their decisions, with 77% basing asking prices on agent valuations but 35% later acknowledging getting the price right from day one is crucial.
LRG's findings are supported by Zoopla data, showing that 44% of homes listed over the past three years failed to sell, with a third of sellers admitting to initially setting an overly ambitious price. The Bank of England's decision to hold interest rates steady is expected to bolster market confidence.
However, properties neglecting to reflect current market values will likely face extended marketing periods, impacting sellers' financial planning and moving timelines.