Estate agents who overvalue properties to secure instructions may be costing sellers thousands of pounds and adding months to the sales process, according to new analysis. The figures indicate that homes sold after an asking price reduction achieved an average agreed price 7.7% below their original asking price.
For properties that did not require an asking price reduction, the average agreed price was 0.2% below the original asking price. This suggests an additional negotiating gap of 1.6% for reduced properties, which is equivalent to £4,800 on a £300,000 property.
The analysis also highlights a significant difference in selling times. Homes that found a buyer without an asking price reduction took an average of 24 days to reach a sale agreed. In contrast, those that needed a reduction took an average of 103 days, an additional 79 days.
Furthermore, the likelihood of a sale completing is affected by the time taken to find a buyer. Where a sale was agreed within 25 days, 94% reached exchange and completion. However, for sales that took 100 days or more to find a buyer, this figure dropped to 56%, making them 40.4% less likely to complete.