New research by property portal Zoopla has suggested that nearly 30 percent of properties currently listed for sale have dropped their asking price at least once since they first went on the market to attract buyers.
The average discount on the asking price is now a staggering £25,000; an increase of nearly £4,000 since January.
Danny Luke, Quick Move Now’s managing director, commented:
When estate agents initially discuss figures with homeowners it can be very easy for vendors to get excited by the numbers being mentioned, but in reality the figures being thrown around are an asking price, not what the property is actually worth, and the two figures are often very different, as shown by this research.
Managing expectations when it comes to a property’s value is one of our biggest challenges and we find that customers often come to us believing that an asking price suggested by an estate agent is what their property is really worth, sadly that’s rarely the case.
We have touched before on the problem of estate agents intentionally overvaluing property in order to get a property on their books, and this new research highlights just how over-inflated those asking prices can be.
Ave. price reduction (%)
Ave. price reduction (£)
% of homes on market reduced
The Barnet area of London stands apart from the others in the ‘top ten’ table, with a massive average price reduction of more than £120,000, followed by Oxford (£39,890), Romford (£36,529) and Coventry (£27,329).
The fact that so many homeowners are having to slash their asking prices in order to attract buyers suggests that many estate agents are significantly overvaluing property.
If you’re keen to get a realistic idea of what a property is really worth, internet-based research is a great place to start.
Asking prices, as this research proves, can be very misleading, but property portals such as Rightmove and Zoopla now show recent sold prices by area, so you can get an idea of what properties of a similar size, in a similar location have actively achieved.