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Rightmove has found are twice as likely to find a buyer if the house is priced correctly on the first time around. It can be tempting to high ball with an asking price, but this could come with with a cost.
The popular estate agent analysed 300,000 newly-listed homes across four months.
The data showed those that needed to be reduced had a one in three chance of finding a buyer within the timeframe, compared to a 63 percent chance if priced right from the start.
If a home is overpriced it might take an extra 26 days on average to find a buyer.
Furthermore, homes priced right first time are on average getting an offer accepted 26 days more quickly than those that have had to have at least one reduction before they get an offer accepted.
The average time to find a buyer if a property is priced right is currently 21 days, rising to 47 days if it needs to be reduced.
Currently one in six properties on Rightmove have had at least one reduction since May.
This is an improvement on the 18 percent for the same period last year.
The average size of a reduction is also slightly lower, at five percent, compared to 5.2 percent last year.
This means an average reduction of almost £16,000 based on the current national average asking price of £319,497.
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Rightmove’s Director of Property Data Tim Bannister said: “This analysis shows just how vital it is that sellers listen to their agent when they recommend the asking price that the property should be listed at.
“If sellers are serious about selling, then starting with too high an asking price can cause unnecessary delays, and also make it a lot less likely they will actually find a buyer in the end.
“The temporary stamp duty holiday means more sellers are in a hurry to get a sale through conveyancing, and with this also taking longer at the minute a realistic asking price could soon end up being the difference between completing in time or losing out on the savings.
“A number of properties are reduced every year, and it’s important to say that not all cases are down to over-pricing.
“If there’s an area of lower demand than supply then a reduction may be needed if the seller needs to move.
“Also if prices have gone down in an area it’s understandable that a seller will be hesitant or may not be able to afford to put their home on for a lower price than they bought it for.
“But in the busy market we have right now there will also be some sellers who may think it’s worth a punt to ask for their home to be put up for sale for the same price as their neighbour across the road, when their neighbour may have extra room or their home may be in a better condition.
“A good local agent will be able to look at a number of things before valuing a home, such as the condition of the home and comparable properties, making them the experts at getting the price right first time.”
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