Rightmove highlights to vendors how over-pricing turns off buyer interest

The price of property coming to market has increased by the lowest amount for eight years on a monthly basis, Rightmove’s House Price Index has revealed.

The portal’s latest data shows that February saw asking prices increase by 2% or £5,986 to average £306,231, the smallest monthly increase since February 2009 and below the average of 5% typically in this month.

Prices were up 2.4% annually, which is the lowest increase since April 2013.

The average time to sell increased from 72 to 79 days between December and January, while the average stock per agent increased slightly from 51 to 52.

Miles Shipside, Rightmove director, said buyers were now far more price sensitive: “The majority of the market is price sensitive with most agents we surveyed reporting that possible buyers are reluctant to enquire about a property just a few percent too high in price.

“With the annual rate of price increase now at 2.3%, a property that is over-priced by more than 5% will have to wait more than two years for the market to catch up with it.

“Some sellers may have thought there is no price to pay by starting high and reducing the asking price later. However, our extensive tracking of properties that have found a buyer shows that a property should substantially out-perform the level of interest in similar properties in the local area during the first three weeks of marketing to minimise the risk of being left on the shelf.

“Over-pricing loses you that vital initial interest and impetus, and buyers often have reservations about a property that has not sold as quickly as others or has had a price reduction.”

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10 Comments

  1. AgentV

    We have found the new rightmove reports on property interest compared to local competition really useful. Worth having a look if you haven’t already done so.

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  2. dave_d

    Vendors will in most cases choose the agent who tells them they can get ten grand more for their house than the valuation the previous agent priced it at. On the basis that 60% of houses sell with the second agent being first isn’t always key.

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    1. smile please

      10k more?

      I wish!

      We were at a property Friday another agent priced 150k more than us, thought we had topped it as well!

      Sadly this is the norm not the exception.

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    2. Blue

      The early bird catches the worm but the second mouse gets the cheese.

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      1. Robert May

        …..and the agent who knows their applicants gets a sale.

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        1. PeeWee

          ….and the agent who knows their prospective vendors as well as their applicants builds lucrative chains.

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    3. PeeBee

      “On the basis that 60% of houses sell with the second agent…”

      Is this supposedly a verified statistic?

      Can someone point me in the direction of the source, please…

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      1. smile please

        I have seen that stat (forget where)

        But think it was 60% of stock an agent loses goes on to sell with another agent. Still a high number.

        Sometimes it is best to walk away but how many of us do?

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  3. Property Paddy

    is this not reflection, sadly, of inexperienced agents working for the high turnover agents? (they want high property turnover but get high staff turnover instead) They set ridiculous targets for these poor children, make unrealistic potential earning commission etc etc and of course how do you sell the property? Win the instruction of course !

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  4. Oldtimer

    Sorry this isn’t news, since time began there have been those that overprice to get the instruction and sign up the vendors to a long sole agency than bring the  price down later and sell it. Made worse by the, usually corporate, numpties that pay a bonus for every instruction.

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