New research published by Which? this morning claims to show that one in five properties sold in the year to September 2016 were reduced by more than 5% of the initial listing price.
It says this was as a result of estate agent over-valuations.
Purplebricks said that the Which? report highlighted the need for more transparency in estate agency and said it was delighted with its own approach.
Which? said it analysed more than 370,000 property sales in England and Wales, finding that 19% had been heavily reduced from the initial asking price.
It said today that “the price reduction implies an initial valuation that was too high”.
The sample represents some third of the 1,141,620 properties sold in the 12 months to last September. Property sales in Northern Ireland and Scotland were excluded from the Which? report.
The study found that properties that had been reduced by more than 5% took an average of 64 days longer to sell and had an average final sale price of almost £20,000 less than properties that sold without such a significant reduction of the asking price.
Which? also found that properties reduced by 5% or more took on average 243 days from first listing to Land Registry sale date. All other properties took on average 179 days from first listing to Land Registry sale date.
For properties that were not heavily reduced before selling, Which? found that the average listing price was £261,000, before an average sale price of £260,000.
For properties that were reduced by more than 5%, the average listing price was £266,000, before an average sale price of £241,000.
Richard Headland, editor of Which?, is telling consumers: “When selling your home, make sure your agent can provide evidence of similar sales to back up the valuation.
“If the valuation is not realistic, you could end up thousands of pounds worse off and wasting a lot of time.”
Michael Bruce, CEO, Purplebricks, said: “We welcome today’s report from Which? which highlights the need for more transparency in estate agency. Purplebricks provides customers with 24/7 visibility from instruction to completion and offers an alternative to the outdated commission model.
“We are delighted that our approach, combining technology with local property experts, has been proven to sell properties more quickly and for a better asking price, compared to other agents.
“In today’s world of estate agency, customers should have clear insight on the process, access to information and transparency at all times.
“Customers should always be given information such as the value of similar properties sold in their area at valuation, have instant access to feedback and offers and be able to directly contact buyers at any time, from anywhere 24/7.”
“We are delighted that our approach, combining technology with local property experts, has been proven to sell properties more quickly and for a better asking price, compared to other agents.!
How can the industry bodies let him get away with that statement without challenge ?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Where are the appropriate bodies to make a statement on their members behalves!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Don’t worry I am sure the staff at NAEA have been alerted, called in early and, as we speak, are preparing the inevitable statement to defend the majority of its members against yet another blatant attack!!!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I have heard it all now…… 99% of property comes on at vendors prices not the agents . this is what Hilary must have felt like against trump.
Please for the love of god can a body be created that can stop this#fakenews from even being printed.
Purplebricks are estate agents one minute and which the next.
They are closer to the famous white sock brigade then any other agent i know.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Absolutely agree. How many of us can afford to walk away from an instruction when the vendor wants to ignore our valuation and put the property on at his/her inflated price, especially knowing that a competitor will snap it up?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
why does Property Eye always give Michael Bruce a trumpet to blow, do they get a bonus every time they get him to quote in an article ?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
>the price reduction implies an initial valuation that was too high
No it doesn’t really.
>The study found that properties that had been reduced by more than 5% took an average of 64 days longer to sell
No surprise there then.
>an average final sale price of almost £20,000 less than properties that sold without such a significant reduction of the asking price.
Perhaps the properties that were reduced more were the higher valued properties. It’s difficult to draw conclusions without seeing the data. I’m not convinced by the conclusions being drawn.
Also from the Which? report which was not mentioned in this article:
1. online-only and hybrid agents sold more homes that hadn’t been reduced in price compared to traditional agents.
2. that properties that start out over-priced don’t generally later achieve a higher one than an ‘uninflated’ one.
The second point suggests that sometimes you do achieve a higher value so if you’re prepared to wait it sometimes pays off.
Mr. Bruce’s comments have been attacked on here but make more sense if you see point 1. As a purplebricks shareholder I am quite happy for him to market the company at every opportunity.
His comment ““Customers should always be given information such as the value of similar properties sold in their area at valuation, have instant access to feedback and offers and be able to directly contact buyers at any time, from anywhere 24/7.” is very true in my opinion.
I currently have a property listed with PurpleBricks and they did provide me with a comparison report. Only one of the other 3 agents I consulted did this.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Thought I’d nodded off and woken up on April 1st. I can’t recall seeing a PB instruction not reduced and can’t think of too many to sell even then.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
who needs the truth when you have PIE printing this stuff. It snot their fault but i cant see any other body standing up to this b””x
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
‘Been proven’ Mr Bruce……come on then …….show us the proof!!!
This is just another comment to court controversy and publicity at whatever cost. Even publicity that cannot be substantiated is still publicity.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Transparency?!
Hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahah….
breathes….
Hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha…
gasps… tears rolling down cheeks
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
As with politics and religion, if a fantasy is repeated often enough a substantial quantity of gullible people will believe it. And the bigger and more powerful the spouter of fantasy becomes the harder it is to overturn it.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
It really makes me laugh how much Purplebricks gets under everyone’s skin!
If they are not selling properties, not giving accurate figures and so on.. then why let it bother you??
Concenrate on your own business and don’t worry about PB!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I just don’t like the insult to the public’s intelligence!!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
They get under our skin because what they say and do matters – they are the manifestation of the “instant gratification” age and PB celebrate their deceptive business model and call it a success when it quite obviously doesn’t do what the public wants it to do. Shame on PB for marketing themselves as an estate agent and shame on the public for believing them.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
This was bound to be claimed at some point……part of the ‘ra ra’ marketing plan I guess. Next thing we know it will be in national TV advertising….deliberately courting an informal resolution agreed with the ASA to remove it…..like a spoilt child demanding more attention and then revelling in the chastisement. So can anyone out there find some completed sales showing on land registry and let’s put the microscope on them!!!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
PB marketed a property in my area last year. Quoted price “Offers in Excess of £170,000”. Any proper agent would have immediately seen this as a deliberate gross under value with true value being £200,000 if not more. I was genuinely interested in the property for myself and made enquiries to view via their help desk. Viewing booked, or so I thought, only to be phoned by the “LPE” (who lives some 35 miles away and to the best of my knowledge has never worked in my area as an EA) to be told first viewings were taking place on a given Saturday a few weeks hence. I advised “LPE” I was attending my fathers 90th birthday 250 miles away that day so couldn’t be there but happy to view anytime before. “LPE” advised I couldn’t view beforehand because “the owners want viewings on that Saturday”. The property in question was, I believe, part of an estate and therefore not occupied. I arranged a viewing for the following Monday but “LPE” told me that judging by the number of viewers already booked in, the property would probably be sold on that Saturday. Received phone from “LPE” on the Sunday cancelling my viewing for the following day advising owners had accepted an offer. I asked whether the owners might be interested in a higher offer to which “LPE” advised emphatically “no they wouldn’t”. Some weeks later whilst on a viewing an applicant advised he was interested in the same property but was out of the country on THE viewing day but had a look externally and would have been happy to pay “at least £200,000 and probably more if needed” as perfect for him but “LPE” told him that the property already sold. Property sold to one of our apps at £190,000!!!! If only the owners really knew how much they “saved”
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Try paragraph breaks. Makes things a lot easier to read.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
PB marketed a property in my area last year. Quoted price “Offers in Excess of £170,000”. Any proper agent would have immediately seen this as a deliberate gross under value with true value being £200,000 if not more.
I was genuinely interested in the property for myself and made enquiries to view via their help desk. Viewing booked, or so I thought, only to be phoned by the “LPE” (who lives some 35 miles away and to the best of my knowledge has never worked in my area as an EA) to be told first viewings were taking place on a given Saturday a few weeks hence. I advised “LPE” I was attending my fathers 90th birthday 250 miles away that day so couldn’t be there but happy to view anytime before. “LPE” advised I couldn’t view beforehand because “the owners want viewings on that Saturday”.
The property in question was, I believe, part of an estate and therefore not occupied. I arranged a viewing for the following Monday but “LPE” told me that judging by the number of viewers already booked in, the property would probably be sold on that Saturday. Received phone from “LPE” on the Sunday cancelling my viewing for the following day advising owners had accepted an offer. I asked whether the owners might be interested in a higher offer to which “LPE” advised emphatically “no they wouldn’t”. Some weeks later whilst on a viewing an applicant advised he was interested in the same property but was out of the country on THE viewing day but had a look externally and would have been happy to pay “at least £200,000 and probably more if needed” as perfect for him but “LPE” told him that the property already sold. Property sold to one of our apps at £190,000!!!! If only the owners really knew how much they “saved”
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
You should have just made an offer and insist it be passed on to the owners as is the legal requirement. They then would surely have had to allow you to view the property.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
You’re right, I should have! £200,000 plus was easily obtainable for that property if the job was done properly.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I would suspect 99% of the properties found to have reduced were shown evidence as to why the agent thought the price a different price was correct only to be met with that good old fashioned English ailment known as “P.D.A” (Price Denial Syndrome) for all you none medical people out there.
Classic symptoms are: Blurting out “but mines bigger and better” or “They were desperate to sell” whilst visual signs include “red shaky faces” and “draw dropping with tears in eyes”
The remedy for a classic case of P.D.A is agreeing to try a higher price on the understanding if it doesn’t work we may just need to “reduce the amount of medication”.
Very simple to miss P.D.A if you don’t know what it is.
Yours, Ric founder of the “Help People With PDA Society” also known as HPWPDAS easy to remember.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
*jaw dropping* fat fingers.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Yes, strange how properties can be bigger than the one five doors away that was built at the same time to the same spec…and neither are extended.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
You wouldn’t catch me claiming mine is bigger than it is LOL.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Interesting quote from Mr Bruce, whose company, in response to a complaint from a very aggrieved lady stated something along the lines of “you originally marketed your property at the upper end of our valuation range” – when the “range” was THIRTY THREE PERCENT of the lower figure!
Which would ANYBODY want for their property – £30,000, or £40,000?
HOW, Mr Bruce, did your “combining technology with local property experts” come up with such an INACCURATE Marketing figure which left this lady up in the air with no buyer?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Just waiting for the NAEA to come out and inevitably comment to defend the majority of its members from this attack……waiting…..
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Too busy designing new logos! #NFLOPP
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Can Robert, PeeBee or Chris consult their electronic wizardry and reveal what percentage of current PB stock (FS & UO) has been reduced?
Given their superior use of technology coupled with genuine local property experts I’m assuming the figure is very low, but you never know…
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
NAEA statement defending the attack on the majority of its members has to come soon as a PIE newsflash!
tap,tap…..tap,tap…..tap,tap………..
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Someone else in the office just said;
‘Can you just stop that tapping….it’s really annoying!’
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
What would Mr Bruce say to this property’s price history?
http://www.zoopla.co.uk/for-sale/details/40710802#1KdYwxo3727tuvuz.97
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Malcolm,
That’s brilliant, maybe we can all dig out a few and then forward them on to Which! See what they say.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Wow, just wow
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I for one will state that the unpopular message coming out of this Which? report is true…estate agents are turning a challenging market into a nightmare with over valuations.
I have been reviewing properties that I advised and pitched for over the last year, and those that I lost on an argument of valuation; it makes pretty ugly reading. I definitely got 2 wrong and they have sold, the rest have either now been withdrawn after several reductions or are now on the their 3rd agent and Rightmove + is showing marketing times of a year. I am not talking about little houses and flats where there are more direct comparables. The challenge is in finding direct evidence, however I am seeing spectacular greed and ignorance and when the owners are being asked for price reductions, they feel they are being mugged by a lazy or incompetent agent and therefore not listening to advice. There are not enough who will listen and react, but when they do, they value candor. I have just sold one that I took off one of the big International names, for £500,000 less than their advice and respect the client for listening to reason rather than ego and understanding that they had not lost that money, it was not worth it in the first place. I am speaking with several others where the conversation starts at starts at £1m lower…..
Since starting writing this, I have just spoken with a hot buyer who has just been gazzumped on a house by none other than Burplepricks….
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
why would PB gazump someone ? surely that would mean they are actually involved in negotiations, something which they most definitely are not around here
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I feel some ‘interesting’ questions coming Mr. Bruce’s way…
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register