Rightmove’s House Price Index provides a monthly national picture of house prices and activity. The latest Index shows the lowest annual increase in house prices since 2013 and, although demand remains strong, this data provides a warning to sellers who over-price their properties.
Research has shown that a slower rate of price increase makes it riskier for sellers to over-price their property, whilst analysis also shows that property is 40% more likely to sell if priced correctly when first coming on to the market. A recent survey of estate agents by Rightmove shows that we live in a price-sensitive market, with buyers reluctant to enquire if a property is priced just a few percent too high, meaning an over-priced property can simply turn people off even viewing a home.
With changes to the economy, buyers in particular markets are more price sensitive than they have ever been before. Over-pricing loses that initial interest and impetus that is vital for securing a sale and – on the flip side – buyers often have reservations about a property that has not sold as quickly as others, or has been reduced in price.
The best way to prevent over-pricing your property is to invite more than one agent to offer advice in connection with your proposed sale. Valuing property is not an exact science and therefore hearing the thoughts and experience of more than one agent is invaluable in setting the correct price. It's also important to choose the agent for reasons other than their suggested asking price.
Secondly, take the advice of your agent. As a profession, we come under significant criticism (often unfairly), but the trusted agents are there to achieve you as much as they can on the sale of your property and not just to make a quick buck!