Interesting research from Zoopla shows that vendors are increasingly having to reduce the original asking price of their property, in order to secure a sale.
The property site counted the number of “price-reduced” properties on their website during two different periods, three months apart, and noticed that this number was increasing over time.
As agents fight over fewer instructions, there is an obvious incentive for them to “over-value” a property in order to secure the instruction.
The agent then has to persuade the vendor to market the property at a lower price a few weeks later, in order to get the sale.
If an estate agent attempts to flatter you with a price that you just know is too high for the current market, be prepared for a long stint on the market if you are suckered in.
eMoov online estate agents will always allow you to set your own price on your property listing, despite their best advice. But you must be realistic in reducing the price if interest is not forthcoming. The most extensive marketing package in the UK in itself cannot substitute for over optimism in a challenging property market.