An estate agency chain has produced strikingly successful sales figures for the first half of the year - evidence, it says, that those properties that only find buyers after significant price reductions were probably marketed with an inaccurate valuation to begin with.
Andrews says that 70 per cent of its completions in the first half of 2018 either exceeded the asking price or were within 1.0 to 5.0 per cent of it.
Those selling at or above the asking price spent an average 49 days on the market - fsr below the industry norm of 96 days, the company says.
The figure comes from an analysis of the last six months’ sales across the 54 branches of Andrews’ network.
“Media reports which focus on vendors reducing the asking price of their property are, more often than not, tales of an inaccurate valuation in the first place. Simply, a well-priced property will sell fastest” says group chief executive David Westgate.
He says Andrews’ data demonstrates a linear pattern whereby the degree of price difference is directly linked to the time taken to secure a sale.
A small difference between asking and selling price of five per cent or less will see a sale secured within 69 days, whereas a difference of up to 10 per cent in price results in a property remaining on the market for an additional 49 days - so 118 in total.
“This is all about successfully managing expectations and unfortunately there remains a significant percentage of agents prepared to provide a high valuation simply to secure the listing” suggests Westgate.
“When this is coupled with a vendor flattered by the news that their home is worth a seemingly favourable amount, the property is placed on the market with unrealistic expectations and consequently hangs around for longer and sells for less.”