Agents have been urged to price realistically as Rightmove revealed data showing the impact of asking price reductions.
Tim Bannister, director of property science for the portal, unveiled research at the Propertymark One conference in Wembley Arena yesterday that he said underlined the importance of sellers and agents being realistic.
The analysis looked at properties coming on to the site between January 2017 and November 2022.
It found that properties are 10% less likely to go under offer if there is a price reduction, while time on the market is more than double where there is a change.
The likelihood of a fall-through is also almost double if there has been a reduction.
The research also showed that properties are 1.5 to two times more likely to be lost to a competitor if there is a reduction.
The analysis also showed that the reduction rate grows if a property doesn’t get an email enquirty in the first week, with 56% of listings usually getting at least one.
Bannister added that all these factors relate to the pricing strategy from day one.
He said the market is facing challenges from higher mortgage rates and inflation but said Rightmove is sticking to its forecast of a 2% decline in house prices this year.
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Perhaps Rightmove should consider the distorting effects of its Asking Price Index which excludes price reductions. Both sellers and unprofessional agents rely on this puff price to justify silly valuations.
Says the guy who is not an agent - joker
Janet - the point he makes is correct - any index used should be reflective of the true situation. We recently valued a property realistically but 2 other agents valued it at £70K more ( the realistic valuation was £230K, other agents were at £270 & £300k). Surprise we didn't get the instruction and surprise the property is now being marketed at £240k. But the Asking Price Index would only include the unrealistic £300k in it's calculations. Asking price needs to include price reductions as reductions means that the initial price was unrealistic and not a figure to be relied on
Rightmove are losing business because of agents leaving due to their high fees. They say 'The research also showed that properties are 1.5 to two times more likely to be lost to a competitor if there is a reduction'. The competitors are agents that have left RM winning business from the remaining RM agents.
Agents are leaving rightmove due to their own ‘low fees’. Being on rightmove whether you like it or not gets you instruction. Competitors that have left rightmove are not winning instruction from them!
In your core area you have 10 properties listed
Well done
LOL
SS
The fact is a valuation is just a matter of opinion
No qualification will stop agents overvaluing to geta property on the market
Nor do I believe that you have never lost an instruction because your valuation was lower than another agents who later sold the house at a higher figure than you suggested
We have all done that
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