Asking price cuts fail to win sales for two-third of ...

Some 36% of all homes which have had asking prices cut this year are now listed as sold subject to contract.

GetAgent analysed current market stock levels looking at both the total proportion of homes for sale that have seen a price reduction in the current market, as well as the proportion of those price reduced homes that have actually attracted a buyer.

In total 34% of ‘for sale’ stock, excluding homes already marked as sold subject to contract, have seen an asking price reduction since being listed for sale.

Regional variations range from the East Midlands at 37% to the North West is home to the lowest level at 31%.

But it appears that while an asking price reduction may be a common tactic it doesn’t necessarily secure a sale.

Of all the homes listed for sale twith an asking price reduction, just 36% had also found a buyer and been marked as sold subject to contract.

The South West was home to a slightly higher percentage, with 40% of all homes to have reduced in price finding a buyer, while in London, this proportion dropped to just 30%.

The analysis was by GetAgent and a spokesperson says: “It has always been clear from data that pricing a property inappropriately makes a successful sale far, far less likely.

“For a buyer, seeing a price come down makes the property seem less appealing and often leads to a lower selling price than if the property had been priced appropriately from the start. For a seller, these unrealistic expectations often mean disappointment with a result that may still represent a job very well done by the estate agent.

“Unfortunately for agents and for the vendors, vendors mainly select agents based on the valuation provided or the fee charged which often leads to overvaluing of properties and ends up helping nobody. Using performance data to prove an agent’s superior quality allows the agent to build trust from the outset, price the property accordingly and charge a fair fee for the job done.”