The Dangers of Over-Pricing Properties

All sellers want to get the most they can out of selling their properties. However, there are some issues associated with listing your home for too high of a price.
Over-priced properties in Wales can stagnate on the market for up to 66 days longer than homes which have been given a more realistic price tag from the outset, research suggests.

Zoopla used its own listing data and final sale prices across England and Wales from the Land Registry to make the findings.

Homes were considered over-priced where their original asking price had been reduced at least once – and the average time to sell was compared with homes where sellers had not needed to chop down their asking price.

Across England and Wales, over-priced homes took 77 days to sell on average – 58 days longer than the average of 19 days for accurately priced homes.

In Wales, the difference was 66 days.

Pricing a home accurately from the outset can help to generate an initial flurry of excitement around a property and may result in several buyers putting in competing offers.

But if a property sits on the market for a while because it has initially been priced too highly it can appear “stale”.

Potential buyers may assume a property has been listed for sale for a while because there are problems with it, even if this is not the case.

Laura Howard, a spokeswoman for Zoopla, said: “Our analysis only goes to prove what every good agent already tells us – that pricing your home realistically results in a better chance of a quicker sale.

“Entering the market fresh with a price that’s too high is not just a gamble that might not pay off, it can actually be detrimental to the selling process.”

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