According to the latest data from Rightmove, the average asking price for a home in the UK has hit a new record of £377,182, up by 1.4 per cent this month – the first price record since May 2024.
And while confidence is high among sellers, the surge in listings means there’s also more competition, and an inflated asking price could put buyers off completely.
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She said: “Our research also shows that getting the price right the first time is key.
Here, The i Paper explains why setting a realistic asking price from the outset is crucial – and how overpricing your home could end up costing you more time, money and stress.
While this is a positive sign for market resilience, Rightmove also reported a 5 per cent increase in buyer demand and 4 per cent more sellers coming to market compared to last year – it also means buyers are spoiled for choice.
Babcock said: “Confidence from sellers is a good sign for the overall health of the market, but they do need to be careful when setting their asking price.”
Impact on sellers borrowing capacity
“Overpricing can easily deter potential buyers, and as a result these properties often take considerably longer to sell. There’s also the risk of down valuation from a surveyor, which could in itself lead to delays and even impact an onward purchase if sellers are part of a chain.”
Depending on the level of deposit a borrower has, it can also affect their loan-to-value and the interest rate they are able to achieve with their lender.
The affect of overpricing is immediate and often long-lasting.
Meanwhile, around 34 per cent of all current listings have already had their prices reduced since first going on the market.
John Simmons, director of Miller Town & Country, warned: “When it comes to selling your property, pricing it correctly is crucial for a successful and timely sale.
The psychological impact on buyers
It is not just about numbers – it is about perception. A home that lingers on the market begins to raise eyebrows, experts said.
Emma Fildes, property adviser at Brick Weaver, said: “Sellers’ ego or need will backfire if their property price is over-egged this Easter.
“Buyers can track property reductions and will take their own view on the desperation of a seller as time passes, which will prove costly to sellers and prolong any hopes of agreeing a sale in a timely fashion.”
Even if a buyer does make an offer, there is a risk the property won’t meet the valuation for a mortgage, potentially causing the deal to collapse.
Zoopla also pointed out the financial implications: “You may end up paying double estate agency fees if you switch agents in frustration.
Higher prices are dependent on the location
Sellers have taken news of rising house prices and applied it to their own home valuation, Fildes, of Brick Weaver, said.
“Growth across the UK isn’t equal. The North and the Midlands have clawed back more lost ground post-pandemic whereas southern regions where prices are higher are still struggling to attract buyers.
Price it right from the start
While it may be tempting to “test the market” with a higher price, the data suggests this strategy is risky and could backfire.
Property expert Jonathan Rolande said: “The best time to sell is within the first two to three weeks, so much longer than that and there is indeed a perception issue.
“High prices mean higher mortgages and the need for a larger deposit requirement. This is why we’re seeing longer loan terms to spread payments at small amounts.”
9 good reasons not to overprice your home
Here are nine reasons not to overprice your home based on Zoopla’s data, a bit of industry know-how and a good dose of common sense.
Your property could take longer to sell Fewer buyers will see your home Buyers can be suspicious You can store up problems further down the line You can waste your chance of a first impression You risk alienating the estate agent The market may change You run the risk of losing the home you want to buy You may be hit with higher estate agency fees Read More Details
Finally We wish PressBee provided you with enough information of ( ‘Stick out for the wrong reasons’: Why overpricing your home could slow your sale )
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