ZOOPLA RESEARCH REVEALS THE IMPACT OF OVER-VALUING – AND AREAS WHERE THE PRICE IS RIGHT
16th September 2019
ZOOPLA RESEARCH REVEALS THE IMPACT OF OVER-VALUING –
AND AREAS WHERE THE PRICE IS RIGHT
Homes priced in line with realistic market values in England and Wales sell 58 days faster than their overpriced equivalents
Homes that have been overpriced sell for £12,000 less than their asking price on average
Homes in Salford, Driffield and Dronfield all sold at 100% of their asking price
Waltham Forest achieved the highest percentage of asking price in London at 97.9%
Latest research from Zoopla, the owner of multiple leading property-related websites, software and databases, reveals that homes that were brought to market overpriced sell for £12,000 less than their listing price on average, across England and Wales. Evidence also suggests a propensity to overprice higher value homes in Southern England and the Midlands in particular.
The research shows that over-valued properties can remain on the market up to 58 days longer than their accurately valued counterparts. In the Capital, overpriced homes took an average of 60 days longer to sell than those which were keenly priced.
In its analysis, Zoopla compared the difference between the listing and sales price of properties that were not discounted (fairly priced) and those that were discounted (overpriced). The insights highlight the importance of accurate pricing and the potential repercussions of valuing properties aggressively – either to win instructions or test the market.
Zoopla research also pinpoints the towns where homes are selling closest to asking price, which is where accurate pricing prevails. Indications are that homes in Salford, Driffield and Dronfield, on average, each achieved 100% of the initial asking price. The findings suggest that agents based in these towns are particularly skilled in managing sellers’ expectations and assessing the state of the local market, helping their clients achieve a sales price which, on average, aligned precisely with the asking price.
The success of sellers in these towns compares to the English and Welsh average of homes achieving 96.3% of asking price.
By analysing the price that properties were initially listed at and cross-referencing them with sold prices from the Land Registry database across 12 months, Zoopla has also established that the city of Sheffield, South Yorkshire, is next in the list of areas where homes are sold closest to asking price. Homes in the city achieved 99.6% of the price they were first listed for.
In London, homes achieved an average of 94.6% of asking price, with the London borough of Waltham Forest performing the best; homes there sold on average at 97.9% of the initial asking price.
Charlie Bryant, Managing Director of Zoopla, comments: “Our research highlights the importance of accurate pricing and reveals the areas where there is the healthiest alignment between a seller’s expectations and what a buyer is willing to pay for a property. When a home is valued too ambitiously at the start, or simply overpriced, the sales process can be derailed. Homes can languish on the market for much longer than they should and the vendor loses control of the sale, often leading to price reductions.
“Agents in Salford, Driffield and Dronfield stood out in our report in aligning their vendor expectations with the realities of the market, and what a potential buyer is willing to pay for that particular house, in that particular location. The English and Welsh average sold price, which amounts to 96.3% of the asking price, indicates a market realism, and moreover a market that is transacting good values, despite wider macro-economic and political concerns.”
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The Zoopla Limited property division includes some of the UK's leading property portal, software, marketing and data insights brands that help property professionals market their properties, promote their brand, make informed decisions and manage their business efficiently. Our websites and apps attract over 50 million visits per month and over 25,000 business partners use our range of services.
Zoopla is the UK's most comprehensive property portal, helping consumers research the market and find their next home by combining hundreds of thousands of property listings with market data and local information.
PrimeLocation is one of the UK's leading property websites, helping house-hunters in the middle / upper tiers of the market to find their dream home from the top estate and letting agents and property developers.
SmartNewHomes is the UK's leading website dedicated exclusively to new builds, helping buyers understand the market and search for new build homes from all the leading property developers across the country.
Hometrack and Calcasa are leading providers of automated property valuations and statistical property market insights in the UK and the Netherlands to partners including mortgage lenders, developers, investors, government agencies, housing associations and others.
Alto, Jupix and Expert Agent are some of the leading cloud-based estate agency and property management software systems used by thousands of property professionals across the UK for the day-to-day management of inventory, marketing and communications.
PropertyFile is an innovative tool used by estate agents to improve communication and efficiency with their customers and to allow them to generate additional revenue streams via referrals.
TechnicWeb specialises in designing, developing, hosting and operating fully-responsive websites for the property sector.
Ravensworth is a leading provider of print and design solutions to estate agencies and developers, offering a comprehensive range of products and services for every stage of the property marketing journey from listing through to post-sale.
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