Just over a third of all homes that have had their prices reduced have been listed as sold subject to contract (SSTC) reinforcing the importance of pricing correctly, analysis from GetAgent.co.uk reveals.
The agency comparison site analysed market stock levels on Zoopla 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.
PRICE REDUCTION
Across England, an estimated 34% of total for sale stock, excluding homes already marked as sold subject to contract, had seen an asking price reduction since being listed for sale.
This level of asking price reduced for sale stock remains fairly consistent across the market, with the East Midlands home to the highest level at 37% while the North West is home to the lowest level at 31%.
Of all the homes listed for sale to have seen an asking price reduction across the market in England, just 36% had also found a buyer and been marked as sold subject to contract.
Colby Short, Co-founder and Chief Executive of GetAgent.co.uk, says: “It has always been clear from data that pricing a property inappropriately makes a successful sale far, far less likely.
LESS APPEALING
“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.”
He adds: “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.”
More than eight out of 10 (83%) estate agents are proud of their profession although over half (61%) could be tempted to work in another country, latest research from GetAgent.co.uk finds.
Estate agents have suffered a bad rep in recent years, from being labelled as some of the least trustworthy to calls for regulatory introductions to raise the standards of the industry.
WRONG IMPRESSION
However, GetAgent.co.uk’s survey of 1,728 estate agents found that seven out of 10 (69%) believe the nation has the wrong impression of estate agents and 83% of those surveyed stated that they were proud to be an estate agent.
The strong earnings potential ranked as the number one reason for this professional pride but beyond the financial stability the job can provide, the ability to help homebuyers and sellers also ranked amongst the biggest reasons.
Helping people realise their dreams of homeownership ranked second, closely followed by the ability to help people sell the most expensive asset they are ever likely to own.
UNSUNG HEROES
Colby Short, Co-founder and Chief Executive of GetAgent.co.uk, says: “Estate agents are one of the unsung heroes of all professions in this country.
“Selling a home is a stressful and emotional event for homeowners, often made worse by the stress of the reason for the sale such as a growing family, relocating for a new job or even divorce.
“A good estate agent shields a seller from many of the most stressful parts of the selling process, not only achieving a great result financially but reducing some of the emotional burden on the seller.”
He adds: “The challenge is that the easier a great estate agent makes things look, the more sellers feel they didn’t earn the money.
“It’s time Joe Public started giving agents the respect they deserve before we start to lose some of our brightest and best to other markets.”
Most agents believe the recent Budget was a wasted opportunity, and the Government doesn’t know how to help the property industry.
Findings from two major surveys reveal the discontent among estate agents with Chancellor Jeremy Hunt (main picture) and other ministers responsible for housing policy.
Inadequate
A poll of 833 property professionals, commissioned by GetAgent, found that the vast majority were disappointed with the lacklustre Budget.
More than a quarter (27%) described the Budget as ‘inadequate’, and a further 54% said it was ‘underwhelming’.
The industry had been expecting an announcement on a 99% mortgage, but this was scrapped just days before, a decision that 56% agreed with.
Stamp Duty
There had been hopes of another Stamp Duty reduction, and 71% believe this should have been included by the government.
Two thirds (67%) said there should have been a buyer incentive introduced to help kick-start the market, with 64% stating they would have liked to have seen more focus on housing supply.
And a massive 83% think more should have been done to improve the homebuying and selling process.
The Tory party may as well have ignored the property market altogether.”
Colby Short, Co-founder and CEO, GetAgent
Colby Short, Co-founder and CEO of comparison platform GetAgent, says: “During what is likely their last budget for years to come, the Tory party may as well have ignored the property market altogether.
“Despite predictions, or maybe hopes, that there may have been stimulii for the property market, none were forthcoming.”
Meanwhile, in a snap poll of 160 letting agents carried out by tenant referencing firm Goodlord, 75% of respondents said they didn’t think the Government understood the pressure facing the sector.
And a further 19% weren’t sure, with just 6% saying they thought the Government truly understood.
More than half of UK estate agents feel upbeat about the prospects for the rest of the year with the majority believing the property market will continue to stand firm.
Research from GetAgent.co.uk reveals 55% of estate agents are confident about the market in 2024 albeit an appropriate approach to pricing remains imperative to success.
These figures are alsso bolstered by Propermark’s monthly snapshot, which reveals the number of market appraisals increasing 129% and an 89% jump in the number of homes coming to market, although these figures for January are often high after the Christmas shutdown.
HOUSE PRICES
Nevertheless, GetAgent says four out of 10 agents believe house prices will remains resilient during 2024 with nearly a third (29%) anticipating an increase.
Almost a fifth have seen an increase in the number of new seller enquiries so far in 2024 when compared to this time last year while four out of 10 (39%) stated they were as busy as this time last year.
Similarly, 15% have seen an annual increase in the level of for sale stock they are holding while 40% are as busy as last year in this respect.
Some 15% have also seen a year-on-year increase in the number of buyers making offers so far in 2024, with 35% again stating that buyer activity is at a similar level to last year.
But it appears buyers are still spooked with higher borrowing costs with just one in 10 agents reporting them submitting offers at above asking price in the current market and six out of 10 buyers making offers at below asking price.
DOWN VALUATIONS
Three out of 10 (30%) estate agents also reported an increase in down valuations with a similar amount (36%) seeing an increase in fall throughs.
Colby Short, GetAgent
Colby Short, Co-founder and Chief Executive of GetAgent.co.uk, says: “Our own numbers reflect the feedback from agents around increased market activity with a record breaking number of vendors referred in the first two months of the year.
“As always, it is important for us all to see the increased stock moving through the funnel and transactions completing.
“With inflation seemingly under control and the Bank of England hopefully reducing the base rate soon, all signs are pointing to a much better year for the property market.”