Estate agents are being accused of setting asking prices above what buyers are currently prepared to pay, widening the gap between listed values and agreed sale prices.
The issue is emerging during a period of ongoing market adjustment, where affordability constraints and higher mortgage costs are limiting what buyers can offer, even where underlying demand remains in place.
According to internal data analysis from House Buyer Bureau, the mismatch between expectations and achieved values is increasingly feeding through into longer selling times and a higher incidence of price reductions as sellers and agents adjust pricing strategies.
The analysis suggests only two regions – London and the South East England – are currently seeing seller expectations broadly align with estimated market values. In both cases, the gap between asking levels and wider market pricing is comparatively narrow.
House Buyer Bureau compared seller-stated property prices from homes entering the quick sale market with estimated average market values across England.
In London, sellers were found to be pricing at an average of £447,692 compared with an estimated wider market value of £560,889, a difference of -£113,197. In the South East, seller expectations were slightly below market value, with a gap of -£6,977.
Outside these regions, the data indicates that seller pricing is generally above estimated market levels.
The largest differences were recorded in the South West England (+£45,086), followed by Yorkshire and the Humber (+£33,459), the North West England (+£26,632) and the East Midlands (+£26,262).
The findings point to continued regional variation in pricing behaviour, with some sellers still setting expectations above achievable sale levels, contributing to friction in parts of the market, according to House Buyer Bureau managing director Chris Hodgkinson.
He commented: “One of the biggest challenges in the current market is that pricing behaviour is being shaped very differently depending on where you are in the country.
“In London and the South East, where values had already climbed to very elevated levels, sellers have been among the hardest hit by the shift in market conditions. As a result, many are reacting decisively, often shaving significant value off their expectations in order to secure a sale, sometimes more than is strictly necessary.
“Elsewhere across the country, however, the picture is very different. In many regions, sellers are still coming to market with expectations that sit above where buyers are willing to transact, which is creating a clear disconnect between pricing and demand.
“In both cases, the outcome is the same. When pricing isn’t aligned with market reality, it reduces buyer interest, slows negotiations, and increases the likelihood of delays or a failed sale.
“For many sellers, this only becomes clear after weeks or months on the market, by which point they’ve already lost valuable time and, in some cases, money.
“That’s why we’re continuing to see a growing number of sellers opt for quicker, more certain routes to sale, particularly those who either need to move quickly or have already experienced the frustration of a sale that hasn’t gone to plan.”
Read the orginal article: https://propertyindustryeye.com/estate-agents-accused-of-pricing-above-market-expectations/?utm_source=rss&utm_medium=rss&utm_campaign=estate-agents-accused-of-pricing-above-market-expectations
