Estate agent warns anyone selling their home not to cut asking price

Homeowners are slashing their property prices within one month of putting their homes on the market, new research shows.

Sellers are desperate to attract buyers as the cost of living crisis contrinues to grip the nation. Estate agents, though, have warned a price reduction isn’t enough to sway buyers at present. 

While the prices of 6,215 homes put on the market in the past month have been reduced already, only 5.7% of all homes put in the market in this period are under offer or sold subject to contract. 

Chris Hodgkinson, Managing Director of estate agents House Buyer Bureau, said: “As our research shows, many sellers may still be acting with a degree of over optimism when entering the market and this is forcing them to have an almost immediate rethink where their asking price expectations are concerned.

“At the same time, it’s likely that widespread reports of declining house prices may have spurred many to lower their asking price in an attempt to secure a buyer before prices fall any further. But when looking at buyer demand for these reduced price homes, it’s clear that a reduction in asking price alone is not enough to boost interest and manufacture a quick sale.” 

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The East of England has seen the largest level of home sellers opt to reduce their asking price, with one in 10 (10.1%) homes listed in the last 30 days seeing a house price reduction.

The South East (9.8%) and London (8.8%) are also home to some of the largest levels of properties reducing their price within a month of entering the market, followed by the East Midlands (6.5%). South West (5.9%) and West Midlands (5.7%). 

In terms of buyer demand for discounted property, the East Midlands sits top, with 8.1% of all price reduced homes listed within the last 30 days already sold subject to contract or under offer. 

House Buyer Bureau says the property market has been cooling for some months after the fade of the pandemic market boom.

Mr Hodgkinson continued: “The best course of action is always to price appropriately and in line with current market conditions when first entering the market. If your home is still struggling to sell, slashing your asking price probably isn’t going to be the answer. 

“In fact, while the market is cooling, it’s still holding firm, and we don’t expect to see any drastic correction where house prices are concerned. So for those currently considering an asking price reduction, a little patience could see you far better off in the long term.”

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