Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Agent Warns Sellers Are Overpricing Homes Amid Changing Market

Thousands of property sellers in the UK are still setting asking prices as if the market were in the pandemic boom, an estate agent has warned. Data from Zoopla shows that 44% of homes listed for sale in Britain have failed to find a buyer in the past three years.

Josh Endacott, an estate agent at London-based 1st Avenue, identified pricing as a key factor in the current slowdown. He stated that many sellers are still pricing their homes based on conditions seen in 2021 and 2022, when buyer demand was at its peak and competition for properties was high.

According to Endacott, the market has shifted, with Rightmove reporting that the number of homes available for sale across Britain is now at its highest level since 2014. This increase in supply has given buyers more negotiating power, making it easier for them to overlook overpriced properties.

Endacott cautioned that thousands of homeowners risk pricing themselves out of the market with unrealistic expectations. He emphasised the importance of the first four weeks of a property listing, noting that this is when buyer interest is at its highest and serious purchasers are actively comparing properties. If a property is overpriced during this period, sellers may lose potential buyers who are unlikely to return.

He also warned of the stigma that can develop around properties that remain unsold for extended periods. Buyers may begin to question why a property has not sold, which can further hinder the chances of a successful sale.

Endacott highlighted that many sellers are basing their asking prices on what they need for their next purchase or on prices achieved by similar properties during the market peak, rather than on current buyer demand. He advised that going to market at the right price from the outset can generate more viewings, more offers, and ultimately a better result than gradually reducing the price over time.

These trends are relevant for letting agents and inventory clerks, as shifts in sales activity and pricing can impact rental demand, property turnover, and market valuations.