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.
LRG Research: Asking Prices Outweigh Interest Rates in Home Sales
New research from Leaders Romans Group (LRG) indicates that setting the right asking price is more important than interest rates when it comes to selling homes quickly in the UK property market. The findings come as the Bank of England has decided to leave interest rates unchanged, a move that may reassure buyers and sellers.
According to LRG’s report, homes that are priced correctly from the outset typically secure a buyer in 36 days. In contrast, properties that start with a higher asking price and are later reduced take an average of 127 days to sell, which is more than three times longer.
The research also highlights buyer concerns, with 56% of buyers saying that overpricing is the main reason they do not make an offer. Other significant deterrents include major work needed (42%) and damp or structural problems (35%).
LRG’s data shows that more than a third of sellers (35%) found that getting the price right from day one was more important than they had initially expected. Additionally, 77% of sellers based their asking price on an agent’s valuation.
Zoopla data cited by LRG reveals that 44% of homes listed in the past three years failed to sell, and a third of those sellers admitted to pricing their properties too ambitiously.
Neil Louth, Group Executive Director of LRG and CEO of The Acorn Group, noted that buyers are quick to check comparable sold prices and that homes launched at the right figure attract viewings in the first two weeks, when interest is highest. Louth also commented that the Bank of England’s decision to keep rates steady should help support market confidence.
For letting agents and inventory clerks, these findings underline the importance of accurate property valuations and realistic pricing strategies to ensure quicker transactions and reduce the risk of prolonged void periods.
Source: The Negotiator