New research has revealed just how over-optimistic home sellers are in the current market when it comes to the average asking price of homes across the major portals compared with the average sold price in each area of the market.
The study, undertaken by MoveStreets, the property portal, shows that across Britain, the average asking price across the major portals currently sits at £296,950, while homes are actually selling for £258,464 – a reality gap of 13% or £38,486.
In some areas, this gap is far more pronounced. In London, for example, the average asking price is a whopping £833,994, yet properties are selling at an average of £494,673, a disparity of 41%, claims MoveStreets.
This is ahead of the large gaps found in the South West, South East, and Wales, at 24%, 23% and 21% respectfully.
By contrast, the study suggests that the most realistic vendors are found in Scotland, with a gap of just 4% between asking prices and transaction prices in Scotland.
CEO and Co-Founder of MoveStreets, Adam Kamani, commented: “We’ve seen an incredibly hot market of late and despite the end of the stamp duty holiday, high levels of buyer demand and low levels of available stock continue to see properties fly off the shelf at pace and for a very good price.
“However, it’s clear that even in current conditions, many sellers are listing their homes at an over-optimistic price point, no doubt in an attempt to take advantage of the market boom.
“This can be detrimental to your sale regardless of how the market is performing and can result in months of little to no interest in your home. It’s the responsibility of the listing agent to guide sellers and set these expectations. While some will value a home at a higher price point to win business, a difference of ten to hundreds of thousand pounds above market value is perhaps a little too far.”