I heard a staggering piece of data the other day which was that 52% of properties that sell in the UK, do not sell with the original appointed agent.
Ultimately, any property in any market will sell dependent on its price and you don’t need an Economics degree to understand that statement. Something I have mentioned on numerous occasions in previous articles is the concept of over-valuing in our industry. This is where an Agent will provide an inflated expectation of what the property will sell for in order to win the instruction. As time goes by and the property doesn’t sell, the Agent then convinces the property owner to reduce the price to a point where, quite frankly it should have been priced in the first place which should lead to the eventual sale. Quite often however the property will sell below what it should have achieved as it has been on the market for an inordinate length of time.
The lesson here is it is imperative that if you are considering selling your property, that you do your own research to determine the approximate price of your home and not be incentivised by the honeyed words of some silver-tongued BS merchant.
In summary, overvaluing is detrimental to the sale of a property and in most cases, will lead to the property selling for significantly less than what it could have achieved if it was put on the market at the correct price in the first place.
With that in mind, let’s have a look at the figures over the last year. Now we can’t attribute the number of withdrawals solely to overvaluing as there are many other reasons why vendors may withdraw from the market, change of personal circumstances being the main one. However, withdrawing from the market based on the lack of a property sale will form part of this percentage.
According to Zoopla data, over the last twelve months there have been a total of 1,477 properties which at one time were on the market but later were withdrawn.
Cross-referencing this with Land Registry data, there were 3,330 property sales in the last twelve months. What this means is that 44.35% of properties which come to market are later withdrawn which is less than the aforementioned 52% but is still significant in its own merit.
It will be interesting to see how this percentage will be impacted over the next couple of months with the level of economic uncertainty from Brexit and its after-effects. If you have any concerns about your property not selling or are considering bringing your property to the market, give me a call, I’d love to help.