Property sellers urged to resist asking price cuts

An estate agency firm is urging sellers to resist cutting asking prices.

Tom Cranenburgh, of GetanOffer, which describes itself as a quick sale agency specialist, said sellers should hold their nerve in the current market.

It come amid concerns of a housing market downturn and questions of what agents should be advising their clients.

Leeds-based agent HOP last week told the i newspaper that sellers should be more realistic and consider a 10% asking price reduction due to rising mortgage rates.

But Cranenburgh has hit back, suggesting this would be the wrong move.

He said: “We’ve certainly seen buyer enquiries drop off lately, but I’ve got a feeling this is just temporary. 

“There are still lots of people who’d love to buy a home. If things get more stable soon, big price reductions shouldn’t be needed. 

“There’s a simple reason why some are suggesting doing this and that’s overpricing.

“Some, in fact many agents, have at one time or another been guilty of overpricing property either with the owner’s blessing or worse, to get the property on the books. Many estate agents wrongly think it’s better to get a seller on the market, usually with a fixed term contract, and bring the price down later, than it is to be honest about price and lose the business to someone who isn’t.

“With the possible exception of a handful of sellers who are truly desperate, or who have discovered a defect with the house that necessitates a big drop, sellers chopping 10% off were never going to get their price, whatever the market conditions.”

Jonathan Rolande, the founder of property firm House Buy Fast, agreed, adding: “There’s no doubt the property market is under immense pressure right now and the time of year doesn’t help either, dark afternoons and Christmas are ahead of us. 

“But if your agent is suggesting you knock 10% off the price of your most expensive asset, ask them why. Why, when the market is down less than one percent is this necessary? If they were the agent that suggested the price in the first place, I would suggest you always get a second and third opinion first.”