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Over-valuations remain a factor behind why asking prices haven’t fallen further yet, agents suggest.
The latest Rightmove House Price Index for July showed average asking prices have dropped by 0.2% on a monthly basis to £371,907, as new sellers temper their price expectations in response to recent interest rate rises and buyer affordability constraints.
Speaking on the latest Agents MVMT Pass the Syrup podcast, host Ben Madden of Fine & Country Turnham Green Terrace suggested the mainstream media’s obsession with house prices latches onto this data and feeds into declining market sentiment.
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But Henry Carver, director of Carver Residential, said rather than focusing on the media, people are looking at what is going on around them and some sellers are believing their properties are worth the same.
Meanwhile, Carver said prices of other homes are coming down, which is giving buyers the upper hand as they think there is something wrong with the property or the seller is in a rush.
Madden asked why asking prices aren’t lower if people are worried about what is going on around them.
Carver suggested some agents are still overvaluing, which is keeping prices high.
He said: “It is agents fighting for stock and not wanting to give the best advice.
“I called two people yesterday whose house wasn’t worth anywhere near what the agent said.
“We are going up against agents doing their best to win business, which usually starts unfortunately with filling the homeowner with a lot of crap.”
Fellow guest Alice Bullard of Nested suggested corporate structures are to blame for over-valuations.
She said: “It isn’t the fault of the agent but all the pressure in corporates in on listings and getting stock, now how happy are your customers.”
Bullard said the corporate strategy of getting a listing and then just reducing the price later if there are issues isn’t helpful to the market.
She said agents should have “honest conversations” with vendors about market conditions.
Having just come out of silly market, during covid (who knew!) , it is hard for estate agents to break the news to a seller, that prices are falling, especially when another agent has over valued. We assume the agent is ware the market is falling! Managing seller's expectations is a real skill and will sort out the good and bad agents. Mainly Purplebricks (are they still gong?) take money up front, so no commission earned, if the agent overvalues and doesn't sell! 40 years in the business and I've seen it all before.
There is a correction happening, we are back to 2021 pricing. However, how on earth are valuers with less than 6 months agency experience allowed to put their 2 pence worth on the value of someone's biggest asset? It's madness. Branch targets mean over valuing to win business, its happening more than ever.
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Having just come out of silly market, during covid (who knew!) , it is hard for estate agents to break the news to a seller, that prices are falling, especially when another agent has over valued. We assume the agent is ware the market is falling! Managing seller's expectations is a real skill and will sort out the good and bad agents. Mainly Purplebricks (are they still gong?) take money up front, so no commission earned, if the agent overvalues and doesn't sell! 40 years in the business and I've seen it all before.
There is a correction happening, we are back to 2021 pricing. However, how on earth are valuers with less than 6 months agency experience allowed to put their 2 pence worth on the value of someone's biggest asset? It's madness. Branch targets mean over valuing to win business, its happening more than ever.
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