Over-pricing by estate agents is undermining public trust in the housing market and should worry the property industry, according to the co-founder of agent brokerage Avocado Property Partner Agents.
With TwentyEA data revealing more than six in 10 homes were marked down during July and August, Ian Macbeth said the findings should act as a wake-up call.
“These figures should worry the industry’, Macbeth warned. ‘If nearly two-thirds of properties need a price reduction, it shows we are getting it wrong too often’.
He added:
“With more than 72% of homes finding buyers this summer, the market is not weak, but trust is being undermined by persistent over-pricing. The pattern is even more concerning when compared with previous years. In the summer of 2024, 54% of homes required a price cut, already a high figure but one that looks modest against this year’s 62%.Rather than improving in their ability to guide sellers to realistic valuations, agents appear to be moving backwards.”
The inflated asking prices and subsequent reductions point to a growing mismatch between how homes are marketed and what buyers are prepared to pay, Macbeth said. And, he added, agents must take responsibility for guiding sellers to realistic valuations.
“Over-pricing delays transactions, damages client confidence, and creates unnecessary turbulence in a market that is otherwise steady. Our own experience shows that when pricing and marketing are handled correctly, far fewer reductions are needed, and far more sales are secured.”
