Putting your home up for the right price on the first listing doubles your chances of finding a buyer, an extensive new study has found.
Research from Rightmove found that just one third of sellers who listed a property but then had to reduce the asking price found a buyer between the months of May and September.
However, two thirds of those who didn’t have to reduce their asking price at all found a buyer over the same period.
This suggests that sellers looking to take advantage of the currently booming property market by trying to sell their home for more than it's worth may find buyers aren't playing ball.
With a looming unemployment crisis the housing market may be heading for a price correction
The study tracked over 300,000 homes that were first put up for sale between May and July, and tracked up to September.
It also found that homes that don't need to be reduced to sell are on average having an offer accepted 26 days quicker than those that had to have at least one reduction before they get an offer accepted.
A home 'priced right the first time' takes on average takes just 21 days to sell, compared to 47 days for homes whose sellers have had to knock the price down, Rightmove said.
Rightmove’s Tim Bannister said: ‘If sellers are serious about selling, then starting with too high an asking price can cause unnecessary delays, and also make it a lot less likely they will actually find a buyer in the end.
‘The temporary stamp duty holiday means more sellers are in a hurry to get a sale through conveyancing, and with this also taking longer at the minute a realistic asking price could soon end up being the difference between completing in time or losing out on the savings.’
>> If you're a buyer, read the best way to get an offer accepted here.
How many for sale? The number of properties for sale across the UK, according to Halifax
House prices have soared but how long can it last?
Last month the average property price increased by 5.2 per cent annually to reach a record £245,747 according to Halifax, however the celebrations for homeowners might be short lived.
The spike in house price inflation is 'highly unlikely' to continue once the toll of the pandemic on the economy and labour market becomes apparent later this year, the bank warned.
Home buyers are currently taking advantage of a stamp duty break on the first £500,000 of a property purchase until the end of March next year, delivering a maximum saving of £15,000.
This has added fuel to a property market mini-boom, even as the UK fell into its deepest recession on record in the second quarter, with house prices rising to fresh record highs.
But think tank The Centre for Economics and Business Research has also warned that after the house price boom values could plummet, forecasting falls of as much as 14 per cent next year.
It said that despite the recent uptick in prices, property values are set to start falling 'significantly' towards the end of the year.
In its recent fiscal sustainability report, the Office for Budget Responsibility forecast house prices to fall 3.8 per cent in 2021 in a moderate economic scenario, followed by growth of 9.6 per cent in 2022.