Overpricing in Bromley & Sevenoaks: Understanding the Real Costs

Tue 17 Oct 2023

Regardless of where in England homeowners are selling their property, they face a critical decision: at what price should I market my home for sale?

At Langford Rae Property Agents, we focus on the BR5, BR6, TN14 and TN16 post code areas but our advice applies to any homeowner who is thinking of selling their property.

It's tempting to start high, spurred by the belief that your property's unique features justify a premium. However, the implications of overpricing and later reducing can be detrimental to achieving the best price.

From June 1st to October 16th (the date we’re publishing this article), a noteworthy trend emerged on Rightmove: out of the 1,112 properties advertised for sale in the BR5, BR6, and TN14 postcodes, 351 have seen their prices slashed in this period. That's almost a third of all listed properties! The average price drop? A significant 6.17%.

Such figures are more than mere statistics. They tell a tale of initial optimism followed by the rude awakening that buyers weren't biting. What's more alarming is the disparity among agencies in this trend. One agent in the mentioned areas slashed prices by a staggering average of 15%, with 28.6% of their stock being reduced. In stark contrast, the most conservative agent only adjusted 1.7% of their listings.

For homeowners considering selling, understanding buyer psychology is crucial. When prospective buyers notice a "price reduced" tag, it's not always perceived positively. Here's why:

1. Perceived Value - Buyers might question why the property hasn't been snapped up already. The reduction can inadvertently suggest there's something amiss, deterring rather than attracting potential buyers.

2. Bargaining Power - A reduced price can shift the power dynamic, giving buyers the confidence to negotiate even more aggressively, believing the seller is desperate.

3. Time on Market - Overpriced properties tend to stay on the market longer. This lag can be off-putting to new buyers who might wonder if there's a hidden issue.

To sidestep these pitfalls, homeowners should get a professional valuation. An accurate valuation ensures your property is priced in line with the current market and comparable properties. Most estate agents have an instant online valuation tool. We do, and its available to use for free here www.langford-rae.co.uk/#/valuation This is often the start point for homeowners thinking they will be selling their home in the not too distant future. The next step is to arrange for trained and experienced agent to visit the property. Online tools with their algorithms simply can’t accurately appraise a property. A professional estate agent will fully understand and be up to date with local property market trends. With the powers of the internet, homeowners can keep up to speed with this information too. If you get in touch with us, we’ll happy share some great sources of reliable information to keep you abreast of how things are changing in your local area. By staying Informed you can keep abreast of market shifts and adjust accordingly, but always avoid knee-jerk reactions.

It is worth noting that each Estate Agency has differing strategies. Knowing which ones consistently over value properties can help you make an informed decision about whom to trust with your property.

The following graph, using information obtained from Rightmove.co.uk on 17th October 2023, shows the volume of properties on the market for sale during the period 1st June 23 to 17th October 23 and how many of these had their marketing price reduced. This graph focuses on properties within BR5, BR6 and TN14 and also excludes estate agents whom have only reduced 1 property’s price within this time period.

Your home, your prized asset, deserves a marketing strategy that aligns with its value. Overpricing, followed by reductions, is not just about numbers; it's about perceptions, buyer psychology, and ultimately, your return on investment.

At Langford Rae Property Agents, we prioritise a tailored approach, ensuring your property is positioned accurately in the market from the outset. With our knowledge and experience within the BR5, BR6, TN14 and TN16 postcodes, we can guide you in achieving the best price for your property in the current market.

Navigating the property market's complexities requires more than just listing your home at a hopeful price. It requires strategy, insight, and a deep understanding of both local and broader market trends. If you're contemplating selling, don't leave it to chance. Engage with experts who understand the nuances and can guide you towards a successful sale. Contact us on 01689 862770 or at www.langford-rae.co.uk to discuss how we can make your property sale both profitable and seamless.