Sellers ‘are overvaluing their homes by £74,000’

HOMEOWNERS are overvaluing their properties by an average of £74,000, forcing buyers to barter prices down, a study has revealed.

It found Britons are refusing to admit the market is cooling and mistakenly believe they are sitting on a goldmine.

Researchers analysed data from the Office for National Statistics, Land Registry, Halifax and Nationwide and compared it to asking prices on the UK’s largest property website Rightmove.

While average prices are about £ 207,000, advertised asking prices are typically £ 74,000 higher at £281,000.

Last year, house prices rose by 8 per cent, according to Halifax, peaking at 10 per cent over the summer. But forecasts suggest this year prices will grow at a fraction of this rate.

The study said a recent fall in activity in the housing market had also prompted some estate agents to over-value properties in a bid to secure custom from a depleted number of sellers.

However, they do so in the knowledge the price must later be knocked down significantly before it sells.

Russell Quirk, of online estate agent eMoov.co.uk, said: ‘Unfortunately it’s a commonplace practice in the high street sector.

‘But it is, in part, down to the seller. If someone has it in their head they should achieve x amount, they will list at this regard- less of what advice they receive.’ A survey of 2,000 sellers carried out by eMoov found more than half would list their property at a price recommended by an agent.

But over a third said they would list at a higher price, while only one in 20 said they would go lower than the recommendation.

A third of sellers said getting the highest price was the most important factor, while a quarter said their priority was securing a buyer with stable finances.

Andrew Montlake, of mortgage brokers Coreco Partners, said: ‘The difficulty is trying to get vendors to put their home on the market for a realistic price to get buyers through the door.

‘Once they have interest in their property, they may find the price is pushed up if buyers enter into a bidding war.’