More than 80% of sellers believe their property is worth more than it actually is, according to research conducted by Move with Us among its network of independent estate agents. The reason for this, agreed by 99% of agents, is due to media hype and reports of housing bubbles. The organisation’s research found that many estate agents across the UK haven’t seen a housing bubble this year. The survey also reports that the majority of agents in the North East, North West, Yorkshire and Humber, Wales, East Anglia and the South West have not witnessed any signs of uncontrollable price hikes over the last 12 months.
However, in other regions the verdict is less clear. In Scotland, the East Midlands and the West Midlands, estate agents were split as to whether or not this economic phenomenon exists in their particular area.
Estate agents in Scotland were split 50/50 on the subject of a housing bubble. In the East Midlands, 57% of agents have reported that they have seen a housing bubble with this figure slightly higher in the West Midlands at 58%.
Perhaps unsurprisingly, the only regions where agents were in firm agreement there has been a housing bubble were Greater London and the South East where 92% and 74% of agents reported significant price increases when compared to the same period last year.
“Whilst increased confidence in the property market is really positive news, reports of a housing bubble may be pushing home owners to set unrealistic asking prices. Putting a property on market with an accurate valuation is paramount,” said Robin King, Director at Move with Us.
King advises home owners not to believe the hype and to listen to advice from their local property expert, the estate agent.
“If a property is listed for sale too low, it’ll sell but the vendor will lose money. If it’s priced too highly it will not generate much interest and will probably need a price reduction at a later date. This is precisely why we go to such great lengths to correctly value property using comprehensive data and in-depth comparisons of homes that are both sold and currently being marketed in the local area,” he added.