On average, estate agents in the Colchester area tend to overprice their properties by 5-10%. This is a minefield for the potential buyer!
I take extra care to correctly price properties for our vendors and fully explain our "triangulated" calculations. Without this approach, it would be impossible to consistently achieve over 100% of the asking price.
Meanwhile, the difference between the asking price and transaction price of most properties is widening. Not because property prices are going down, but because most estates agents overprice to gain the listing. And once they have the listing, they reduce the selling price.
In the whole Colchester area, it's not uncommon for estate agents to reduce prices on 25-40% of all their listings. The typical price reduction is just above 5%, but some agents have price reductions of 10% or more.
Overpricing and successive price reductions are not the recommended way to achieve the best selling price as you may wish to check with our recent "cases".
However, given the situation, it is a great opportunity for buyers to negotiate a much better price.
But you need the right guidance...
Here's how I can help
Buying a house can often lead to irrational decisions, so it's advisable to seek the help of a neutral friend.
But I'm more than a friend. I'm a property and valuation expert with over 25 years experience in "squeezing" trading professionals on derivative products. And I'm confident in negotiating with other estate agents and vendors.
- I'm happy to help registered buyers understand property prices for the whole Colchester area (CO postcodes), and will provide one full detailed data analysis free of charge.
- On request, I'll accompany you - as a "neutral friend" - on your second or third viewing.
- For an additional fee I'll help you negotiate a more favourable purchase price. You give me a maximum target buying price and I will seek to extract a better deal charging you a % over what you achieve between the agreed price and our agreed maximum buying price.
Please Note: This service is free and available for our vendors wishing an extra personal support.
Why using a buying agent?
- We act solely in your best interest, estate agents usually only act in the sole best interest of the vendors.
- We may accompany you on viewings or even view properties on your behalf taking the time and stress away from you. It is about helping you and guiding you according to your needs and desires.
- We offer you skilled valuations and skilled negotiations once you have your eyes on your next home
- Independent advice on choosing the right solicitor, the right mortgage advisor or the right surveyors. We do not receive any kickbacks, incentives or fees for referring external professionals. Our opinion is purely based on experience and knowledge that they will be right for you.
- Support throughout the progression process to completion. If you wish we may act on your behalf for dealing with solicitors and estate agents on the chain, we will keep you informed and get you moving efficiently and stress free to your next home.
- Many of our home sellers have already received our help for free when it came to buying their next home through another estate agent. We have made a considerable difference to their final purchase price and the peace of mind that they paid the right price
Why is it a minefield?
How do you know that the price of a property advertised is the right one when most estate agents will overprice most of the time and will only sell when price reducing most of their properties?
Let's take the CO13 postcode in and around Frinton-on-sea and let me show the data from Getagent.co.uk over the last recorded data from the last 6 months. I have hidden the names of the other agents but they are all based in Frinton-on-sea.
You may see a huge difference between the original asking price and the final completed price! By definition this only with completed properties and many properties are so overpriced and badly marketed that they won't sell unless they find someone gullible enough to buy them at the price advertised.
Let me share with you the data from Rightmove for the same agents in Frinton-on-sea over the last 12 months regarding their average price reductions:
You may check from our performance page
that our home sellers achieve on average 100% of the original asking price, 90% of our home sellers will actually sell between 97% and 106% of the original asking price, this matches with the price reduction data above.
Typically properties with other agents will only achieve, let's say 95% of the original asking price with 25% of them having been reduced by 6% or more.
As a buyer, does it give you confidence that you are paying the right price? What is the right price?
We know how to help you! We do know for a fact that, on average, overpricing a property is likely to achieve a final selling price lower than the optimum price, had the marketing started at the right price to start with! You may check this with our latest cases. What does it mean for buyers? It means that with the right help and advice, buying a property advertised by agents incapable of pricing and marketing it correctly may save you maybe 3% off the optimum selling price ( had they used a better agent).
Lastly do you think that an agent incapable of pricing and marketing a property properly will somehow be a skilled negotiator doing his very best for his vendors?
No they will want to close that sale and earn their fee!
Talking of fees, what is the incentive for a normal estate agent to extract another £5,000 from a buyer when they charge a typical 1%...? Well exactly £50
Do you think that the typical estate agent incapable of pricing and marketing a property will have the skills or the desire to earn another £50?
If we can help you save off 5% or more of the current asking price, is it worth it?