Home sellers cut asking prices on 3,000 properties a day

Cutting the asking price means reducing the advertised amount a seller wants for a home. It changes the property’s public price, but does not guarantee that the seller will accept an offer at that level. Sellers commonly do this when interest is weak or the original valuation appears too high.

The article gives a typical reduction of nearly 7%, equal to almost £21,000 on a typical home. A lower price can make the property more visible to buyers searching within a particular budget. It may also make the home appear more competitive against similar properties nearby.

However, a reduction can create doubts. Buyers may wonder why the home has not sold, even when nothing is wrong with it. Rightmove said reduced-price homes typically took 119 days to find a buyer, compared with 39 days for homes listed at one price.

Price cuts were widespread across Britain in September. Rightmove recorded reductions on more than 3,000 properties per day on average. It said this was the highest total for any month in 15 years, showing that sellers were frequently adjusting their expectations.

The typical reduction was nearly 7%. Rightmove said that amounted to almost £21,000 being removed from the asking price of a typically valued home. The share of listed homes that eventually received a cut was 34% in the latest month, close to the recent peak of 36% in September 2023.

The figures point to a market where sellers faced strong competition for cautious buyers. There were 5% more homes for sale than a year earlier, but sales agreed were down 9%. September also often brings more reductions because sellers want to complete transactions before year-end.

Prices were being reduced because supply had grown faster than demand. The article describes a glut of homes, with some sellers also starting from unrealistic expectations. Buyers therefore had more choice and could compare properties carefully instead of rushing to make offers.

Mortgage rates had risen to three-year highs, making monthly payments harder to keep affordable. Zoopla said buyers were cautious and selective about which homes they viewed. In September, the number of homes for sale was 5% higher than a year earlier, while sales agreed fell by 9%.

Timing also mattered. September usually has the most asking-price cuts because sellers often want to complete a sale by the end of the year. Homes returning to the market added pressure: one quarter of September’s new listings had been listed during the previous year, and six in ten of those returned at lower prices.

A price reduction did not automatically make a property sell quickly. Rightmove found that homes receiving a cut typically took 119 days to find a buyer. Homes listed at one price typically took only 39 days. The comparison suggests that reductions often followed a period of weak interest.

Zoopla found that properties needing a reduction were half as likely to find a buyer within the normal three-month timeframe. Once a home has been online for months, buyers may question why it remains unsold. A cut can therefore attract attention while also creating suspicion.

Getting the first price right matters because a new listing has its greatest chance to capture active buyers. Agents warned that correcting the price later could lead sellers to accept less than even the revised asking price. In a market with many choices, buyers focus on what fits their budget.

Mortgage rates affect the monthly cost of borrowing for a home. When rates rise, buyers need more of their budget to cover mortgage payments. Zoopla said rates were at a three-year high, so buyers needed to keep those payments affordable.

This limits what many buyers can offer, even if they like a property. Buyers become more cautious and selective about which homes they view. They compare more properties within a fixed budget, rather than simply accepting a seller’s initial price. Sellers may then need to reduce prices to match what buyers can finance.

The article links this pressure with weaker market activity. Homes for sale increased 5% in September compared with a year earlier, but sales agreed fell 9%. The result was greater competition among sellers. Properties priced above buyers’ budgets could remain listed longer, encouraging later reductions and potentially lower final offers.

Homes in Scotland appeared to sell faster partly because of the Home Report system. It requires an independent valuation before a property is put on the market. Zoopla’s Richard Donnell said this gives sellers a guide to pricing, helping them set an asking price before listing.

The difference was substantial. Of homes listed in Scotland during April, May and June, 74% sold within three months. In London, the comparable figure was 30%. The article presents the valuation system as one reason Scotland had a faster sales rate than elsewhere in Britain.

Other conditions also affected southern England. Higher prices, stamp duty and some people, including landlords, not needing to sell made listed homes less likely to find buyers there. These factors combined with higher borrowing costs and cautious buyers, making accurate pricing and affordability especially important.

An asking price is a seller’s starting point, while an agreed sale reflects what a buyer is prepared and able to pay. Buyers’ budgets depend partly on monthly mortgage payments. When mortgage rates rise, those payments become harder to afford, so buyers may offer less or reject more expensive homes.

The article describes buyers as being in the driving seat. They can compare a larger supply of homes and choose properties that fit their budgets. In September, homes for sale rose 5% from a year earlier, but sales agreed fell 9%. That combination put pressure on asking prices.

Sellers who start too high may receive little interest and later cut their price. Rightmove recorded reductions averaging nearly 7%, while Zoopla said reduced properties were much slower to sell. Prices therefore reflect the balance between sellers’ expectations, available homes, agreed deals and buyers’ borrowing costs.