From fewer buyers seeing your home to higher estate agency fees, here's why overpricing your home could end up costing you more time, money and stress
Asking for more for your home might seem like a smart move in a strong market, but experts are warning that overpricing could be one of the fastest ways to stall your sale.
According to the latest data from Rightmove, the average asking price for a home in the UK has hit a new record of £377,182, up by 1.4 per cent this month – the first price record since May 2024.
However, an asking price does not always equate to the price a home is actually sold at.
And while confidence is high among sellers, the surge in listings means there’s also more competition, and an inflated asking price could put buyers off completely.
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Colleen Babcock, property expert at Rightmove, said the high level of supply in the market right now means that buyers are likely to have plenty of homes in their area to choose from, and an overpriced home will “stick out for the wrong reasons”.
She said: “Our research also shows that getting the price right the first time is key.
“Homes that don’t need a reduction in price are more likely to find a buyer, and to find that buyer in less than half the time.”
Here, The i Paper explains why setting a realistic asking price from the outset is crucial – and how overpricing your home could end up costing you more time, money and stress.
More homes and more choice for buyers
There is currently more property available than at any other point in the past 10 years for this time of year.
While this is a positive sign for market resilience, Rightmove also reported a 5 per cent increase in buyer demand and 4 per cent more sellers coming to market compared to last year – it also means buyers are spoiled for choice.
That is why experts are urging sellers not to get carried away by rising averages.
Babcock said: “Confidence from sellers is a good sign for the overall health of the market, but they do need to be careful when setting their asking price.”
Impact on sellers borrowing capacity
Lisa Parker, senior marketing assistant at L&C Mortgages, said: “First impressions are crucial in the property market, and with buyers looking for the best deal they can get on a property, setting a realistic price tag is key to a successful and timely sale.
“Overpricing can easily deter potential buyers, and as a result these properties often take considerably longer to sell. There’s also the risk of down valuation from a surveyor, which could in itself lead to delays and even impact an onward purchase if sellers are part of a chain.”
She added for a buyer taking out a mortgage, higher prices mean they might need to put down a larger deposit, increase their borrowing costs, or both.
Depending on the level of deposit a borrower has, it can also affect their loan-to-value and the interest rate they are able to achieve with their lender.
“Ultimately paying more than they’ve budgeted for is likely to push buyers towards a more affordable property,” said Parker.
Overpriced homes can linger on the market
The affect of overpricing is immediate and often long-lasting.
Research from GetAgent.co.uk found that only 36 per cent of homes that have undergone a price reduction end up marked as “sold subject to contract”.
Meanwhile, around 34 per cent of all current listings have already had their prices reduced since first going on the market.
According to Zoopla, overpriced homes can take up to 10 weeks longer to sell than those listed at a realistic price. Homes priced correctly tend to go under offer within four to five weeks.
John Simmons, director of Miller Town & Country, warned: “When it comes to selling your property, pricing it correctly is crucial for a successful and timely sale.
“Inflated pricing may attract fewer enquiries, resulting in a stagnant listing that deters future buyers.”
The psychological impact on buyers
It is not just about numbers – it is about perception. A home that lingers on the market begins to raise eyebrows, experts said.
Buyers may start to wonder what is wrong with it or assume the seller is desperate, leading them to submit lower offers. This can start a vicious cycle of price cuts that confirms their initial doubts.
Emma Fildes, property adviser at Brick Weaver, said: “Sellers’ ego or need will backfire if their property price is over-egged this Easter.
“Some estate agency’s valuers are target driven on new listings, – they don’t care if they have to reduce the property value in two weeks, but if it’s your home on the line, you should.
“Buyers can track property reductions and will take their own view on the desperation of a seller as time passes, which will prove costly to sellers and prolong any hopes of agreeing a sale in a timely fashion.”
The chain reaction of consequences
The downsides of overpricing do not end with time on the market.
Even if a buyer does make an offer, there is a risk the property won’t meet the valuation for a mortgage, potentially causing the deal to collapse.
Meanwhile, if you are relying on selling to fund your next move, delays could means losing out on your onward purchase or seeing mortgage offers expire.
Zoopla also pointed out the financial implications: “You may end up paying double estate agency fees if you switch agents in frustration.
“Some agents include clauses in contracts enlisting them to commission, even if they don’t broker the final sale.”
Higher prices are dependent on the location
Sellers have taken news of rising house prices and applied it to their own home valuation, Fildes, of Brick Weaver, said.
She explained: “What these sellers don’t appreciate is higher prices are dependent on the property and its location.
“Growth across the UK isn’t equal. The North and the Midlands have clawed back more lost ground post-pandemic whereas southern regions where prices are higher are still struggling to attract buyers.
“The Trump tariff impact may have accelerated UK rate cuts, which will help affordability but increases in stamp duty post-holiday, especially for first-time buyers, means their first home remains out of reach.”
Price it right from the start
While it may be tempting to “test the market” with a higher price, the data suggests this strategy is risky and could backfire.
Instead, pricing in line with current market conditions and comparable properties gives your home the best chance of attracting serious interest and securing a swift sale.
Property expert Jonathan Rolande said: “The best time to sell is within the first two to three weeks, so much longer than that and there is indeed a perception issue.
“Reducing can be effective but it can indicate an owner chasing the market down which is never good.
“High prices mean higher mortgages and the need for a larger deposit requirement. This is why we’re seeing longer loan terms to spread payments at small amounts.”
9 good reasons not to overprice your home
Here are nine reasonsnotto overprice your home based on Zoopla’s data, a bit of industry know-how and a good dose of common sense.
- Your property could take longer to sell
- Fewer buyers will see your home
- Buyers can be suspicious
- You can store up problems further down the line
- You can waste your chance of a first impression
- You risk alienating the estate agent
- The market may change
- You run the risk of losing the home you want to buy
- You may be hit with higher estate agency fees
