Sellers are now wildly over-valuing their houses by around £74,000 – forcing buyers to barter them down , analysis shows . A study found that Britons selling their properties refuse to admit the housing market has cooled and mistakenly believe they are sitting on a goldmine . Buyers must now increasingly treat asking prices as a starting point for negotiations as sellers demand silly prices , it is claimed . Sellers are now wildly over-valuing their houses by around £74,000 – forcing buyers to barter them down , analysis shows . While average sale prices are about £207,000 in the UK , advertised asking prices are typically £74,000 higher at £281,000 . Researchers analysed sold price 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 . Online estate agent eMoov said many sellers still believed they were selling at the market ’ s peak and were routinely over-pricing their property , encouraging buyers to put in cheeky offers . A report said : ‘ Previous high demand in many areas caused house prices in England and Wales to soar , with many sellers now looking to cash in as a result of a particularly buoyant market . ‘ But as the market begins to cool , those looking to sell are doing so at increasingly unrealistic prices. ’ Last year , house prices rose by 8 per cent , according to Halifax , peaking at 10 per cent over the summer . But forecasts suggest prices will grow at a fraction of this rate this year . 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 depleted numbers of sellers . It said some agents ‘ overvalue a property on purpose to win the business and get the seller on their books ’ , knowing the price must later be knocked down significantly before it sells . Russell Quirk , of eMoov.co.uk , said : ‘ Unfortunately it ’ s a common place practice in the high street sector . ‘ The agent is driven by a percentage fee so they will overprice a property to try their luck , win the business and increase their profit margins . A study found that Britons selling their properties refuse to admit the housing market has cooled and mistakenly believe they are sitting on a goldmine . ‘ Understandably the seller opts for the agent that claims they can get the highest price , as we are all motivated , to some extent , by money . ‘ Then as regular as clockwork the agent will ring them a few weeks down the line and ‘ advise ’ on a lower asking price in order to sell . ‘ 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 regardless of what advice they receive. ’ A survey of 2,000 sellers in England and Wales , carried out by eMoov , found that that more than half of sellers would list their property at a price recommended by their agent . But over a third said they would list at a higher price than this , while only one in 20 said they would go lower than the recommendation . A third of sellers also said getting the highest price was the most important factor , while a quarter said their priority was securing a buyer with stable finances . A seventh of respondents said not missing out on purchasing a new home they liked was the most important issue . Andrew Montlake , of mortgage brokers Coreco Partners , said : ‘ Estate agents say their biggest battle at the moment is trying to get sellers to agree to a realistic figure because they are reluctant to accept that prices have come down . ‘ At the start of last year , we had the perfect storm . The economy was recovering and buyers and sellers who had done nothing for five years leapt into action . ‘ Lenders wanted to lend and the market went crazy , with almost every property receiving a ridiculous number of offers . ‘ But we are now in a more sensible market and the buyers are back in control . There is no longer the same demand. ’ He added : ‘ 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 . ’
Study shows England sellers refuse to admit the housing market has cooled . Buyers increasingly treat asking price as starting point for negotiation . Average sales price is £207,000 but average asking price is £281,000 .