Sellers who overprice their homes when they first come to market could end up accepting almost £34,000 less when they eventually sell, new research suggests.
More than a third (36.2%) of properties sold across England and Wales during 2025 required at least one asking price reduction before reaching exchange, according to the Property Markdown Index 2026 from We Buy Any Home.
That compares with just 8.1% in 2023, while the research finds properties requiring reductions eventually sell for an average £33,597 less than their original asking price.
The analysis, using data from property insights firm Tytl, examines 887,882 completed sales across England and Wales between 2023 and 2025.
MULTIPLE CUTS COST £51,000
The impact becomes considerably greater for homes requiring repeated reductions.
Properties with three or more asking price cuts eventually sell for an average 13.3% below their original listing price – equivalent to £51,026.
Each additional reduction costs sellers around £12,000 on average, while homes reduced three or more times take an additional 10 weeks to sell.
By comparison, properties that do not require an asking price reduction sell for an average of just 2.5% below their initial price.
Elliot Castle (main picture, inset), Chief Executive of We Buy Any Home, says: “Our research shows optimistic agents are taking instructions and letting vendors see the realities of the market themselves, which often means a huge impact in the eventual agreed sale price.
“Homes that are overpriced are languishing on the market for longer than those that are priced correctly to begin with – and it’s the sellers who are paying for it.”
WALES HARDEST HIT
Wales records the largest gap between initial asking and eventual sale prices, averaging 5.2%, with properties spending an average 194 days on the market.
London sees around 39% of properties undergo a price reduction, with eventual sale prices averaging 5% below their original asking price.
In the East Midlands, 37% require a reduction and the average gap between asking and sale price stands at 4.8%, compared with 4.7% in the East of England.
The North East performs more strongly, with 28% of properties requiring reductions and an average 2.9% difference between initial asking and final sale price.
FIRST THREE WEEKS ‘CRUCIAL’
Castle says: “The first three weeks on the market are crucial as that’s when listings attract the most attention online.
“Price reductions also weaken your negotiating position as when buyers see a reduction they assume there’s further room to haggle.”
Tom Neall, COO of Tytl, adds: “There are subtler problems that overpricing creates. When a property lingers buyers grow suspicious and perceived value drops.
“The home becomes stale in the eyes of the market and no amount of subsequent price cutting fully restores that initial excitement.”
