Yahoo Finance What is seller fatigue and how can it impact you when buying or selling property?
Whether you’re a buyer or seller, "seller fatigue" needs to be on your radar.
If priced correctly and marketed at the right time of year, most properties should sell within one to two months. Seller fatigue sets in when this doesn’t happen and when the initial enthusiasm disappears because a significant amount of time has elapsed and there’s been a drop off in viewings and offers.
Research by estate agent Hamptons shows that, on average, across the UK, it currently takes 45 days for vendors to receive an offer, up significantly from 2020/2021, when the average was 25 days. Offers in the South East take longest to materialise at 52 days, while Scottish vendors received one after an average of 39 days.
UK vendors took 72.7 days to reduce their asking price in the first half of 2024, with those in Wales waiting the longest — 100.9 days — and those in Scotland the quickest to reduce at 67.1 days.
“Sellers are waiting nearly twice as long as they were during the pandemic, and around 10 days longer than the pre-Covid average,” says David Fell, lead analyst at Hamptons Research.
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“Sellers have generally been fairly reluctant to cut so far this year, particularly as the house price indices have returned back to positive territory, meaning that perhaps they’ve lost some of the motivation to cut.
"Higher mortgage rates over the last 18 or so months have been a handbrake on the market, one which should start to loosen a little over the rest of the year. Some sellers have been quite happy to wait things out, particularly if their onward purchase requires a mortgage.”
What is seller fatigue?
A sluggish market with lots of waiting is setting up the perfect conditions for seller fatigue. “[This] occurs when a property owner feels that their journey of selling their home turns into a mentally and, sometimes even, physically draining experience,” says Nigel Bishop, of buying agency Recoco Property Search.
“This stress is often triggered by the work required to make the property presentable, having strangers entering the home to conduct viewings but also when a property fails to attract offers and remains on the market.”
In terms of timeframe, it can vary from person to person and also from area to area, with some markets more slow-moving than others.
“It’s fair to say that every seller’s journey is different, and every person has a unique tolerance level when it comes to stress. With that in mind, one might experience seller fatigue at a different stage than others,” adds Bishop.
Which properties are most likely to sell more slowly?
There are certain properties which sell more slowly and are more likely to lead to seller fatigue for their owners.
“It’s quite common to see downsizers selling much-loved family homes which are in need of refurbishment, but there’s a mismatch between buyer and seller perspectives. In the vendor’s eyes the condition is perfectly acceptable, but buyers in today’s market expect properties to be pristine; in other words, they have been stripped back to brick in the last five years and refurbished immaculately,” says Jo Eccles, founder of buying agency, Eccord.
This is because the price of doing work to a property has substantially increased in the last five years and potential buyers are factoring this in when they view a property. If a seller thinks their property is perfect, but a buyer sees thousands of pounds of work, this automatically sets up an issue when it comes to pricing.
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Pandemic pricing has also led to a gap between sellers’ price expectations and what vendors are willing to pay. “Many sellers think their properties are due the ‘pandemic premium’, achievable when houses were selling in super-quick time with some significant premiums attached. But this era is history; sellers must adjust their expectations,” says James Greenwood, MD of Stacks Property Search.
Prime Central London, in particular, is seeing seller fatigue set in as prices haven’t increased much in a decade. “As a seller it can be very difficult to accept that your property is worth the same, or perhaps even less, than you paid for it 10 years ago. But pricing correctly is critical, and buyers simply won’t engage if they believe a property is overpriced,” adds Eccles.
Sellers: How to avoid it
“There are two key reasons for properties not attracting buyers which can lead to seller fatigue. Firstly, the asking price has been set too high and secondly, the property sale was launched at the wrong time of year,” says Bishop.
To avoid seller fatigue, you need to price your property correctly in the first place. “It is a sad fact that some agents will over value in order to try and win business, take houses on and then negotiate the price down very quickly. For some, it is almost an art,” says Edward Heaton, founder of buying agency Heaton & Partners.
“I’d always recommend prospective sellers obtain three valuations and ask the agents to justify the prices they are suggesting. If a valuation sounds too good to be true, it probably is.”
Eccles goes further and proposes pricing slightly lower to drum up interest: “Creating competition and momentum by pricing low and attracting multiple interested parties often results in the final sale price being bid back up to the correct level — and the property selling much more quicky — as opposed to the reverse trajectory of pricing high and negotiating down.”
In terms of when you put a property on, you need to consider its selling points. Country properties or those with big gardens sell best in the spring and summer, while terraced houses sell well all year round.
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If you live in the catchment area of an outstanding school, time your house sale so that, if all goes to plan, a buyer could move in in time for the start of school year in September. January, December and August tend to be the quietest times for selling a property of any type.
As well as timing and pricing, you can also make sure everything is in order before going on the market. Decluttering, repainting and sorting out the garden are all things that should be done before a property is launched rather than afterwards when it’s failed to sell. Ask your agent for their advice on the little things you could do to help a sale.
“It always astonishes me how little effort so many people put into selling their biggest asset. The reality is that the overwhelming majority of prospective buyers don’t have the vision to see through somebody else’s mess. So, follow the house stager’s advice and declutter, clean, redecorate, keep the garden tidy and keep the pets out of the house for viewings,” says Heaton.
He also advises getting all the legal paperwork ready so you can act quickly when you do get a buyer and foresee (and solve) any potential issues ahead of time, such as short leases.
“You should be speaking to your solicitor at the same time you instruct an estate agent. Fill out the Property Information and other forms, so that a contract can be sent out as soon as a buyer is found.”
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Greenwood says a key to avoiding seller fatigue is staying mentally focussed on your end point: “The seller will initially be looking at their onward purchase, and may find something they want to buy, but won’t be far enough along with a sale.
"Stay motivated by continuing to look at the onward purchase; stay enthused and presenting the property in its best possible light. Don’t blame it on the selling agent and get frustrated with them if they’re doing their job properly.”
Buyers: How to make the most of it
Of course, seller fatigue presents would-be buyers with a great opportunity to bag a bargain, but Greenwood advises staying sensible: “The worst thing a buyer can do is make a silly offer, thinking they can capitalise on seller fatigue.
"Before rushing in with a low offer, find out as much information as possible from the selling agent — What’s the position of the vendors? How long they’ve been on the market? What their appetite to sell is.”
When you do put in an offer, be sure to add any advantages that you bring as a buyer, such as a quick exchange, completion date flexibility or no chain. These will make sellers take even a lower offer more seriously.
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“Keep the dialogue positive and be careful never to make disparaging remarks about the property in the presence of the owner or agent,” advises Eccles.
“If the property has been on the market for a while they may be feeling battered and bruised by negative feedback they’ve received, so a buyer who shows appreciation for their home and politely presents a carefully packaged offer can feel like a hand reaching out.”
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