Unlocking the Secrets of the Lincoln Property Market Across Different Price Ranges
As an estate agent, I have witnessed first-hand how the property market operates and the various factors that influence property sales.
One intriguing aspect is the difference in saleability across different price ranges.
In this article, we will delve into the dynamics of selling properties in relation to their price ranges and explore the factors contributing to varying sale rates.
Price Range and Saleability
Properties are often categorised into distinct price ranges, such as entry-level, mid-range, and upper-quartile luxury. Each segment attracts different buyers with varying purchasing power, preferences, and investment goals. These factors play a crucial role in determining the saleability of properties within each price range.
Entry-Level Properties: Quick Turnaround (up to £180,000)
Entry-level properties, typically affordable homes suitable for first-time buyers or buy-to-let landlords, tend to have a relatively high saleability rate. The demand for these properties is often robust, driven by increasing population, rising interest in homeownership, and government incentives for first-time buyers. Moreover, entry-level properties usually attract buy-to-let landlords, as they tend to offer yields and returns, leading to a quicker sale process.
Mid-Range Properties: Normally a Balanced Market (£180,000 to £300,000)
Mid-range properties occupy a middle ground, appealing to a broader range of buyers with more financial flexibility. Market conditions, location, and property features generally influence the saleability of these properties. In a balanced market, where demand and supply are relatively equal, mid-range properties tend to sell at a moderate pace. Factors such as property condition, amenities, proximity to schools, transportation, and amenities play a vital role in attracting potential buyers.
Upper Quartile Luxury Properties: Normally a Longer Selling Time (£300,000+)
Top-end luxury properties, characterised by their exclusivity, unique features, and high price tags (in the top 25% price-wise – hence the phrase Upper Quartile), often require a longer selling time than other price ranges. The pool of prospective buyers for luxury properties is smaller, requiring individuals with significant financial resources. The selling process involves careful marketing strategies, targeted advertising, and connections with affluent buyers. Patience is critical when dealing with luxury properties, as it may take months to find the right buyer who appreciates the property’s exceptional qualities and is willing to meet the asking price.
So, let us look at the saleability of property by price band.
The following can be seen …
- Entry-Level Properties – this market is doing well, especially the £150k to £200k range.
- Mid-Range Properties – as expected, things are a little more challenging in this price range as it is more affected by the current higher mortgage rates, with the best range being £300k to £350k.
- Upper Quartile Luxury Properties – The higher-end properties, compared to last year, are still holding their own (although let us not forget the actual numbers of houses are lower). Things are tougher in the £500k to £600k range.
However, there are other factors influencing saleability than just the price band.
Property Market Conditions
The overall state of the property market greatly influences the saleability of properties across all price ranges. In last week’s article, I discussed whether the UK was in the buyers’, sellers’ or balanced market. During a sellers’ market, where demand outweighs supply, all properties sell quickly regardless of their price range. In contrast, in a buyers’ market, where supply exceeds demand, properties may take longer to sell, especially in higher price ranges.
For example, nationally, any property up to £200,000, which is considered the lower quartile of properties (i.e. the bottom 25% of properties by value), have had a saleability rate of 75.3% in 2023, yet last year it was 90.9%.
For 2023, it’s been much lower at 35.1%, I strongly believe that the stamp duty changes are impacting those properties over £600,000. For example, if you agreed to buy a house for £700,000 and it was your only home, Stamp Duty, paid on completion is now £22,500. If this were a second home, this would increase to £43,500
Based on this, if you were to chain brake, which is completing on your new house purchase before your current home is sold, you would be liable for the additional property rate of £43,500.
As you would own 2 properties for a short period. Once your initial home sells, you can apply for a refund of the higher Stamp duty liability.
The Government will allow up to 3 years for the sale of the existing property to allow for any delays or difficulties with the transaction.
Location Location Location
The location of a property plays a crucial role in its saleability. Desirable neighbourhoods and housing estates/developments with excellent amenities, proximity to outstanding primary schools, transportation, and shops often attract more buyers, regardless of the price range. Buyers are willing to pay a premium for properties situated in prime locations.
Property Condition and Features
The condition and features of a property significantly impact its saleability. Well-maintained ten out of ten properties with attractive features, modern amenities, and updated bathrooms and kitchens are more likely to attract potential buyers across all price ranges. Would it also surprise you that properties that need absolute gutting (i.e. one or two out of ten properties) also attract many buyers as they often wish to put their mark on it? Interestingly, properties requiring some moderate renovations or lacking desirable features (i.e. those in the mid-range of four to six out of ten) may experience slower sales or necessitate price adjustments.
Targeted Marketing and Pricing
Effective marketing strategies tailored to each price range can enhance the saleability of properties. Accurate pricing is crucial to attract potential buyers and generate interest. Overpricing will deter buyers, while underpricing may lead to missed opportunities for maximising your returns. A skilled estate agent like ourselves can provide valuable insights into pricing strategies and develop marketing campaigns to target specific buyer segments.
Final Thoughts on the Saleability of the Property
Understanding the dynamics of selling properties across different price ranges is essential for buyers and sellers in the property market. Whether you are contemplating a move or planning to stay put until late this year or even 2024, it is worth assessing the saleability of your home.
As the property market continues to evolve, it is always beneficial to stay informed about the value of your property.
Therefore, I encourage all homeowners to contact our estate agency to comprehensively evaluate their home’s saleability. Our team is ready to provide expert guidance and assist you in making informed decisions about your property.
Don’t hesitate to give us a call today!