The last couple of years of the Lincoln property market has seen some amazing prices being achieved with multiple offers and many properties selling for way over the asking price.
Yet, as I have been writing about the Lincoln property market over the last few weeks, the tide is beginning to turn, and the pendulum swing more towards a balanced Lincoln property market as more homeowners in the Lincoln area (LN1 – LN6) have been reducing their asking prices.
Of the 1,541 properties for sale in the Lincoln area,
491 have been reduced in price in the last 3 months.
This can be broken down as follows…
So why is this important and why is this good news, even for Lincoln house sellers?
Property industry statistics show that 5 out of 6 house sellers will buy another property and over
80% of those sellers will move up the property ladder.
When you move up the property ladder, that normally means you pay more for the one you want to move to (that’s why it’s called the property ladder).
So, whilst you won’t be getting as much for yours as you might have done earlier in the year, you won’t have to pay as much for the one you want to buy (and the price difference between the two properties will be smaller – meaning you will end up saving money because of these reductions).
Therefore, what is the level of reduction being seen in the Lincoln property market?
The average percentage of the price reduction in the
Lincoln area has been 5.3%.
I must stress house prices/values in Lincoln haven’t dropped 5.3%, just the asking prices of some of the properties on the market.
This is good news for Lincoln first-time buyers and landlords, as they will be more likely to buy a property at a more reasonable price. Whilst, as I explained above, this is also good news for sellers as most of them will end up paying less for the higher priced property they end up buying after selling theirs.
So, what should Lincoln homeowners be aware of if they are selling their home now or in the future?
For me, it is important that I inform all Lincoln property owners of the real story. This enables them to judge for themselves where they stand in the current Lincoln property market, thus enabling them to make better informed decisions.
You see some Lincoln estate agents will deliberately over inflate the
suggested initial asking price to the house seller because it gives them a bigger
chance to secure the property on that agent’s book, as opposed to a competitor.
This practice is called overvaluing.
Now of course, each Lincoln homeowner wants to get the most for their Lincoln home, yet some estate agents know this and prey on those Lincoln house sellers.
You might ask, what is the problem with that?
Well, you only get one opportunity at hitting the Lincoln property market as a new property. Everybody has access to the internet, social media and the four main property portals (Rightmove, Boomin, On The Market, Zoopla), and your potential buyers will know the property market like the back of their hand.
If you have a 2-bed Lincoln semi that is on the market for a 3-bed Lincoln
semi-detached house price … those Lincoln buyers will ignore you.
Your Lincoln property will stick on the market as your potential buyers keep seeing your property on the portals each week.
These buyers will then start to believe there is something wrong with your property and dismiss it even further. That is until you, as the house seller, reduce your asking price. The issue is that sometimes these buyers will think something is wrong with your home and could bid you down even further, meaning you will get even less than you asked for! (This was backed up by some research done by Which?).
Now according to research by Denton House, the average British house buyer only views around six properties before buying – so please don’t assume viewers will come round your optimistically priced (i.e. overvalued) Lincoln home, thinking they will knock you down – quite the opposite – they just won’t view your home in the first place.
And deep down you know that is true, because I bet you have done
the same yourself when searching for property
So, all I suggest is this … be realistic with your asking price to start with.
Do that and you will sell your Lincoln property at a decent price to a decent buyer … first time, every time (Our current average time to receive an acceptable offer is currently only 42 days, the lowest in Lincoln, versus 189 days for some other Agents) – enabling you to move onto the next chapter of your life.
If you know of anyone currently selling their home in the Lincoln area and finding things difficult, please share this article with them as it could be of interest.
