25.3% of Preston Property Sellers Reduce Their Asking Prices as the Property Market Equilibrium Star
· 547 of the 2,154 properties on the market in the Preston area have had a price reduction in the last 3 months.
· The average reduction has been 5.9% of the original asking price.
· This is great news for Preston home buyers and Preston buy-to-let landlords, strangely Preston house sellers as well.
The last couple of years of the Preston 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 Preston property market over the last few weeks, the tide is beginning to turn, and pendulum swing more towards a balanced Preston property market as more homeowners in the Preston area (PR1 – PR5) have been reducing their asking prices.
Of the 2,154 properties for sale in the Preston area,
547 have been reduced in price in the last 3 months.
This can be broken down as follows… Price Range of the Preston Property
Number of Price Reductions in Last 3 Months
£0-£50k = 12
£50k-£100k = 44
£100k-£150k = 88
£150k-£200k = 78
£200k-£250k = 89
£250k-£300k = 76
£300k-£350k = 42
£350k-£400k = 44
£400k-£500k = 41
£500k-£600k = 18
£600k-£750k = 11
£750k-£1m = 3
£1m-£2m = 1
So why is this important and why is this good news, even for Preston 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 Preston property market?
The average percentage of the price reduction in the
Preston area has been 5.9%.
I must stress house prices/values in Preston haven’t dropped 5.9%, just the asking prices of some of the properties on the market.
This is good news for Preston 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 Preston homeowners be aware of if they are selling their home now or in the future?
For me it is important that I inform all Preston property owners of the real story. This enables them to judge for themselves where they stand in the current Preston property market, thus enabling them to make better informed decisions.
You see some Preston 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 Preston homeowner wants to get the most for their home, yet some estate agents know this and prey on those Preston house sellers.
You might ask, what is the problem with that?
Well, you only get one opportunity at hitting the Preston 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 Preston semi that is on the market for a 3-bed Preston semi-detached house price ... those Preston buyers will ignore you.
Your Preston 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 less even though you asked for more! (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) Preston home, thinking they will knock you down - quite the opposite - they just won’t view your home in the first place.
And you know that 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 Preston property at a decent price to a decent buyer ... first time, every time - enabling you to move onto the next chapter of your life.
If you know of anyone currently selling their home in the Preston area and finding things difficult, please share this article with them as it could be of interest.