As a Romford estate agent, I have witnessed first-hand how the Romford 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
Romford 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 Romford Properties: Quick Turnaround (up to £300,000)
Entry-level properties, typically affordable homes suitable for Romford first-time buyers or Romford buy-to-let landlords, tend to have a relatively high saleability rate. The demand for these Romford 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 Romford buy-to-let landlords, as they tend to offer yields and returns, leading to a quicker sale process.
Mid-Range Romford Properties: Normally a Balanced Market (£300,000 to £425,000)
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 Romford Luxury Properties: Normally a Longer Selling Time (£425,000+)
Top-end luxury Romford 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 Romford property by price band.
The following can be seen …
- Entry-Level Romford Properties – this market is not doing so well, especially the range up to £200k.
- Mid-Range Romford 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 £350k to £400k.
- Upper Quartile Romford 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 £2m+ range.
However, there are other factors influencing saleability than just the price band.
Property Market Conditions in Romford
The overall state of the Romford property market greatly influences the saleability of properties across all price ranges. In last week's article, I discussed whether Romford 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%.
Looking at the top end of the market nationally, last year, 51.9% of properties over £1m marketed throughout the year had a sale agreed on them. For 2023, it’s been 35.1%.
Location Location Location (in Romford)
The location of a property plays a crucial role in its saleability. Desirable neighbourhoods and housing estates/developments in Romford 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 Romford 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 Romford 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 Romford Property
Understanding the dynamics of selling properties across different price ranges is essential for buyers and sellers in the Romford 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 in Romford.
As the Romford property market continues to evolve, it is always beneficial to stay informed about the value of your Romford property.
Therefore, I encourage all Romford 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!