Those of you who regularly read my weekly articles in the Bingham Property Blog will know I like to keep abreast of the Bingham property market. Something attracted my attention this week about the local property market, something I wanted to share with my many readers.
Over the last month, there appears to have been an anomaly in the local property market, whereby asking prices in the town have dropped, yet property values have increased. The average asking price of a Bingham property, according to Rightmove, fell 1.4% this month yet the average value of a Bingham property rose by 0.8%.
So how does this relate in monetary terms? This anomaly has driven the average asking price of a Bingham property down slightly to £213,000 whilst the average value is now £219,500.
So why the difference? Technically an ‘asking price’ can be any price that a homeowner wants to place his or her property on the market for. Unfortunately, many times this is done without research and can result in overpriced properties that don't sell. As the Summer months are normally slightly quieter those left on the market wanting to sell often temper their asking prices in these months to try and generate interest in their property.
On the other side of the coin, the property ‘value’ is the price that a willing buyer is prepared to pay and a willing seller is prepared to sell at. Therefore, in a nutshell, Bingham property values are continuing to rise and those homeowners in Bingham who have properties on the market, last month on average, reduced their asking prices .. great news for property owners and buyers alike!
In previous articles, I have spoken about the continued fundamental shortage of property coming on to the market compared to buyer demand. That is especially true for homeowners wanting to upgrade to a better house/better location. I can appreciate Bingham home owners are reluctant to put their own property on the market speculatively and wait for the right property to become available and some high demand locations can suffer from a property stalemate.
However, for the landlord/buy to let investors, these potential problems are nothing further from the truth. As I write this article, there are 7 flats for sale, 10 terraced houses and 6 semis for sale in Bingham. Landlord/Buy to let investors can normally pick up some bargains in the Autumn months, as sellers who are selling their homes often have a pressing need to sell by this time.
The types of houses a Bingham landlord typically buys, are not the same types as the homeowners wanting to move to a posher area of the town as they are attracted by larger semis and detached properties. The best types of properties for buy to let are the smaller flats, terraced and semis (not the big detached ones).
If you are a landlord or thinking of become one for the first time, and you want to read more articles like this about the Bingham Property Market together with regular postings on what I consider the best buy to let deals in Bingham, out of the properties on the market, irrespective of which agent is selling it, then you keep an eye on this property blog.