Assessing property values now?

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This topic contains 18 replies, has 11 voices, and was last updated by Profile photo of Anonymous Anonymous 8 years ago.

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  • #54514
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi all,

    As I alluded to elsewhere, I am considering taking the plunge soon. But, I am really struggling to makes sense of values at the moment. so I am rather hoping that you guys can help to bring a little clarity.

    So, the problems seem to be that (as we all know) prices got massively out of control on the Costas. But now I am starting to see a wide range of pricing, some stuff seems to have fallen 25-35%, some is still hanging in there at peak prices.

    However, even the keenest prices are at the top of my impression of fair value.

    The majority of agents are saying something like “if you want it make an offer, any offer, just try and see” and this seems to smack of desperation to me. So, this is where I am struggling to make sense of the market.

    For example, a nice semi detached 3 bed, 3 bath house that I am considering peaked around 370000€ here, today an unoccupied, unloved one of these has an asking price of around 270000€ and the agents are clear that this is still too high. My feeling is that fair value is somewhere around 200-230000€ but I just don’t know. Maybe this will be seen as way to high in another 10 months?

    Any comments? (please :D)

  • #88225
    Profile photo of Anonymous
    Anonymous
    Participant

    It all seems to depend on the vendor.
    2 properties I’ve been involved with this week, opposite ends of the price spectrum.
    One (restored cortijo, Ronda area) had an asking price of 1.5M€ about a year ago, the vendors (English) have just accepted an offer of 1M€.
    The other (terraced townhouse, Olvera area) had an asking price in the order of 120k€, a sale had been agreed at that price and then the vendors (Spanish) decided to raise the price by 12k€!
    It’s a mad mad world out there at the moment…values, schmalues!

  • #88235
    Profile photo of Inez
    Inez
    Participant

    The ‘making an offer’ isnt desperation but as agents, a lot of the time owners will not reveal their true hand, therefore one cannot tell when an owner will capitulate and accept a low offer.

    Main carrot is to be offering cash as finance takes a long time and in cash sales one can dictate the price.

    If the owner is able to accept a low offer it is the agents duty to put the offer to the owner and try to negotiate the deal fairly for both sides.

    Good luck

  • #88237
    Profile photo of Anonymous
    Anonymous
    Participant

    Thanks for the replies.

    I feel a little clearer about the state of things now. It rather seems as though no one really has a clear idea where the market is, and that we are simply in a market where hard bargaining is the order of the day.

  • #88238
    Profile photo of Anonymous
    Anonymous
    Participant

    I alway smile to myself when I remember a comment that some wit placed on here …….

    “If you are not embarrassed by your own offer, then you need to knock some more off”

    Wise words indeed, when a bottom feeder.

    N.B. Apologies to the originator, if I haven’t exactly quoted you.

  • #88240
    Profile photo of Anonymous
    Anonymous
    Participant

    The probelm with this type of market is that everyone wrongly assumes that every vendor is desparate to sell.

    This is simply not the case. You may find people looking to sell to move up, move country’s, etc etc, not just because they are desparate.

    I would suggest that now, 3 in 10 are like that. if you go around looking for those people, you will lose the property you like, as you wont know until you put an offer in. If I was an agent in Spain, which I am not, I would not want a client trying to make 10 offers on 10 properties to see who bites.

    Find the property you really like, see if the price stacks up on the market, then try an offer, maybe 10-12% below the advertised price. You may need to negotiate of course. if the agent says ” I could get a deal on this one, then offer 25% less and see what happens. Balls of steeel

  • #88241
    Profile photo of Anonymous
    Anonymous
    Participant

    @El anciano wrote:

    Hi all,

    As I alluded to elsewhere, I am considering taking the plunge soon. But, I am really struggling to makes sense of values at the moment. so I am rather hoping that you guys can help to bring a little clarity.

    So, the problems seem to be that (as we all know) prices got massively out of control on the Costas.

    So you want to buy soon but do not have any idea about market value?

    Sorry, the only advice is to hold your guns and wait till you do your homework properly.
    Otherwise you will regret.

  • #88243
    Profile photo of katy
    katy
    Spectator

    I know quite a lot of people who are selling and I agree with Joe…some are not prepared to sell low (maybe 10% less) if not, as one person said to me, “we will lock and leave”. Others may be very keen and be prepared to come down further, unless you know their personal circumstances it’s impossible to judge. Some who may be desperate to sell may have already reduced substantially and may be very close to their “bottom line”. I know someone who has reduced 25% from bank valuation and still no viewings.

    One friend I know has three properties for sale. No viewers at all (one is coastal and two Inland). They said they are feeling depressed about it so have gone to South Africa for an extended holiday! I would imagine they are not so financially stressed to reduce much.

  • #88245
    Profile photo of Anonymous
    Anonymous
    Participant

    @katy wrote:

    I know someone who has reduced 25% from bank valuation and still no viewings.

    One friend I know has three properties for sale. No viewers at all (one is coastal and two Inland).

    Tell them to ask a price which is at least 5% lower than any other asking price on the block/resort.

  • #88247
    Profile photo of katy
    katy
    Spectator

    Two are country villas which they reformed for investment and the other is coastal villa which is a one-off.

  • #88249
    Profile photo of Anonymous
    Anonymous
    Participant

    Posted

    “So you want to buy soon but do not have any idea about market value?

    Sorry, the only advice is to hold your guns and wait till you do your homework properly.
    Otherwise you will regret.”

    As far as I can see thats just what he is doing by contacting threads like this.
    The one thing at the moment is that its very difficult at the moment to get valuations on the Costas due to the whole sorry mess over the last few years.

    First of course will be location and the areas that did well before well before the s–t hit the fan and properties in cr-p locations where valued at stupid prices
    Then you will need to find a very good local agent to search seach search until that deal is on the table.
    People are not going to sell if they dont have to in good locations anyway.
    It wont come buy looking in some estate agents window or the local newspaper.
    They are there now so good luck in finding one.

    Regards
    Just Frank 8)

  • #88266
    Profile photo of Anonymous
    Anonymous
    Participant

    @flosmichael wrote:

    So you want to buy soon but do not have any idea about market value?

    Sorry, the only advice is to hold your guns and wait till you do your homework properly.
    Otherwise you will regret.

    I think you have misunderstood me, I have done a ton of homework. But analysing this market & drawing sensible conclusions of extremely difficult now.

  • #88267
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @El anciano wrote:

    I think you have misunderstood me, I have done a ton of homework. But analysing this market & drawing sensible conclusions of extremely difficult now.

    Let’s make this easier

    what/where/why are you wanting to buy?

  • #88268
    Profile photo of Anonymous
    Anonymous
    Participant

    @fuengi wrote:

    Let’s make this easier

    what/where/why are you wanting to buy?

    What:
    min 3 bedrooms, some garden space for the kids to play. (Workshop/Garage/Underbuild is desirable too, but not essential)

    Where:
    Within 35 mins commute of Alicante airport

    Why:
    Permanent home for the family

  • #88271
    Profile photo of Anonymous
    Anonymous
    Participant

    I know someone who has reduced 25% from bank valuation and still no viewings

    I found that bank valuations were meaningless!

  • #88274
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi jwc
    Posted

    “I found that bank valuations were meaningless!”

    Bingo so is the stupid predictions that property will fall by X %or a property has fallen by Y %
    Assuming we are talking off plan then not only is the bank valuation meaningless so is the price the developer put on many developments and accordingly the over market price paid by the buyer.

    Some properties will be almost worthless other established areas may be able to get some idea of valuations from the history of sales.
    Most bought in the last 5 years may loose but on very different scale to others.

    Again a good agent in the area anyone is looking at will know this.

    Regards
    Just Frank 8)

  • #88275
    Profile photo of Anonymous
    Anonymous
    Participant

    Yeah, I think that is part of the problem. Bank valuations seemed (to me) to a rather generous in the past. I know it was commonplace for valuations to be high enough to cover the purchase costs, and sometime a new car!

  • #88277
    Profile photo of Anonymous
    Anonymous
    Participant

    Yep
    Including the deposit and the 10% commission over valued. 😯

    Just Frank 8)

  • #88302
    Profile photo of Anonymous
    Anonymous
    Participant

    Does that mean you can’t do that anymore ?
    I thought that was how all houses were bought in Spain !

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