- March 16, 2007 at 1:15 pm #52723
I recently made an offer of the full asking price for a villa in Mijas Costa which I considered to be fair value after the owner had reduced the price to sell, this was done directly to the owner with no estate agents involved.
I was very surprised that the owner now tells me that somebody else has offered more, I know for sure that the property has been on the market for almost two years.
My lawyer says its possible he is lying to get more money, but I don’t think so. I think what this shows is that the market is still fairly buoyant for the right property at the right price.
- March 16, 2007 at 1:50 pm #70088
I have a friend who is an es. and he tells a very different story, people making silly offers, wanting 110% funding, dreamers who think they can buy at silly prices, I think you were just plain unlucky.
- March 16, 2007 at 7:05 pm #70098
The situation is not good but as with most things you only hear the bad
The bottom line is that something is worth what they are willing to pay of it ?
So just may be you may be right?
Does your friend say if these silly offers are being accepted as thats a very different situation as anyone will try it on given half a chance
- March 17, 2007 at 9:25 am #70102
Cant speak for the whole of Spain but in this area good houses, well presented at sensible prices are still selling albeit not in the volumes they were 2-3 years ago. Its a mixed bag re people offering and accepting offers. Offers up to 15-20% below the asking price are not uncommon. Stange but the vendors with house allready overpriced and not in such good condition seem least likely to accept offers. Guess some people have got the plot and some havn’t
- March 19, 2007 at 7:46 am #70131
No the silly offers are not being accepted but what seems to occure more frequently is that where an offer has been accepted after much negotiation the buyer cannot complete because the bank valuation on the property will not allow them to borrow 110% or even more.
- March 19, 2007 at 10:37 am #70144
Just been reading the Spanish freebie newspaper Qué. There is an report saying that around 30% of estate agents could fold because of the property downturn. Yet, on the same page it says property will rise by 10% 🙄
GNIK, I have heard many time recently about everyone wanting 100% plus mortgages and from different sources, does anyone know why this has suddenly become the thing?
- March 19, 2007 at 12:51 pm #70145
It seems that banks will lend you 80% of the value of the property, so to get 100% plus mortgage, the bank will have to value the property way above its actual value, this is why some deals are now hard to complete. Some mortgage brokers are able to work with banks that will over value but the mb will ask more in commission, this could lead to buyers needing up to 15% above the purchase price.
- March 20, 2007 at 3:28 pm #70159
Many buyers are asking for full purchase price. Basically the banks lend by working out the value based on euros per square metre interior, terraces garage etc. Once this figure is worked out then most non residents will be offered either 70 or 80% of that (depends on the bank used).
As actual purchase prices are dropping BELOW the banks figure, in some cases full 100% finance can be obtained.
However the banks are closing down on this now so it is becoming ahrder to acheive – it was a good window of opportunity whilst it lasted!
Hope that explains things
- March 25, 2007 at 6:03 pm #70280
There are bargains to be had. I have just seen a house that was valued by the bank 2 years ago at €600,000 that has now dropped in price to €300,000.
I know the owner and I know she will accept even less because her husband died and the house is way too big for her (it is a 500M house) What is incredible is that the price works out at about €600 per sq M, (at its current price) which is about what the owner paid to have it reformed (I know because i used to work for him)
I am thinking of making an offer myself because it would make a great investment (Small hotel/bar – change of lifestyle one thinks).
The moral of the story is that there are real genuine bargains about because some people are desperate to sell.
There are still many sellers who hold out as Jim says overpriced properties, but the harder you look the more you find a golden nugget.
The Spanish property market is like the Californian gold rush. In the early days everyone made because there were lots of people wanting to buy. Now the market has slowed right down you have to really dig to find the gold, but if you dig you WILL find a bargain out there
So good luck and don’t offer full asking price – there are so many more properties about
- March 25, 2007 at 8:19 pm #70287
Oh yeah…. 🙄
- March 26, 2007 at 8:47 am #70306
O Yeah indeed. In every market there are sellers desperate to sell. In a rising market they don’t have to wait too long. In a falling market they do. As you pointed out earlier Katy most properties are now having to wait for 2-3 years to sell mainly because they were over priced.
Therefore if someone wants to sell in a hurry – and some do – then they will need to reduce their prices below others that are selling. However when the market is bad as it is now, then they need to reduce their prices even lower because more people are trying to sell.
There are people in circumstances whereby they have to sell. One person I came across had a heart attack and would have almost given his house away to go back to the UK. He was willing to sell it at half the advertised price (which wasn’t actually a bad price even then)
Don’t believe me then a simple acid test. Put an ad in the Sur simply stating you have cash waiting for the right property and when someone calls you and gives you a price tell them you would offer half. I would be willing to bet that a couple will get back to you and say yes. Certainly in this area they do.
Also you will normally find that professional investors / ie those that research and do their homework well) will never buy in a rising market and tend to wait until the market reaches bottom or put ridiculously low offers in. If you offer 100 people silly offers, one of them will accept. As I said in my previous post, the low hanging fruit no longer is available so you have to dig to find your buyers, but whether you like to believe it or not, buyers are out there, they are just more clued up on the market, less willing to accept crap and certainly unwilling to pay over inflated prices. Therefore an owner that is willing to come down to meet them will sell.
So yes … Oh Yeah
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