The difference between asking prices and actual sale prices is smaller on the coast where foreigners tend to buy, research suggests.
I recently reported that the average offer made in Spain was 21% below the asking price, according to a study by the Spanish property portal Idealista.com. However, foreign buyers and vendors might also like to know that the actual discount to closing prices is more like 5% to 10% in coastal areas where they tend to focus.
“This is something we have been analysing for some time, as I think that’s it’s one of the more useful stats for buyers and sellers and comparisons are a good guide for the strength of the market,” explains Campbell Ferguson, a FRICS chartered surveyor in Spain, who runs Survey Spain – a survey and valuations company. “It’s not easy as reliable actual buying prices are not readily available and that’s probably the reason for the ‘ups’, but enough clients report back to us for us to make some calculations.”
According to Ferguson’s research, the average percentage difference between asking prices and closing sale prices on the Costa del Sol and Costa Blanca was around 6% in the second quarter of this year, down from 11% in Q2 2015, and 16% in Q3 2014. This suggests that vendors are in a stronger position than before, and don’t have to accept such a big discount to close a sale.
It makes sense that discounts on the coast are smaller than the national average, as the market on the coast and the islands is stronger due to international demand.
“6% is the average, but each case is different and there can be wide variations,” explains Ferguson. “There is still a fair amount of negotiation because there is so much on the market, and there are still some desperate vendors out there, and Brexit has now given British vendors more room to maneuver on price.”
For more information on the latest difference between asking prices and actual buying prices see the Survey Spain Spanish property market report for Q2.