February 8, 2013 at 9:48 am #57263
We receive regular emails from —-, ‘Your latest Costa del Sol Property News’ Sometimes properties seem to be genuine reductions and possibly fair value (for now), they may fall further as forecast.
Have just been sent details of a villa in Carib Playa reduced from 1.2 million euros to 598k euros. How that was ever valued originally at 1.2 million beggars belief, and, I would say it’s still overvalued by 200k. It is in a tight plot, really overbuilt area, views towards a block of flats and other building, poorly furnished (vendor’s fault), I just can’t see it as a so called bargain.
Some while ago, same company had a hugely overpriced villa in Coin that was fairly promptly reduced yet still overpriced.
My question is, who comes up with these valuations, the agent or vendor? If the agent, then I don’t believe it helps either them or the vendor, apart from commission for agent. I think the market would benefit if valuations were correct and transparent, but until that happens then people may still seriously overpay. 🙄 In the UK, the better agents tend not to take properties on if vendors ask too much 😉
February 8, 2013 at 10:01 am #115078
I think I mentioned one we looked at with a similar price reduction…it wasn’t even worth the 550,000 price tag. I think it is the vendors that set the price. Many vendors have totally unrealistic expectations of the value of their home, particularly the Spanish and the Germans. When we have sold through agents they have either just asked what price we wanted or at first suggested a low price. We would then say that we wanted X amount and they have gone ahead.
There is a few on the market I know very well and they are still asking around 700,000 for villas that are old and need a full reform…probably worth around 350,000 🙄
February 8, 2013 at 1:32 pm #115099
But isn’t it the case the world over with estate agents. They want the property on their books to say that they are busy…in the hope that someone will buy one. They’ll say ‘oh what a wonderful house blah blah blah to the vendor, they’ll wince at the price the vendor wants (knowing that they won’t get it) but if they have it on their books they’ll be happy. All they have to do then is say ‘lower the price and you’ll get more interest’ and again ‘lower it again’….until it reaches a price someone is prepared to pay.
It’s not rocket science and I guess it’s why most sane people don’t really like estate agents (sorry agents…). Anyone could do it with a bit of a flair for talking things up….
Rose tinted glasses are still on for many and it’s very sad. I wish to high hell that our flat was worth the mortgage but it isn’t, and it won’t be for probably ten years. Hard cheese…. Why do people who paid over the odds for a little boxy villa then still assume that it’s worth boom prices? There are endless adverts where I want to write ‘are you out of your mind, your 200k price tag is about 150k too much at this point in time!!.
A friend has a house which she paid 90k for in 2002, she has it on the market now for 80k but I am going blue in the face just trying to explain to her that she’d be far better putting it on at ‘offers around 50k’ and being lucky to be offered 40k for it! She wants her money back…. but sadly she’ll probably be in her 80’s or dead before she gets that… that’s the problem. Sell now if you can for the money someone wants to pay, or wait and pray that things pick up, banks start to give out mortgages and a positive attitude encourages people to go back out to live in Spain?
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