July 25, 2006 at 12:06 am #52034
does anyone really believe that the property prices on the costa del sol will “balance out” over the next 12 -18 months, or ever
do you think that, even with properties on the market for 12 months plus, the prices will drop noticable
or do you think that there has been too much speculation and people would rather hang on to their over-priced property because:
a: the agent said it would sell for that much
b: a similar property up the road is on for the same price
do you think it’s time for vendors to “GET REAL”
i would love to hear your opinions
i would love to hear you shout your opinions from the roof tops 8)
July 25, 2006 at 8:08 am #64114
Vendors over-pricing? Well, we like to walk away from those properties…. and how angry do these vendors get with us? Absolutely livid some of ’em. They can’t believe that an estate agent (aka Scum of the Earth) would dare to not take their house on the books!
I only take about 1 in 5 properties I’m offered now because many people do have totally unreasonable expectations as to the “value” of their property.
Why can over-pricing happen?
In my own experience:
Reason 1) Some Big Boy agencies hire inexperienced valuers who go out to list a property, ask the vendor how much they want for it and then add their commission on top. So, it hits the MLS system, the For Sale sign goes up and all the neighbours start calling out of curiosity. Wow, they think. That’s a lot. So they put theirs up at the same price with a private Se Vende sign…and so it goes on.
Reason 2) Many people understandably flatly refuse to sell at a loss. By default they take the purchase price, add 12% completion costs, bit of furniture, sales agent commission (+ VAT) and lo and behold they’ve got to ask a minimum of 20% more than they paid for it to just break even. Some of the 2 bed 2 bath developments in less desirable areas are selling at the same price now as they were 3 years ago so those poor folks who are stuck with these units will have to sell at a loss in order to get some money back or just stick it out for another few years until market recovers.
Reason 3) Crap estate agent over-pricing an existing property in order to get the client/vendor to buy something else. The lady with the big hair who posts her picture all over Marbella is famous for that stunt. Locals know who I mean.
Reason 4) Spanish vendors taking a standard 3 bed 2 bath townhouse and converting to a 7 bedroom “masterpiece” with every surface covered in pictures of the family hence making theirs the “best house in the development and of course worth more than the neighbours”. I particularly cringe when I see these houses as the vendor has put his heart and soul into that house and can’t understand why it just won’t appeal to the Northern European Market. Sorry to all Spaniards who post on the Forum for this Reason but we have to accept that it happens.
Reason 5) Goppingly horrible interior design which the vendor has spent a fortune on and wants to get back the cost in terms of “added value”. Once saw an apartment that was a shrine to Newcastle United and the bloke couldn’t understand why anyone else wouldn’t want it that way.
Reason 6) Over-expensive furniture pricing. OK, so you’ve spent 100k on furniture in El Corte Ingles and you now think your 200k apartment is worth 300k. Wrong! Second hand furniture usually counts for nothing in Spain as people tend to have their own taste.
Reason 7) Good old fashioned greed.
Back to work now. Catch you all later.
July 25, 2006 at 10:41 am #64119
There is a widespread belief among vendors that British buyers often pay daft money for Spanish property. Interestingly, it is British vendors who are most firmly wedded to this idea.
We never ask a vendor how much he or she expects for his property before giving them our own valuation. Like Sarah, we are often criticized for not agreeing to market a property at the price that the vendors wants.
July 25, 2006 at 10:58 am #64120
I was introduced to a villa in February by a local builder whose work is normally great. Great piece of land but damp in the basement of the house, a huge pylon in the garden and only half of the sqm on the title deed.
Valued the place at around 1.4m€ …. but the vendor wanted 2.5m€. Hence he went absolutely mental at me which was not a happy scene (quite aggressive Sicilian/Spanish gentleman). However I took great delight at the sight of his wife who kept poking him in the ribs and saying…”see, see I told you it was only worth 1.4″! It would have made for great TV!
Another agent listed it and the place remains unsold…and unviewed…to this day.
July 25, 2006 at 11:16 am #64121
Great post….but best part of all…
What a word!!!
Haven’t heard/used the word “gopping” for many, many years.
Thanks for the smile!
July 25, 2006 at 3:43 pm #64124
July 25, 2006 at 4:11 pm #64125
A relative put in an offer for a villa last week, strangely the owners (2 sisters from madrid) said that they had decided to up the price by 25000!! Of course they told them to get stuffed, plenty more available. Don’t expect prices to come down 30% though, people just won’t sell if they can’t get a good price, seen it all before been buying and selling for 20 years.
July 25, 2006 at 6:03 pm #64131
Must admit that this is where some Spanish are VERY naughty when they get an offer from a foreigner.
We were constantly told how honourable and proud the Spanish were ( now living in area I agree the majority are) but didn’t stop some of them playing mind games though.
Tries three times to buy a plot of land.
Plot of land illegal.
Spanish vendors not only upped the price but removed the access adding on a steep slope as” compensation”.
Spanish vendor upped the price but did throw in more land…not because he wanted to ….because he was unable to split into two escrituras. He only told us this at the 11th hour in the agents office.
My husband and I ,without a word to anyone, just got up and walked out of the office.
Steam was coming out of our ears.
Vendor dropped the price.
We got into our car and drove off.
Still desiring the land though we did put in a final counter offer the following day. It was accepted.
2 years on the land in our area has risen by 120 %, with no shortage of buyers, due mainly to a new golf course complex just started in our village. We were very fortunate for we couldn’t have bought in this area now.
July 25, 2006 at 7:21 pm #64132
maybe good news for profit but not for quality as new golf course= lots of third world looking apartments and cranes 🙁
July 25, 2006 at 11:24 pm #64136
No-one locally will view the construction only the golf course. The development will be in a valley behind a range of hills .
As for profit. We bought the land to build on ,and have done so,
Yes,in the far far distant future perhaps we will make a profit but my point was how fortunate we bought then. Two years later and we couldn’t have afforded it.
July 25, 2006 at 11:27 pm #64137
You also have to remember that the vast majority of the property owned on the costas is still owned by Spaniards.
Much of this property has been bought over the last 20 years and many own with little or no mortgage.
Therefore it is not important it they do not get the asking price this year as they have minimal outgoings on the property.
For my money the only reason the prices are so high is greed.
Everyone wanted to make their cash and many bought who could not afford to and have been burnt badly.
Those that could have got out refused to accept there was not profit left and continued to completion and now can not afford to sell at an even bigger loss!
July 25, 2006 at 11:41 pm #64140
I was brought up believing a house was a home. Have had 4 in all over many many years. On paper there was a profit..Inflation mostly..but if one actually calculated how much had been spent on keeping each property in good repair and mortgage payments etc then I doubt whether there was much of a profit at all.
If people want to gamble on making a quick profit on property..so be it.. as long as they don’t winge when the gamble doesn’t pay off.
In the end we are are losers when property prices soar because of investors
However it should at least be an fair gamble not one where the odds are totally in favour of the rogue developer.
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