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