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Speaking to several agents we were told prices on the CDS are down, sales are down and you can put in offers of 10-30% below the asking price.
Guess these were British agents? Problem is that it is the British agents who have fuelled a lot of the problems in the market. It is they that have listed properties at crazy prices just to get the listing and then added a criminal 9% in commission because they are part of the IN network! Of course you can put in an offer of 10-30% down when the price is artificially inflated anyway!
Spanish sellers…..may drop 2-3000euros!
Maybe that is because Spanish sellers and their Spanish agents have the properties more realistically priced in the first place?
The fact that 75% of REA’s are set to close is the best news in the market for a long while!! There are far too many, most have no listings of their own and rely on multi level marketing (sorry, mult listings networks) to have “stock”. For every sale there is usually two agents involved who want a share of the commission, and then the network also wants a share so that’s three commissions to be paid. That 9% charged by the IN network agents could be 3% including IVA if there was only the one agent involved! MLM or Pyramid selling is actually illegal in the EEC anyway!!
Agents on the CDS are over represented and most jumped on the bandwagon with no knowledge or experience. In fact most opened their “property shops” having been on the CDS for a few months living in rented accommodation. Let’s see 80% of them close as a minimum (and mostly they should be the British and other Northern European agents) and get some sanity back in the market!
At the end of the day, there are not enough sellers or buyers that Benalmadena or Fuengirola need 200 agents each! Half a dozen in each town would be more than enough. 90% of the agents belong to one of the three MLM networks so there are actually really only three agents anyway!!
Just about every problem in the property market on the CDS has been fuelled by greed……
The greed of the politicians in accepting bribes
The greed of Estate agents who have set up with no knowledge or experience to make a “quick buck” as the timeshare market is now regulated but REA’s are not!
The greed of sellers who believe that their properties are worth a lot more than they are because the agent told them so!
The greed of buyers who believe that those false inflated prices can be increased year on year in a sustained manner
The greed of buyers who believe they can buy off plan to make profits on the sale of one or two units to pay for their third one
The greed of the solicitors who don’t do the job properly
and I could go on!!!
I have been on this coast for 12 years, make a good living working remotely in IT (all my clients are in the UK or USA), have moved four times (ie bought and sold four times) have never had a problem with the sales in terms of solicitors or legality of property / planning etc.
So many of the problems in Spanish property that are echoed on this forum are those caused by the effect that the sunshine and sangria have on people’s brains. They seem to leave them behind in the UK when they board their EasyJet flight. The property register here is as good as the UK and the laws of property and contracts are as well defined – if not more so. How many people would buy in the UK without a solicitor of their own etc? Yet they come here and do so? How many people would buy in the UK based on the advise of the man in the pub? Yet they do here? How many people would buy in the UK through an agent that has no qualifications / knowledge or insurance? They do here? In the UK they would ensure they have local searches for a property – but here?
IF YOU WOULD NOT DO IT IN THE UK, WHY DO IT HERE WHEN YOU DO NOT HAVE ANY KNOWLEDGE OF THE MARKET, THE LAWS, THE LANGUAGE?
And the answer to that one is usually something like ….. “because this nice British Estate Agent said it would be OK and I could make a fortune!”