Spanish Property Insight › Forums › Spanish Property Forums › Real Estate Topics, News & Discussion › Can the press successfully sell a "bottom"? › Re: Re: Can the press successfully sell a “bottom”?
@chris McCarthy wrote:
And I can’t quite figure how to do the quote thing now the site has changed.
Interesting stuff Chris.
In your experience, what type of property is selling at the moment? Is it Villas or flats, in what price range? Or is there no real pattern?
I fixed the quote box for you. You just have to click the quote button once, then start typing your reply.
There isn’t a real pattern no, and I think that is a good thing.
The sales have varied from a golf course Villa reduced from an initial €1.5m 12 months or so ago now down in stages to €900k, to a country Finca in the €550k range, to several newer projects that have been heavily reduced in the mid 220- 250k range, and the rest in reduced resales priced between 130k to 180k, I forget what was in the first week of April but I think there were several higher priced properties / villas.
Interestingly, the biggest web search item at present is not for apartments, it is for Villa’s and that really hasn’t happened before, and of course in pure €’s that is where the biggest falls have been and between 2004-2008 they became the thing most out of peoples reach I feel.
The guys show a number of developer projects with supposedly great finance deals of 80% mortgage and one or two at some form of 100% cobbled together deal, because these are what a number of people really do understandably insist on seeing, but they don’t sell any or let’s say many of them really. They are not truly what people want, and often they don’t offer or compare in real value to a good – great resale, if you want to use, live, holiday in and rent the property.
People do seem to understand that just because something says 100% finance, and whatever package that goes with that, it doesn’t actually make it a great buy, and well the guys are just not into telling you that this is going like “hot cakes” and “will go up in value” by the end of the month, or at least that’s what they tell me, one supposes the odd one might say it if he saw the right thing and the client also felt that it was a really good buy, and because at some point, that property will be on the market one supposes, so don’t hang me if it does happen on occasion.
And actually it could happen next week! I remember now someone talking of a nice project on a golf course that may well be worth promoting heavily fairly shortly with very creative financing.
Today’s buyer seems to figure, certain properties cannot or at worst are most unlikely to fall further, but there could always be a risk. They look for real / tangible / evident price reductions.
They have been thinking about buying for a long time, perhaps having been sagely reticent to buy from 2005 onwards, or it is just their time, they don’t want to hang on forever, they don’t talk investment, as Angie rightly often points out, at 10% on the way and 10% on the way out, and with the up and down nature of the Euro, that is a hard thing to say at all right now.
These people want to own a home on the Costa del Sol, because they can, because they want to, because it is their preferred choice against other areas or countries, and almost always they know the area.
And because I think I am right in the last 10 sales I think there were just 3/4 Brits the rest were Spanish or other nationals.
The reason why the guys there feel they will move up in sales is because of their nationality mix, product and price mix, and because each time the world wide economic hysteria calms a little bit there is a lot more confidence.
I am not there all the time, but when I am there, the people I see making the decision to buy all look very happy, very sensible, practical and have all their ducks in a row financially, but most importantly they do seem to have done a lot of research so are very knowledgeable also.
These are nice people to represent. Again, I am sure there examples that would buck this trend, they can’t all fit this criteria and at one end of the scale there are some who would be aggressively seeking an “absolute steal deal” who are disappointed with the guys and are therefore often rude and difficult to deal with, and some vendors at another end who think all their viewings are completely unable or interested to buy and what on earth are the guys doing bringing them to view. But that has always been the case.
So, back to 1,000 word rambling posts and oh… just remembered I should throw in an emoticon 😀 here and there, so… no pattern, except perhaps that this is a pattern in itself; what will hopefully be over a number of years, all sorts of people, looking for all sorts of property at different prices, from all sorts of places really.
They have shown properties to in excess of 100+ people a month over the whole year except for Jan I think, this has been a mixture of other agents bringing them clients, this is quite a high percentage and their own direct clients.
Sadly they don’t sell many other agents clients, these agents are often not actually what you would really call an estate agent, they seem to want to dive into a property and get out in 5 minutes and go off to the next one, which is not very satisfactory at all really for anyone, buyer, vendor, or listing agent but then some clients obviously feel they want to be represented by people who don’t actually have any listings at all, my view is that is mad, really mad, but hey it is just a view. However, by its nature of ducking in and diving out, well it doesn’t sell many properties does it.
However, the guys believe very clearly that if they get over 60 direct clients a month that some 15 will buy, which is a percentage they did achieve over 8 years, and are moving back toward so that is the rationale behind going over 20 sales a month and upward.
There you go! 🙄