Re: Re: Has the strength of the Spanish Market being Underestima

#100931
Anonymous
Participant

Yes of course we all know that there is a difference between asking price and selling price. Under normal circumstances whether in a falling or rising market that difference may be 10% or much less.

I bought my second property at the wrong time and for the wrong reasons. You could literally take £1000 put it in a pile in the middle of the room and burn it when my mortgage was revaluated for the next year at 6% weeks before interests rates plummeted and sterling lost 30%. But still today if I owned the property it would be costing in the order of £600-£700 per month. For that is sat there empty, slowly collecting dust. I therefore marketed it at a price to cut my losses as it was obvious the market would continue to fall. If you wanted it to sell today in the timeframe that I sold it within I think you would need to market it at another 20,000~30,000 Euros less than my actual sale price.

What I find surprising is that you can see a few owners that have marketed their property at substantial reductions to get a sale. But these sellers are few are far between, but even now I can see their adverts have been placed for several months or more indicating that they are still for sale.

I find it remarkable that after 2 years I can place my advert again and increase the price by 20,000 Euros as others properties in the complex are still priced higher. Maybe I have a more pessimistic view of Spanish household finances, but I know the cost to me of my second property bought at the wrong time and I would imagine more sellers need to offer more realistic prices. That doesn’t seem to be the case. 3 or more years sitting on property bleeding money hurts.