The price is right
Properties in Spain are still being sold but for much less than the asking price so now could be a good time to make an offer...
Despite the economic downturn properties in Spain are still
selling, but it is those with reduced asking prices which are receiving the
most interest from buyers.
Although many vendors have reported they are unable to sell their homes, this
is mainly because they are not willing to reduce their asking price and are
still expecting to receive what they would have got 18 months ago, at the
height of the boom.
Even though it is much harder to get a mortgage at the moment there are still
people who want a property in Spain
and they will buy, if the price is right.
Reports on Kyero.com say a number of
properties were recently sold in the Almuñecar area of Spain, because the vendors were
willing to reduce their asking prices by 30 per cent.
Martin Dell of Kyero.com said, "I can understand the reluctance of
dropping asking prices by 30 per cent - and not leaving any room for further
haggling - but leaving asking prices high is simply putting off buyers from
even contemplating making an offer."
He suggests it is currently a buyers' market and that anyone looking for
properties in Spain
should go for ones that are around 30 per cent above what they can afford to
pay and then see if the vendor will accept an offer that is within their budget.
This way they will also be able to get a better property than what they could
have afforded 18 months ago, but for the same price or even less.
Not all vendors will want to drop their asking price as they may not be in any
hurry to sell, but anyone who wants a quick sale or needs the money will be
open to negotiation.
Dell also suggests that with the current Pound/Euro exchange rate it is worth
looking for a vendor who wants to repatriate the proceeds of the sale to the UK.
"If you are buying in Euros you can offer at least 20 per cent less than
just six months ago and the vendor will still end up with the same amount in
Sterling, and their tax liabilities will be 20 per cent lower in Spain
too," Dell advised.
"If you are buying in Sterling conduct the entire transaction in
that currency to reduce the buying and selling costs and to remove the currency
risk from the equation for both parties."
2009 is set to be a year of property bargains in Spain for anyone who is ready to
take advantage and negotiate their price.
Source: www.homeoverseas.co.uk/news