Spanish banks ‘must be better agents'

Demonised by agents for keeping prices artificially high to avoid losses, or making it harder for agents to access distressed deals, many now feel that Spanish banks must become better estate agents if the market is to recover...
 
Ian Waudby, chairman of investment consultancy Crest Group International, observes that the companies set up by banks are slowly making it easier for foreign buyers and agents to access stock; but he stressed that buyers need a quicker response from these companies and a faster sales process.
 
"The properties need to be packaged with mortgages," he told OPP. "The websites aren't bad but if you try to make an offer you won't hear anything back. CAM is the most organised at the moment but by the middle of next year they'll all be offering the same thing."
 
The price is wrong
Discounting is central to the current bank-owned property stalemate, with agents saying they're either not big enough, or only available for too short a period of time - Banesto, for example, is offering 40% discounts but only for November.
 
"There aren't enough desirable properties at the distressed prices that people want," said Inez Rix, owner of Direct Auctions. "The demand is there but even if people see their ideal property they aren't prepared to pay for it if it isn't cheap.
 
"We don't bother with the banks because their prices are higher than those of the private sellers and they also charge high legal fees. If they'd knock €20,000 off their prices we'd sell their property right away - they are keeping prices artificially high and are being extremely unrealistic."
 
Mortgage obstacle
Mortgages are still a major barrier, with banks either reserving the best products for their own stock or not making them available at all. "It's hard to get mortgages still and bank-owned properties need cash buyers," said Bob Callan of prime Marbella agent Callan Developments. "A lot of people expect a bargain from the bank but can often get a better deal from an individual distressed seller."
 
Pro-active banks that price realistically will see more profit than those who wait out the market, according to Rix. "I think the market will force them to lower prices eventually," she said. "Everything's about two years behind what it should be and I expect they're sitting on an awful lot of stock. The big banks such as Santander could probably sit on it for 20 or 30 years but the smaller ones can't. There aren't enough buyers at the moment and they may have to bite the bullet and get rid of their properties."
 
Most agents OPP spoke to agree that the sooner the banks bite the bullet, the sooner the Spanish homes market will recover.

Source: www.opp.org.uk