At what price

Old Feb 16th 2015, 4:39 pm
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Default At what price

how much under asking price to offer in spain
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Old Feb 16th 2015, 4:47 pm
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Default Re: At what price

Do you have a piece of string?
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Old Feb 16th 2015, 4:52 pm
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Default Re: At what price

Originally Posted by tysondream
how much under asking price to offer in spain
Normally Spanish people will not accept any offers because they have made up their minds what the house is worth and they will not shift. However, times have changed with the crisis so there is no knowing what would work nowadays. So if you find a house that you like try it and see what happens but be prepared to either walk away or give a further offer.

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Old Feb 16th 2015, 4:57 pm
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Default Re: At what price

Just work out the price per M2 and compare that with similar properties at the same location to establish whether it is a good price.
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Old Feb 16th 2015, 7:51 pm
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Default Re: At what price

Sorry for hijacking the thread
Is having the money ready, without needing to apply for mortgage, a valid reason for asking for 5-10% price reduction? Or people just don't care?
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Old Feb 16th 2015, 8:07 pm
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Default Re: At what price

Not likely to matter. The money ends up in the sellers hands either way.

However, instant cash has a certain appeal. Especially if a good chunk of it can be cash.
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Old Feb 16th 2015, 8:11 pm
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Default Re: At what price

When you watch A place in the sun, they seem to think that 30-40% under asking price is acceptable.
As someone selling my house, I would tell them in no uncertain terms, to take their insulting offer, and put it somewhere to grow a bit!
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Old Feb 16th 2015, 8:12 pm
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Default Re: At what price

Originally Posted by Dr. A.Gon
Sorry for hijacking the thread
Is having the money ready, without needing to apply for mortgage, a valid reason for asking for 5-10% price reduction? Or people just don't care?
No doubt about it IMO cash always rules.
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Old Feb 16th 2015, 10:15 pm
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Default Re: At what price

Originally Posted by Neptuno
When you watch A place in the sun, they seem to think that 30-40% under asking price is acceptable.
As someone selling my house, I would tell them in no uncertain terms, to take their insulting offer, and put it somewhere to grow a bit!
A friend had a call fom an agent at the start of the year with an " offer " of E125.000 for their apartment , they told the agent in no uncertain terns that it was not even worth considering.
The agents response was " well it is up to you but if you do not want to sell your apartment etc etc.
A few weeks ago they accepted an offer through another agent of E152,000.
Too many agents seem to have forgotten who they are working for!!
You have to ask who is encouraging low offers ??
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Old Feb 16th 2015, 10:29 pm
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Default Re: At what price

We had our apartment on at 149,000 with our bottom line 130,000.
Eventually we had a bottom line offer from some Dutch people. They then asked about the possibility of a garage. We told them a garage to buy would be circa 12,000 in Frigiliana. They then reduced their offer by 12,000.
We told them to go away and reproduce, not buying them a garage.
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Old Feb 16th 2015, 11:02 pm
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Default Re: At what price

Originally Posted by tysondream
how much under asking price to offer in spain
Depends if you have been quoted the 'guiri' price or the Spanish price.
if the former then the actual value will be much less
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Old Feb 17th 2015, 6:12 am
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Default Re: At what price

Originally Posted by EMR
Too many agents seem to have forgotten who they are working for!!
You have to ask who is encouraging low offers ??
I sense this is only an agent being rational about the valuation of a property, in the absence of any rationality.

A lot of properties are "valued by committee" of family owners who inherited it and have an inflated sense of value, with zero understanding of actual market value. Some add sentimental value to the price (e.g., "my grandfather built this house!").

It can also be that family members who own the property can't agree on a selling price, so they list it for the highest price that all family members can agree on.

In other cases, it's to avoid appearing "desperate" to their peers. After all, Gonzales' down the road sold their grandmother's house listed for €500K (but in truth they ultimately settled for an offer of €220K, and they simply neglected to mention that part).

And there's always a few "know it alls" that are certain that they are the only ones on the planet who know the value of their property. Everybody else is an idiot.

A good agent should and will advise the seller that it's a completely unrealistic valuation. But that advice often lands on deaf ears, and the property sits empty with zero viewings - for years in many cases. The agents, therefore, have no interest in showing the property, because they know it won't ever sell (complete waste of their time).

Some time ago, some acquaintances of ours listed a house up for about double it's actual "sellable" value. It sat on the market for about a year, and out of curiosity, eventually I sent an email to the agent expressing interest, mentioning that the price seemed unusually high. The agent simply responded with another similar property, more rationally priced.

Whose fault is that?

Originally Posted by MikeJ
Depends if you have been quoted the 'guiri' price or the Spanish price.
if the former then the actual value will be much less
I don't believe the 'guiri' price is always a conscious, deliberate effort. I sense it's more an inflated value for the sake of inflated value (as illustrated above). It just so happens that naive foreigners fall for it most.

What Rosemary said is equally true - Many Spanish people just have a price, and that's their price - even if it means they'll never sell it.
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Old Feb 17th 2015, 7:18 am
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Default Re: At what price

Originally Posted by amideislas

What Rosemary said is equally true - Many Spanish people just have a price, and that's their price - even if it means they'll never sell it.
Yes and it is worth mentioning that Spanish people most often have no real need to sell

In the UK there is a housing ladder so people might need to sell because they are expecting a new baby or they have been offered a job somewhere else

This is rarely the case in Spain. People tend to buy a property and just keep it until they might die or they "could do with releasing the money" without actually needing it

So people would rather wait and wait and wait than sell for an "insulting" price at what they perceive to be the bottom of the market
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Old Feb 17th 2015, 7:31 am
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Default Re: At what price

Originally Posted by amideislas
I sense this is only an agent being rational about the valuation of a property, in the absence of any rationality.

A lot of properties are "valued by committee" of family owners who inherited it and have an inflated sense of value, with zero understanding of actual market value. Some add sentimental value to the price (e.g., "my grandfather built this house!").

It can also be that family members who own the property can't agree on a selling price, so they list it for the highest price that all family members can agree on.

In other cases, it's to avoid appearing "desperate" to their peers. After all, Gonzales' down the road sold their grandmother's house listed for €500K (but in truth they ultimately settled for an offer of €220K, and they simply neglected to mention that part).

And there's always a few "know it alls" that are certain that they are the only ones on the planet who know the value of their property. Everybody else is an idiot.

A good agent should and will advise the seller that it's a completely unrealistic valuation. But that advice often lands on deaf ears, and the property sits empty with zero viewings - for years in many cases. The agents, therefore, have no interest in showing the property, because they know it won't ever sell (complete waste of their time).

Some time ago, some acquaintances of ours listed a house up for about double it's actual "sellable" value. It sat on the market for about a year, and out of curiosity, eventually I sent an email to the agent expressing interest, mentioning that the price seemed unusually high. The agent simply responded with another similar property, more rationally priced.

Whose fault is that?



I don't believe the 'guiri' price is always a conscious, deliberate effort. I sense it's more an inflated value for the sake of inflated value (as illustrated above). It just so happens that naive foreigners fall for it most.

What Rosemary said is equally true - Many Spanish people just have a price, and that's their price - even if it means they'll never sell it.
The example I gave was on a fairly large and popular development and any agent worth the name would/should know the " going " rate.
In this case another apartment not as old or as large sold earlier for E145,000.
I do not blame anyone for making what appears to be a silly offer but rather the " take it or leave " atitude of agents. Who appear to be encouraging low offers because as we know NO SALE., NO COMMISSION.
The structure of the property market does not encourage agents to seek the best price for their customer.
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Old Feb 17th 2015, 7:40 am
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Default Re: At what price

Originally Posted by EMR
The structure of the property market does not encourage agents to seek the best price for their customer.
That's the problem when there is so much excess stock

It isnt really the fault of the estate agent. 80% of them have gone bust since 2008 so actually those that survived must be doing something right
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