snikpoh

... it SHOULD be registered in Spain as well - just like in UK (don't know about France).

snikpoh

I'm still confused by all this talk of "offer 20% less" or "offers should be 30-40% less than the asking price".

This is pure rubbish!


On the one hand sellers are told that they will not sell their property unless they price it correctly, and then the buyers are told to make offers of up to 40% less!

Well, which is it - are the prices correct or should the sellers inflate the price in the knowledge that buyers will offer up to 40% less. People can't have it both ways.


I've always said that one should offer what ever they believe a property is worth TO THEM. It then doesn't matter whether they offer the asking price or a lot less. I agree though that they should always make an offer. The worst that can happen is that it is rejected.


[end rant]

amideislas

In any region, there is a fair market value for any particular property. It's not difficult to calculate a fair range for any property value.

Spain is a little unique in that respect. Property pricing is not always based on a rational evaluation of "fair market value", but often on other factors - such as the "opinions" of multiple "family" owners, or how it might be priced in other country or region, pricing a wreck as if it were already completely modernised, or simply "pulling a number out of thin air".

Considering the differences in currency and economic conditions in other countries, many sellers will price their properties on that basis alone. For example, some will deliberately target their properties at British expats, simply because the pound is strong and the property valuations in the UK are much higher, which can make their overpriced property in Spain seem like a bargain.

And although that bears little relationship to the actual fair market value of the property here, Brits often naively take the bait, so it's not a particularly daft tactic for sellers - depending on the property and location. Brits prefer to live amongst Brits, and so location has a lot to do with it.

I can't speak for the rest of Spain, but here in Mallorca, property prices vary wildly - just for those reasons. You can find a 2BR apartment in an expat area selling for nearly €500K, or a 4 BR villa with private pool and a big chunk of land for €275K. Or a small 2BR cottage in the middle of nowhere priced at €300K.

So "how much under should I offer" is not an unreasonable question. The answer, however, is far more complicated than that.

But I agree - the simplest solution is always the best: Offer what you're willing to pay - and be prepared to walk away without regret if rejected. Simples.

Moses2013

Best pay what you think is right and you can't go wrong. It's also hard to compare prices of houses, as every home is different. Even if it's on the same complex, one house might be in a bad condition and the other one isn't. One house might be more expensive, because the garden is nicer and has mature trees. Some people might pay more, because the direct neighbours are nicer.

snikpoh

I would love to know the 'true value' of our property but I find it almost impossible (do you have any tips?).

I know what we paid for it in 2006. I know the number of rooms (20), bedrooms (7) etc. I know the size of the plot (8000m2). I know the documented size of the property (550m2). I know the cadastral value. It has a pool (8*5), outside kitchen, outside shower room etc. It has a garage and several workshops/toolsheds. We are in the campo but only 3km from town with good access. It is a unique house in this area.

But, having said all that, I've asked a couple of agents and all they say is "what do you want for it?" They will NOT give me a value. (I'm not selling by-the-way).

If we estimate the value based on rebuild costs, then it's a lot of money which I can't see being correct.


So what range of values would you put on this property?

Horlics

Heck! Who cleans that place, a coach load of professionals! 20 rooms. Is it a hotel?

jimenato

Blimey - that's quite a house.

All I can tell you is that it is well beyond my reach.

amideislas

Try an official property appraiser, such as SOCIEDAD DE TASACIÓN

This will give you an accurate current market value. It may not be what you want to hear, or even how you may ultimately choose to list it for, but it's a lot more realistic than just "guessing", and you also have the benefit of knowing whether offers are realistic or not.

cricketman

Could be anything from 300k-3 million euros depending on the type of build and exact location

300k if it is kind of basic in design and the finishing

3 million if it is all marble and oak, underfloor heating, infinity pool, gold taps etc. and great location overlooking the city and the sea

I have relatives with a 600m2 house near Mijas, 4000m2 of land and 8 beds. This is much more expensive area than the Costa Blanca, but we think it would be worth maybe 1-1.2 million now, closer to 2 million in peak times

By the way, these type of houses have an electric bill of 500 euros per month, and then maintanance, water etc.. So even if you get a good price you need to be able to afford to run it

Moses2013

It's very hard to put a price on a property like that, especially if there are no other similar properties in the area. Most people also believe that they have a good taste, but it doesn't mean that others would like it. You could have spent a million yourself, but if there are no buyers it's pointless to say what it's worth.

cricketman

Yes exactly. When you are talking about such big properties then they are very difficult to sell at any price, even in a boom market - and even more difficult to price up

Moses2013

I think that's why you often see POA. Estate agents wouldn't know what it's worth, so as you said it could be anything from 300K - 3 million. Let the buyer decide what he/she thinks it's worth and take it from there.

snikpoh

... and that was exactly my point when the quote was

I wasn't trying to say that we have a large house, just that I can't see how one can value it.

Of course we can get official valuers in but I was hoping there was an easier route.

Moses2013

Sure if you don't want to sell, then why bother. You probably know better than any of them.

jogger

Reading this thread you would almost think there wasn't a glut of housing on the market. I think in reality there is and an awful lot of people would snatch your hand off if you came to them with a half decent offer. I bet a lot of people selling their houses now ( who didn't inherit them) put in an offer when they bought the house originally.