The Easy Way to Sell Your Spanish Property
April 21st, 2009
This could hardly be called a cheery week for Spanish property news. Even the fact that Sterling is worth more Euros this week than last, is more of a reflection of European pessimism, than UK optimism.
The eagerly anticipated Tinsa index failed to offer any crumb of comfort regarding early signs of an economic recovery in Spain. No frantic straw-clutching could succeed in putting a positive spin on this month’s set of numbers.
Still, at least the Tinsa data seems to be reliable. Not even the Spanish government believe their own official statistics about the shape of the housing market.
Yet, there is hope contained in Spanish Property Prices Continue to Fall: “A recent Reuters housing poll of Spanish and foreign-based economists found that on average prices were expected to fall 32 percent from their 2007 peak”.
While that won’t much of a comfort to people who bought a Spanish property at or near the 2007 peak, most other property owners wishing to sell sooner rather than later know what they need to do.
As I outlined in What Will You Pay for a Spanish Property in 2010, vendors know precisely how to price their property to sell – just take 32% off its peak value in 2007.
An example: You pay €210,000 for a Spanish property in 2003 and it increases in nominal value to €395,000 in 2007. (I say ‘nominal’ because a house is only worth as much as someone will pay for it, and, until it is sold, who knows what they will pay?).
Most vendors wanting to sell that property today would be tempted to advertise it at around €320,000 – but that won’t work. Most people won’t bite at that price.
Instead, advertise it at €270,000 and you’ll have a queue forming outside your front door. Hopefully, you’ll find more than one who is serious – and you can stick resolutely to your asking price.
Clearly, not every Spanish property owner is able to take this kind of ‘hit’ when selling – but many can. The reality of the situation today is that property prices in Spain won’t recover for a good few years – and it will take even longer for the highs of 2007 to be reached again – if at all.
Vendors can either sell now at a realistic price or wait a long, long time for their ‘ideal’ price to be realistic again.
As I commented before in Spanish Property Market: Heal Thyself, there is no shortage of people ready, willing and able to complete on a Spanish property – they simply need to be convinced it represents good value.
Despite the lack of reliable official data about the Spanish property market, despite the gloom and doom of most news stories in circulation, vendors have all the tools they need to be able to price their Spanish property to sell – and sell quickly.
Martin Dell, Kyero.com
Related Posts
- How to Sell Your Spanish Property
- 64 Golden Rules to Sell your Spanish Property
- 20 Ways to Buy and Sell in Spain
