Property Discount is No Guarantee of a Sale

Selling your property became more difficult in 2015, according to data released by online property portal Fotocasa.

Owners who had a property for sale in 2015 found they had to reduce the original asking price by an average of 14% in order to sell. This is the equivalent of 33,400 Euros, one percentage point below the previous year. Fotocasa reported that the 14% decrease was the slightest reduction required to sell over the last six years, and indicates a continuing recovery in the property market.

Discounts Applied to Properties by Year

On average, 36% of owners who put their property on the market were able to close the deal, an increase over 2014 when only 28% of owners managed to sell. On average it took 10.6 months to sell a property, one month shorter than in 2014 when it took an average of 11.5 months.

In 2015, 44% managed to sell their property in under six months, while 25% needed between seven and 12 months to sell. A further 16% took between 13 and 24 months while 15% took over two years to complete a sale.

Beatriz Toribio from Fotocasa, said “The housing market has not yet recovered, but has been reactivated and therefore is more dynamic than in the worst years of the crisis. In 2015 those who managed to sell their property took less time to complete and applied a lower discount. But to sell, you need to lower the price: 81% of the owners who sold a property in 2015 had to do this,”.

Type of Residence

Of the sellers surveyed for the report, 46% said the property they sold was their main residence, followed by those selling a second home (22%), while a further 18% said the property sold had been inherited.

By types of property 52% were flats and 19% were houses. Apartments made up 7%, with 4% being duplex properties, and 4% penthouses.

Price Reductions Don’t Guarantee a Sale

According to the data, 64% of properties for sale in 2015 failed to sell, despite an average time on sale of 14 months. Of those that didn’t sell, 66% said they had applied a discount to the asking price with an average discount of 14% of the asking price. This translates into 32,797 Euros but this was not a guarantee that the property would sell.

Toribio explained that “The price is one of the factors that influence the purchase of a house, but also the location, distribution, quality and housing characteristics. Not everything is sold,”.

Despite the findings the survey also showed that there is still some resistance to reducing prices with 52% of owners who did not manage to sell said they had not applied a discount and were not willing to do so.

“For the first time during a study we found owners who, despite not selling, are reluctant to lower the asking price, which is very surprising after all that has happened in the housing market,” added Toribio.

How to Sell?

The data also shows that more people are turning to Spanish real-estate agents in order to market and ultimately sell their property. 68% of people who sold their property in 2015 did so through an agent.

Sellers citied the main reasons for using agents rather than selling privately as being the quality of potential buyers (43%), convenience (24%), and avoiding red-tape (16%).

You can read the full report here.

Tips to help sell your Spanish property

Here are some keys points to help you to sell your house to a foreigner, whether they are Russians or Chinese, French, British or German, foreigners really are encouraging the Spanish property market. Selling land to foreign investors is one of the best opportunities in the current market.

Although  purchase data shows prices are still far from the peak they reached in the boom years, foreign – resident and non – residents bought 12,070 homes in the third quarter of 2013, representing 17.2% of total operations in Spain.

However, selling a home to a foreign investor, whether resident or not, is not easy, although you the public must know how to reach them. Here are six points that can help you get it sold:

Sell-Your-Spanish-Property-Fast
Selling a property in Spain is not that easy

1 – . Think who may be interested in your house

Not everyone looks at things the same and sometimes the country of origin can give us clues, a large majority of foreign buyers, whether or not resident here maybe looking for a second home in coastal towns, scenic or tourist cities. However it is possible to find buyers seeking housing in a city for work as in the case of Chinese citizens.

2 – . Consult which nationalities are more interested in buying your Area

It is important to know that British buyers are still the biggest part of the market, but now buying more than ever are the Belgians, Dutch, French, Germans, Russians and North Africans, this means you have to be more select where to advertise your house, the wording of the advert and what languages to put the advert in.

3 – . Succeeds with language

Market your property to other nationalities and get a hint of possible languages ​​to write the ad, but it is also important to be well written in each of the languages ​​chosen, try not to do a quick translation,  if you do not speak the language well hire a reliable translation service.

4 – . Sell ‘ lifestyle ‘

Some buyers will buy a house on the coast due to sun, sea and Mediterranean climate and the location, a flat in Madrid will attract buyers that may prefer cultural and leisure activities, good communication , gastronomy and architecture. Find something that appeals to them and highlight the environment and what you can offer.

5 – . Well connected

To a foreign buyer this is vital, a citizen of another nation if buying a home here, whether a resident or not a  will probably travel with some regularity to your country, to visit yours, or receive visits,  if you highlight that you have a place  easy to travel to this it will be a big plus when it comes to selling.

6 – . Use the internet and social networking

Is one of the best ways to reach international audiences, think also to advertise to tourists who come to spend a few days and try to advertise on property portals to work with other countries.

If you are keen to sell your property on the Costa del Sol and want to appeal to foreign buyers contact us today to help get your property marketed and sold, with a network of over 300 agents we can help give you the exposure you need. Click the below link and send your details and we will contact you right away.

Sell your property

Spanish banks ‘encouraged’ to sell assets

Mariano Rajoy
Rajoy will "encourage" banks to sell assets

In an address to the Spanish parliament last week newly elected Mariano Rajoy says Spain’s banks will be encouraged to sell off their real estate portfolios in 2012.

Mr Rajoy said the true value of the aptly named “toxic assets” held by many of the country’s financial institutions needed to be clarified.

The Guardian quoted Mr Rajoy as saying: “We must clear up doubts about the value of certain assets, especially in real estate, which make access to the markets for the financial sector more difficult and also damage the credibility of our public debt.”

Antonio Barroso, analyst with Eurasia Group, told the Associated Press that there is still a division between the Popular Party, who have the majority in Parliament, and the Bank of Spain regarding the option of establishing a central bank to deal with all the toxic assets.

The value of property in Spain has taken a large hit over recent years with the latest Tinsa report showing a national fall of 8% between November 2010 and November 2011.

OPP Live & Property Investor Show – Last Chance to Book a Stand

You have just 1 week left to book your stand at The Property Investor Show & OPP Live (13-15 October, Excel London).

This is the premier event of the year for the UK’s property investors and trade professionals – and the place to be for any company serious about conducting business with them.

It is also the UK’s longest established dedicated property event and, over 3 days, thousands of visitors (typically owning 4+ investment properties each) will descend on London to appraise the opportunities from a broad spectrum of UK and international exhibitions.

This year’s show highlights will include…

Live Auction – Friday 14th October – Following the success of last year’s auction – which generated a revenue in excess of £9 million! – the show is delighted to confirm that a follow up will take place within the exhibition on Friday 14th October ONLY. Presented in conjunction with ‘MustBeSold.com’, Graham Penny – well known to followers of BBC TV’s ‘Homes under the Hammer’ auction programme – will again bring down the gavel on 150 – 200 lots.

Property in Pensions – A dedicated SIPP Zone, coordinated by property consultancy ‘Intelligent Partnership’ will feature for the 3rd successive year. The SIPP Zone offers alternative pension planning with free advice and a road-map to build or rescue existing pension schemes. For example: Hear about innovative farmland investment projects from the Food Water & Energy company, giving investor returns based upon two harvests a year starting at 9% and rising to 14% a year.

Holiday & Park Home Investment – One in five holiday-bed nights in the UK is spent on one of 4000+ parks. In fact the ratio would have been higher in 2010 but for many parks having to refuse visitors because they had reached maximum occupancy. This trend has not gone unnoticed by the investor community – and many have identified ‘Holiday’ and ‘Park’ and  investments as an emerging sector that fits within a balanced investment portfolio.

Alternative Investments – A growing trend among the property investors visiting the show in recent years has been a demand to acquire different assets to add to their property portfolios. Reflecting investor demand, this year’s visitors will be able to review the investment potential of a range of alternatives, including …

  • Car park spaces
  • Residential care homes
  • Forestry
  • Land
  • ‘Green Investments’ (e.g. carbon credits, biofuel)

2 x seminar programmes – This year, we are delighted to include 2 separate programmes.  The Investor programme will include 30 new speakers while The OPP Conference programme will concentrate specifically on ‘trade issues’ in international markets. All programmes comprise a mix of seminars and panel debates of varying length – and many sessions will be fully booked before the show opens.

Call: James Elliott or Sumit Pal on +44 (0) 20 8877 0610

Email: enquiries@propertyinvestor.co.uk