A client emailed me today with the following question.
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Dear Andrew
I know that my neighbours have made a savage cut to the asking price of their flat 120,000 Euros – I think it is on your books too, while my other neighbours are asking 135,000 Euros for theirs, which I think you also have on your books.
So – what do we have to ask to actually get some serious buyers who are able to proceed?
I know I’m prejudiced, :-) but I think our place is nicer and better equipped than either of those two, but of course it’s a question of getting punters to look!
We would be grateful for your advice.
Regards,
A Concerned Spanish Property Seller.
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So here was my answer
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Dear Concerned Seller.
Dear Concerned Seller.
Yes we do have one of your neighbours apartments for sale at 120,000 Euros and another on at 135,000 Euros. I agree that your’s is possibly nicer but it’s ALL about the price in this market. I’ve shown a few clients but no takers even at these prices.
One thing that I have learnt over the last 3 years is that in order to sell you need to be one step ahead of the market. What do I mean by this?
I’ll explain with a made up example on Duquesa Village.
In 2007 the market rate for a 2 bed apartment was 190,000 Euros, so anyone who went in under the market in 2007 and sold for 170,000 Euros would feel that they’d been hard done by. Today they’d be laughing.
In 2008 the market price had fallen down to 170,000 Euros, so anyone who went in under the market and sold for 150,000 in 2008 would have felt that they’d been hard done by. Today they’d be laughing.
In 2009 the market price had fallen down to 140,000 Euros so anyone who went under the market and sold for 120,000 Euros in 2009 would have felt that they’d been hard done by. Today they maybe not be laughing but they would have sold!
Roll on to present day 2010- what is the market price of Duquesa Village? The market price is the price that the seller is willing to sell and the buyer is willing to buy. We have the example of one neighbour at 120k and another at 135k and a few others that have sold at or around these prices. So in order to sell your apartment you will need to go under these prices.!
Up until now you have been following the market with a delay.
In 6 months time when the market price is 90k-100k you will have wished that you had sold for 110k. It is a VERY difficult decision to make but in my personal opinion – in order to SELL you need to be bold and BEAT TODAY’S market price. We do NOT know what the price will be like tomorrow.
Any questions- just ask. I hope you don’t find this example too depressing
All the best
Andrew