WOW! It is estimated (2015 survey) that well over 3 million Spanish homes / houses are unoccupied. There are many reasons for this: held for future investment, unfinished urbs, unpopular areas, occasional holiday homes, derelict or failed projects, illegal builds, land-grab, etc. Many of these are still unoccupied since the financial crash in 2008. Not all are for sale or rent of course but there is a massive glut of homes across Spain, especially on the Costas.
It does now mean lower property prices and indeed it is a buyer’s market right now. Many who want to sell their Spanish property are finding that offers are well below their desired asking price (-25% – 40%). And here at Hondon Villas we know first hand that very few sellers in the Hondon areas get a price they want. And further, with the passing of time and on-line knowledge, all modern buyer’s are much more savvy in making “cheeky” offers and negotiating. Unlike the pre-crash market when we had to fight to get our dream home in Spain!
Be realistic about Hondon house prices
So, as facts are, it is best to be realistic and to expect a lower offer, especially if you want to sell quickly. We have seen clients refusing to budge on price or have a house on the market too high for too long (years) to find that the inevitable has to be done: i.e. to lower the price and magically more people are interested.
You may think you have the most wonderful home, tendered with loving care and hard-earned money but it is the buyer’s market. Of course we know people don’t want to give their homes away but the question is: Is it worth putting your life on hold?
Factor in relative prices or differing exchange rates
It might help your reasoning if you can factor in that if you want to re-buy in Spain then the national % reductions will also be relative to your next house purchase. So if your home to sell is about 25% lower than when you bought then a new home in Spain may be similar or more.
And, if you are returning to a non-Euro country like the UK perhaps the low Euro is now in your favour as opposed to when you bought years ago. E.G. The low Euro to the pound can mean significant difference when returning to the UK.
2006 : £200,000 sterling @ 1.46 would buy €292,000
2017 : €292,000 Euro @ 1.19 would now buy £245,000
As a basic example (not withstanding fees) and of course depends on the exact rates you bought at / sold at. And factor in the price reduction and just maybe there is still some profit or at least a reasonable break-even.
Need help selling your Hondon Villa or Hondon Valley Home?
If you wish to discuss your property situation or get a free valuation then please call into our Frailes office (in the Plaza)
or call our team Monday to Friday : (0034) 965 075 357.