Is Now The Time to Buy or Sell ??

There are currently many media reports suggesting the market is very cheap & represents a great long time buy (examples of new 2 bed apartments on Costa del Sol <100,000E are often cited).

Other reports suggest the Spanish property market still has another 20% - 50% to fall given the massive oversupply, high unemployment etc.

Frankly,  I have much more faith in the opinions of you guys on the ground instead of newpapers trying to sell a story !! Therefore:

1) Is it a good time to buy for the long term & why ??

2) Is it now prudent to sell & why ??

Regards,

Harry

 To Buy.....absolutely

To sell....Absolutely not (unless circumstances dictate)

Harry, when you consider Georgia's reply remember that he is an estate agent.

 

 all the more reason to listen John 

When you consider John's advice remember he is an ex copper 

 I presume your comment was reflecting my 25 years experience and also my exemplary character as a proffesional estate agent and was suggesting my advice was taken as such?

after all comparing us both to the rather unsavoury side of our equal proffesions would be a little preconceptional?

It's really very simple...

If you really have to sell...there are more people looking to buy than there has been for a few years (knowing they can get what they want for far less than they would have had to pay)....so you might get lucky if you are realistic about prices.

If you are looking to buy, prices are (as mentioned) far lower than they were at the height of the market.  Also, as mentioned, prices will almost-definitely fall further...although no-one really knows how much further....so, if you aren't in a hurry to buy, wait a while.  UNLESS....you see something you really want now and can get at a reasonable price ie; at a price you are willing to pay given the fact that you will have done your research and know what a 'reasonable' price is.

Hi

it seems to me if agents are saying its the time to buy, but are puttting off people who are thinking of selling. then all thats left is the rubbish nobody wants.

I believe that Spain has an awful long way before it gets close to sorting itself out, and because of this property prices will keep falling and unfortunately more people will have to sell or have homes repossessed. Its not nice but, just look at other euro countries and some parts of the UK.

 Georgia

I stating that it would be unusual for a fishmonger to call out,  ‘rotten fish for sale’  

 If a police officer were say saying something specific about a police service,  of course one would want to consider the possibility of bias

So how much more to fall & how long till we reach bottom ??

Tough questions I know !!!

Harry

The most successful estate agent we ever had the pleasure of dealing with absolutely refused to take property onto his books if the seller expected him to advertise it at an unrealistic price (ie; way over his valuation....which was very-well informed as he kept a keen eye on property matters in the area).  He was often told by prospective sellers, 'Well, so-and-so estate agent valued it much higher than you have'.  His reply was something like, 'So-and-so estate agent wants your property on their books and giving you a high value might get them the deal.  If that's the price you want to put on your property, choose so-and-so estate agent and I hope it works out for you.'  More often than not, after having their poperty on the market with the other estate agent for 18 weeks and getting no offers, the seller would come back to our favourtie agent and say, 'You were right.  Could we put our property with you now?'. 

In my opinion, a good estate agent will know the market value of a property and should insist that all properties on his/her books are realistically priced to reflect this.  It's the wildly-different prices on same-type properties in Spain that helps to confuse the buyer.  But, what can be done about this?  As we are told so often...this is the way it's done in Spain.

 Sell ?  It is pretty much impossible to sell anything right now at a reasonable price, if you have to sell you'll have to accept what they offer, if not it is best to wait, but it will be a long wait.

Buy? Definately the best ime to buy, yes it is possible that prices may fall even further but then there are properties that will not fall any further no longer how long you wait and those are the properties held by Banks in repossessions. Right now if you want to buy a property you're better off going to a Bank. They have all turned into estate agents now and have hundreds of thousands of properties available at cut down prices just to get them off the books. 

 I viewed and committed to buy my house in May this year.  Good time?  bad time?  Who knows.  I was in the fortunate position of not HAVING to buy on that trip - if I hadn't seen what I wanted I'd have gone away and tried again a month later with a different estate agent and a different set of properties.  As it was, I was lucky that the second of four properties I viewed that day felt like home from the moment I walked in.

As for the price, well nobody ever knows if they paid the right price, really, do they?  I know how much it was listed on the owner's own website, I know how much less it was listed on the estate agent's website, I know how much less than that I offered (on the estate agent's encouragement to "put in a silly offer", and I know that the owner pushed me back upwards by 5,000 euros (presumably to save face), and I know I would have gone higher.

So when I went in to the insurance office and was asked "How much is it worth?" I could only laugh and say "Who knows?"  To me it was worth 5,000 euros (or maybe more) more than I paid.  To the seller, it was worthless until I came along, as he needed to sell his two properties in the village to fund the capital developments out at his new business (converting a finca).

But I must say, it was an estate agent on here (not Georgia) who published a story encouraging us to "put in silly offers" that gave me the confidence to offer a third less.  Could I have got it for less?  I'll never know.  In the end, it's for living in and therefore as long as I'm happy with what I paid, it's all fine.  Different for folks doing it for investment or letting or whatever.

its a difficult one at the moment.

For example you can have 2 houses in the same street,one at 70,000€ and one at 80,0000€, exactly the same property,one has reached the bottom the other is yet to fall 10k.

I have this scenario several times over on my books,so the answer is yes and no.

For some property the market has reached rock bottom.

The reason i do not tell people to put their property on the market unless they have to is because 1.they will lose substantially and 2.they face stiff competition from people who HAVE to sell!!

 to add..on Bank repos.....i have been asked by every bank in Spain to sell their property,i always refuse,disaster waiting to happen!!

I find that a surprising comment especially from a profession estate agent of 25 years.   

 Something could happen tomorrow which might mean the value would fall again.  

If one could be 100% certain then it would be the exact time to go out and buy everything one could, with loans up to the hilt,  as one could only win.  But I do not think I will take that route,  just yet.

 goergia, re. the banks why is it a disaster waiting to happen? They have properties a low prices aren't looking for the profits that private sellers are looking for so they main interest is to sell and recover cash. A friend bought one not so long ago from a bank, amazing price, no problems.  Am I missing out on something here? Are there any hidden problems one should be aware of?

 its an opinion John.

Secondly what institution would lend you the money???

If you are lucky enough to have 50% of the purchase then great.

The only way you know that a property has reached the bottom is when it goes up!

I sell apartments from 35,000€,how much do you think that they cost to build??? hence the bottom!

The bottom could last for 10 years......that would make your money making scheme look a little tainted if prices level for that long??!!

Quote   The only way you know that a property has reached the bottom is when it goes up!

That was my point when you said  "For some property the market has reached rock bottom.
 

It can only be a guess, albeit, maybe an educated guess when made by an Estate Agent

?????

"I sell apartments from 35,000€,how much do you think that they cost to build??? hence the bottom!"