How much to offer to purchase an appartment in Denia? - Page 3

Cookep1 wrote on Fri Aug 14, 2020 4:42pm:

As others have said, you need to do the research. 

Firstly it's difficult to comment without knowing the details: Is the realtor the seller, an agent or the builder (new property)? What have similar properties actually sold for? How long has this property been on the market? But at the end of the day be realistic. ...

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My experience might help explain: 

I bought my original property in 2005, like Pauline hight of the market. After the financial crash in 2008 the market in Spain dropped 30%+. I moved in 2015 putting my property on the market at 85% of my original purchase price, excluding fees & enhancements, hoping to achieve ~80%. I sold within a month at 73%.

BUT the property I bought was on the market at ~60% of it's original sale price AND about 85% of market value. I did make a cheeky offer 5% below the asking price, which needless to say was rejected, but the seller did reduced his price by €1000. 

Paul

forampaleo wrote on Sat Aug 15, 2020 11:52am:

Sorry to shock some of you, but as Pauline noted, she can get only 60% of what the paid at the height of the market. I have the feeling some owners are listing at near what they paid, and in this case an offer of 30% less is a good offer (e.g. 10% more than what they would expect to get) . As a b...

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...uyer, I must think like a buyer and try to make a good investment for my future as it seems real estate will slow with the European economies. I do have sympathy for these sellers, myself having been in the difficult position to sell in a down market, but it is not my intention as a buyer compensate for the misfortune of others.

My objective with my question was to understand what a fair current market offer might be and how to determine if the list price is the price paid at the top of the market or a realistic selling price. When I see the same property on the market for 3 years, I tend to think it is priced a little high.

Also, how do I find out what other properties in the are sold for?  Are real estate agents the only source of this information? In some places you can search for the information online, in others the realtor will give you a printout of recent sales in the area....how might you get this information in Spain/Alicante?

and to help keep positive vibe going....thanks for all the comments and good luck to all you sellers in finding the right buyer!

forampaleo wrote on Sat Aug 15, 2020 11:52am:

Sorry to shock some of you, but as Pauline noted, she can get only 60% of what the paid at the height of the market. I have the feeling some owners are listing at near what they paid, and in this case an offer of 30% less is a good offer (e.g. 10% more than what they would expect to get) . As a b...

Read more...

...uyer, I must think like a buyer and try to make a good investment for my future as it seems real estate will slow with the European economies. I do have sympathy for these sellers, myself having been in the difficult position to sell in a down market, but it is not my intention as a buyer compensate for the misfortune of others.

My objective with my question was to understand what a fair current market offer might be and how to determine if the list price is the price paid at the top of the market or a realistic selling price. When I see the same property on the market for 3 years, I tend to think it is priced a little high.

Also, how do I find out what other properties in the are sold for?  Are real estate agents the only source of this information? In some places you can search for the information online, in others the realtor will give you a printout of recent sales in the area....how might you get this information in Spain/Alicante?

and to help keep positive vibe going....thanks for all the comments and good luck to all you sellers in finding the right buyer!

Cookep1 wrote on Sat Aug 15, 2020 12:39pm:

Goid morning forampaleo,

In answer to your post, it's down to doing the research. I looked at the market in depth before deciding my selling price, so I had a good idea what the market price was. That's why I put my house on the market 20% below what I paid. Yes it represented a loss, but all the properties for sale were...

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... in the same position so I lost on the sale but gained on the purchase. I also bought both properties as holiday homes for my family, and occasionally friends, to enjoy; I have never rented them out. So I wasn't looking for an investment opportunity.

Finally as regards market value. If all the similar properties in the area are being advertised at roughly the same price, then it's likely that is a hood indicator of market value today. Agents will advise sellers against unrealistic sale prices as they want to sell houses, and builders tend to be realistic in their pricing too; both allowing for an offer 5-10% below then negotiate to agree. You do get the odd outlier, obive/below, but you can usually spot these.

It's not clear from your original post if the property you're looking at is a new build or one being sold by the current owner, but if it's an existing property what the owner may or may not have paid for it previously is irrelevant; current market value is what matters.

Paul