Selling Property in Spain: Pricing
Once you have decided to sell your property you will ask yourself what price you can achieve. You probably have an idea of the value of your property. You may happen to know that your neighbour has sold his house for a certain figure. These will be a good reference and there are issues that a professional evaluator will also take into account when estimating the value of your property. You may also know how much it will cost to build a new property like yours. This is called replacement value. You may also be aware of prices being asked for properties similar to yours in comparable locations. All of these considerations are useful in determining the price you may request for your property.
If you decide to engage the services of a real estate agent, you will want to know what he thinks of your property and have him assess its value. Most likely the agent will apply the criteria mentioned above. He will estimate the replacement value of your property and its present market value. He will use examples of comparable properties which may be offered for sale at the time or which have been sold lately. In case of discrepancy between your estimated value and that of your agent, we at DM Properties always recommend obtaining an official valuation from an independent firm of valuers.
This valuation will cost a few hundred euros but is most useful if you wish to apply for a mortgage loan on your property. You may use this loan to secure the purchase of another property whilst yours is being sold, or transfer it to the buyer of your property to help him accelerate the purchasing process.
If you wish to have more information on the methodology of property valuation, please read our article on Valuations. Please bear in mind that the price you will request for your property, known as the asking price, should include the agent’s fees as well as some room to allow you to consider an offer somewhat inferior to the price.
Fixing the right price is also important to reduce the time your property will be on the market. Some sellers argue that they are in no hurry and that they would prefer to wait to obtain, theoretically, a higher price for their property. However, they must know that the property runs the risk of “going stale” if it is too long on the market, producing the opposite effect. Buyers tend to give low offers when a property has been on the market for a long time.
A serious real estate agent must make the seller aware of the disadvantages of asking the wrong price and will advise him to postpone the sale of the property only if he is fully convinced that prices will go up in the future and he is willing to wait.
The property must be offered at the right price. This is the price the property can be sold for in a reasonable time period, which will depend on the current market conditions. In determining this price you must also bear in mind that a great number of properties are holiday homes or the homes of semi-permanent residents. Thus, many buyers on the Costa del Sol have no urgency in acquiring a new property.
08/07/2008 News and Articles