With euro currently trading at ?1.04 to the pound, the effect on property sales in the Costa Blanca is causing many estate agents and builders to go out of business. The knock on effect is felt through not only the expat community but also the local Spanish community. Property prices are going down in the Costa Blanca and by how much it is hard to tell as still a lot deals are performed in part by cash and therefore not registered in the statistics, however from our observations we estimate that prices are down between 5-10% on this time last year.
Many estate agents in the Costa Blanca have closed their doors for business as large numbers of expats return to the UK. A great number of these focused solely on the UK market and as the economy has taken a down turn so buyers have stopped looking overseas for their investment property.
We recently spoke with a local Spanish removal company who stated they have "never known business to be so slow," so slow in fact that "our next work is currently booked in for March". In a local Alicante builders merchant there is an advertisement by a Spanish builder touting for business at ?6 per hour and even a local English builder we know has absolutely no work at all - the first time in 6 years with no work and not a lot of prospect either. Driving through a village outside Alicante, which is known as the pottery capital, you will see brick manufacturers with their yards stock piled full of bricks as the developers stop building.
Tourism is also down as people are suddenly finding that their pound does not go as far the result of which is that the expats that have purchased and relied on a rental income are now in serious trouble and looking to sell.
A local client of ours in Alicante asked us about house {{{exchange|swap))). They have a property in the campo and wish to move into an urbanisation near to Elche - with few buyers in the market place they are not expecting to sell anytime soon. House swapping is not common in Spain and as a result we are now looking into amending our web site to accommodate people who wish to exchange their property as an alternative to selling.
Are things as bad as they seem?
If you want to sell quickly then a strong euro is not your friend, especially if you are trying to sell to UK expats, we would advise that you read our article on "How to sell your property privately" to assist with your sale.
If you do manage to sell then no doubt you will have either dropped the price of your property to sell it or you priced it correctly for a quick sale in the first place. This is not necessarily a bad thing as if you are transferring the funds back to the UK then you will be quids in as the exchange rate suddenly becomes your best friend. If you sold a property for ?300,000 a year ago you would have received ?210,000 to ?225,000, but now you will receive ?280,000 to ?295,000. Remember to use a currency broker to get a preferential rate and don't forget to shop around to get the best deal. If your decision is to remain in Spain or to go to a Euro zone country then you are in a great position to negotiate a fantastic deal on your next property.
Times are going to be hard and no doubt we will see more agents, developers and builders going out of business before things get better, but this does not mean that you cannot sell. Price the property accurately, market the property effectively and you will find a buyer.
We recommend that you visit Kyero and obtain their Spanish house price index to identify the price of property in your neighbourhood.
Delinquent Tax Property Sales
Property sales can seemingly take forever, especially in the current market where many people are waiting for a drop in prices before they decide to purchase. There are however certain strategies that when employed can speed up the sales process and reduce the time your property spends sat on the open market. Here are some of the best tactics, strategies and ways of thinking that will ensure a quick sale.
First and foremost you should try and think like a buyer. This is more difficult than it sounds as you must look around your house in an objective manner taking note of any issues that may put buyers off. If you can do this however you stand more chance of pursing sales quickly.
Once you have made your list it is vitally important to make any repairs that can be deemed necessary. These repairs can be minor jobs like a smashed window pane to major works like retiling broken bathroom tiles or the roof. While buyers may not notice all of the work you have undertaken, it is a surety that they will notice any repairs left unfinished.
A strategy often touted by property experts is to de-clutter as much as possible. This is because the less clutter there is, the easier it is for buyers to notice the house and hence understand what they are buying. In addition de-cluttering can help to create a feeling of spaciousness, making the property look larger than it actually is.
As part of the space tactic is to make all of the rooms as well lit and bright as possible. Lighting can be considered an extremely important element to a property, it is strongly advisable to make the most of the natural light in a room but if this is not possible, recessed high powered lights can help to make rooms lighter and more appealing.
When a buyer walks through the door all of their senses will be used when viewing the house. Subsequently smell is an important factor in the property sales process. While the home baked bread cliche may be an overused tactic, ensuring that the property smells fresh is essential. Removing the odour of pets and smoke is a prerequisite.
As part of your de-cluttering efforts you should remove all of the personal items from the property. These can include family pictures and ornaments which while you may love them, does not let buyers see themselves living in the property.
When you are rearranging your furniture you need to do it in such a way so that it makes the best use of space ensuring all of the rooms look open and welcoming. As part of this it is important to put furniture in places where it will not impede traffic through the house.
The term 'curb appeal' is often bandied about by experts but remains a valid point if you want to sell quickly. To create this curb appeal you should mow your front lawn, ensure all windows are painted, the front door is well maintained and in general the house from the street looks appealing.
Painting is great way to revive the look of tired rooms and even the exterior. It may take an investment of time and money but the rewards will be ultimately worthwhile. Remember however that the paint is not your personal preference; neutral colours should be used so buyers are not overpowered when they enter the property.
Hopefully these tips and tactics will help ensure the quick sale of your property. As long as you price it correctly and are willing to negotiate speedy sales should be achievable. Ultimately you need to make the most of your property's assets; whether this means redecorating or just giving the place a spruce up is indeterminable. What is important is that you present a property to the buyer that is appealing and allows them to imagine themselves living there.
Both Property Byowner & Thomas Pretty are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Property Byowner has sinced written about articles on various topics from Property Sale, Property Guide. Look at web site for advertising your property anywhere in the world.Author: Micky Davies of Online Property Sale Published from. Property Byowner's top article generates over 5400 views. to your Favourites.
Thomas Pretty has sinced written about articles on various topics from Formula One, Debts Loans and Interior Design. Real estate expert Thomas Pretty looks into ways to speed up by employing various tactics and strategies.. Thomas Pretty's top article generates over 1500000 views. to your Favourites.
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