Downturn in price

I heard last week that someone who had their 2 bed property for sale at 125 ,000 Euros  accepted an offer of 85,00 !

Acapulco: "I heard last week that someone who had their 2 bed property for sale at 125 ,000 Euros  accepted an offer of 85,00 !"

WHERE??!! Even assuming it's 85,000 and not realy 85 euros, sounds like a steal to me. If it's in Acapulco, I'll be checking to see if Ryanair go there!

Moths? I thought they use pesos there?

Just checking Ryanair Malaga to Glasgow - will get back to you.......

Based on what information??? Asking prices which are way over anyway, or declared value prices, or bank valueation prices or actual accepted prices

The stats here are a joke!

Prices have been declining sice 2003 if truth be told and earlier than that I knew of a multiple investor who could not shoft his units before completion!

Asking prices tend to be picked out of the sky and based on nothing, just what someone would like to get and the agent adding their usually 7% commission and vat on, plus a bit for negotiating. Thats the general rule of thumb.

A proeprty is only worth what someone else is prepared to pay for it. Same as any other commodity.

Developers are dropping like stones and their prices are below when they originally sold them off plan in some cases. or selling for the finance outstanding, in cases this works out to 59% of the actual bank valuation.

Main problem Im finding is lack of stock at the right price where the figures stack up - and thats actually because while the banks were more than happy to lend to anyone in the past, no problems black money, underdeclarations et al, now they want so much paperwork and only give 70% of valuation or purcahse price depending on which is lower. Therefore owners have to sell at about 60% of bank val.

Trouble is, bank vals have come down, meaning many highly geared owners are in negative equity now. Therefore unsaleable and going to repossession. Banks are then sitting on them in many cases at higher prices than I have similar ones for! Total madness.

No shortage of buyers though!!

Shouldn't this thread be merger with the "Bargain Property Experiment"? I propose a hostile takeover bid!

Rixxy, no shortage of buyers? Do you mean, no shortage of dreamers and lookers? At what point does a propspect become a buyer? Surely not until they buy? Nobody is buying though, right? Therefore, BIG shortage of buyers.

Property is only worth what someone is willing to pay for it. Agree. Normaly, but if that's the case, ALL property is apparently now worthless! Someone forgot to tell sellers this. Is it just possible that nothing is selling because at the moment, nobody is willing to pay what it's worth?

Whilst I won't deny that some prices have come down, declining since 2006, or 2003 even? Again, someone forgot to tell anyone around here. Certainly, they are not shooting up like before, and OK, some new builds around here are now offering to throw in a fitted kitchen, or even a garage place for free (therefore reducing the price in real terms whilst not affecting valuations) I still haven't noticed the wholesale slashing of asking prices that some seem to have. Perhaps this is only happening on the sprawling new urbanisations on imaginary golf courses in the middle of nowhere without a street lamp in sight, but with lots of glossy brochures in English sitting in an office collecting dust. I've always been critical of this type of development and never understood fully the attraction of them to anybody, and have always stuck to my opinion that buying in a long established, mature area with full infrastructure (even if the drainage is crap and the garage floods at the first hint of heavy rain!) is a safer bet. The fact that prices in such areas have not dropped noticeably suggests that sellers in the same such areas think the same. Again, pity nobody remembered to tell the propspective buyers that! Long live Torremolinos!

Hi Roberto

Just goes to show us Welsh Estate Agents could sell sand to the Arabs  .