A SHARP rise in the number of fixed-rate mortgages in Spain has been reported in the past two years – and they now account for 43% of every new loan taken out.
Experts' tips for selling your Spanish home in less time
02/05/2023
HOW long does it take to find a buyer for a residential property in Spain?
According to industry experts, the average is around five months, but that depends partly upon where it is. Demand is much higher in city centres and inner suburbs, for example; a home for sale in Madrid will typically only take about three months to shift.
These data, for the year 2022, come from Solvía, the estate agency arm of Banco Sabadell, which was bought out by Swedish firm Intrum at the end of last year.
The Solvia Market View figures show little change over time, so the standard nationwide five months in 2022 is not due to any major surge or fall in demand.
Some unique features of Spanish property buyers
Unlike in many countries, the typical 'first-time buyer home' is not necessarily going to be snapped up in an instant. National Statistics Institute (INE) figures released last year show that the usual profile of someone buying their first property is much older than in, for example, northern Europe or North America – usually in their 40s, often with a long-term partner or spouse and dependant children.
This is because the trend in Spain is to wait until they can afford their 'forever home' – one that they do not expect to ever sell. The concept of 'buying small' to 'gain a foot on the property ladder', then progressing in size, is far less common among first-time buyers in Spain.
Around 65% of Spain's residents live in flats or apartments rather than houses – the second-highest proportion in Europe after Latvia (66.2%) - and well over three-quarters, nearly eight in 10, own their homes rather than renting.
Rental properties are more likely to be seasonal – for the summer, and based on urbanisations with swimming pools or right next to a beach – or in large cities where young adults, normally in couples, have had to move to for their jobs.
That does not necessarily mean you should forget about renting your home instead of selling it if it is in another area, or you need long-term tenants. Future buyers may well decide to rent for a while until they find the home they definitely want, or to make sure they like the area before committing. Also, those whose income is sufficient to pay rent but not enough to save for a sizeable deposit may not be candidates for buying, or perhaps they prefer not to own their home so as not to have to worry about maintenance and repairs.
Given how only a third of Spanish residents live in houses, even villages have large numbers of flats, not just big towns and cities, and these are often very spacious and can be even more expensive and luxurious than a house.
Another key aspect of the Spanish homebuying market is that, according to research, the overwhelming majority seek properties within the town they grew up in, where their families live, or even in the same neighbourhood; those who cannot find what they want will typically look as close to their local area as they can, perhaps the very next town or village.
Estate agencies offer a wider audience – often international
Whilst taking a stroll around any town in Spain, it is very common to see handwritten signs up in windows reading 'for sale' with a telephone number. Small communities with limited family mobility mean word of mouth has often been how homes are sold, particularly among those who want to save money on estate agents' commission.
But industry experts urge anyone wanting to sell – unless they have no timeframe in mind – to use an agency, especially one with an online presence, an international clientèle, or both.
The advantages here are obvious: A wider audience, including overseas buyers who may have a different criteria in mind to local viewers; perhaps a holiday home, an investment property, or simply a change of scenery. Small, remote, rural villages may not be convenient for families with young children, or working-aged adults, but might be exactly what a foreign city-dweller would love as a peaceful retreat for long weekends and holidays.
A further incentive to using an estate agency is that industry professionals sometimes 'network'. Companies which work closely together, or colleagues in different agencies, might 'share' details of advertised homes with each other. For example, if Agency A knows that Agency B has a much higher demand for a specific type of property, or has clients actively seeking a certain style of home which they do not yet have on their books, then Agency A may contact Agency B and tell them they have found something that may be just what they are looking for.
'Attractive' description and professional photos
Estate agents' commission varies greatly – Solvia says you can expect anything from 3% to 7%, depending upon the service provided, local market trends, and the type of property; in periods when property firms have been actively seeking new business, such as during the years of almost zero demand through and just after the recession, commission has been as low as 0.5% to 1%.
But you do not only gain the advantages of a much larger and possibly global audience. Estate agencies are experienced in marketing homes, or making them sound as attractive as possible to the right type of buyer. And, of course, if you just put a 'for sale' sign in the window, nobody knows what it's like inside, how many rooms it has, or whether it's within their budget. Most buyers don't want to spend a lot of time phoning a list of numbers they've jotted down, only to find out that the majority of the properties they've seen are the wrong type or too expensive.
One example of estate agency services you get for the commission fee is the description the professionals give of it in the advertisement. If you've lived in your home for many years, you may have lost sight of what's really good about it. Sellers who do not have children may never have thought about whether their home is in the catchment area of a sought-after local school, or a safe and short walk from it. If you walk everywhere, it might not have occurred to you that parking facilities, on- or off-road, or availability of affordable garage rental nearby is better where you live than in other parts of your area. Conversely, if you use your car for all travel, you may never have bothered to check out public transport options, which might be particularly convenient, regular and cheap where you live.
You probably don't notice the view from your windows any more, or what direction the sun comes in and hits your terrace, garden or balcony; estate agencies, however, will pick up on these factors and highlight them.
Additionally, an estate agent knows which of these and other factors are widely, or less-widely, available in your area. Perhaps you've always assumed everybody else's home is energy-efficient, well-maintained, with guaranteed parking outside and just a few metres from the nearest shops – yet these elements might be something relatively unique to your own property, and could prove an added attraction to a potential buyer, or even justify a few thousand extra on the price.
Using an estate agency normally means excellent-quality photographs of all rooms, land, and inner and outer parts of your property and its facilities. In some cases, it might even include an online 3D tour of your home. According to many industry professionals, up to 80% of would-be buyers are influenced in their viewing choices by the pictures, meaning the best possible snapshots could be your greatest ally when it comes to reducing the amount of time your home languishes on the market. Where an estate agency does not offer a photo report service – perhaps if they are online-only, or based a long distance away – you should seriously consider contracting a professional photographer's services to show your home to its best advantages.
Make your home inviting to viewers
Photographs and descriptions tie in with giving buyers the best impression of your home, and factors that influence this may not be what you'd expect. Property industry specialists stress that a home that looks attractive from the pavement is more likely to draw in viewers, so investing in a full repaint on the outside – not just the inside – could pay for itself.
Simple factors like cleaning the windows, repainting or re-varnishing shutters, hanging clean and attractive curtains, polishing door handles and, if you have any land attached, keeping pathways swept, gardens and hedges trimmed, and blown lightbulbs indoors and out replaced, as well as displaying colourful flowers and plants in balconies, can all make a difference.
Repairs, maintenance and tidiness indoors are crucial, too – both ahead of the photographs being taken and prior to any viewings. Paint or varnish which is scratched or chipped should be repaired, loose tiles stuck down, loose door handles tightened, and dripping taps fixed. Gaps or cracks should be filled, soft furnishings washed, and all surfaces cleaned – including light switches. Where these were once white plastic but have now gone yellowish, you can either replace them with new ones very cheaply or, if you are not overly skilled with a screwdriver, use very fine sandpaper on them to remove the stained surface.
Clear away or hide any 'clutter' before the photos, or before viewings. A few items around to give a 'homely' impression are recommended – an estate agency can advise you there – but if your walls are full from floor to ceiling with family pictures or every shelf is packed with ornaments, it is better to remove them. Whilst you don't want your home to look cold and characterless, you also don't want it to be too much like a personal shrine to your own life. It should be attractive and inviting, but largely a blank canvas for the new owner to put their personal stamp on it.
Likewise, removing 'clutter' can help create an illusion of more space – as can rearranging the furniture in a strategic manner.
Finally, home-selling experts recommend you be as flexible as you can about viewing times. It may feel inconvenient to have potential buyers scrutinising your rooms in the evenings when you're desperate to start cooking the dinner, or at weekends when you just want to relax on the terrace or sofa, but if someone is only able to view homes outside their working hours, or after school hours, or perhaps during a short stay of a few weeks in Spain if they live abroad, they need to be able to see yours. If you cannot offer a suitable viewing time, then another homeowner seeking to sell probably will – and it'll be theirs the viewer buys instead of yours.
Price is key to a sale
All the above advice is fine if you are actually getting viewing requests. But how do you get would-be buyers in the door in the first place?
There could be many reasons why your home has been on the market for months and nobody has asked to look at it. Maybe near-identical properties for sale at a similar price have facilities yours does not; as an example, flats above ground-floor level, and certainly above the first floor, will command a much higher price if they have a lift. Investors seeking bargains are more likely to be attracted to that fourth-floor apartment in a block with only stairs, since it will probably be very cheap, however attractive it is otherwise.
Price is usually the biggest factor for buyers. Those who do not have to worry about budget restrictions can, in theory, command any level of luxury they want, and unless your home is particularly unique or is in an area with extremely low supply and very high demand, you need to make sure you are not asking too much.
Conversely, asking too little might be off-putting, since an astute buyer will automatically think, what's the catch? You don't want home-searchers believing there 'must be something wrong with' your property that drives the price down.
Setting the asking price: The common mistake you should avoid
When it comes to pricing decisions, estate agencies strongly recommend would-be sellers allow them to carry out a valuation. You can ask several agencies to do so, and then compare the results, and perhaps look at online valuation tools, too. But it's important to advertise your home as close as possible to the market price.
Valuations normally give an upper and lower price range, and industry specialists concur that the biggest and most common mistake sellers tend to make is to market their home at the top end of this bracket.
Even though their aim is to try for the highest figure on the basis that this gives them greater margin for accepting a lower offer, the reality is that their property will be overlooked. Would-be buyers will ask to view similar, or near-identical, homes to yours that are on sale for less. As a result, your home will take longer to sell, and you will probably end up having to drop the price anyway.
Effectively, even though potential purchasers know they will probably be able to make an offer below the asking price when they see a home they are interested in, they do not tend to take this into account at first. Human nature dictates they will focus on asking prices they can already afford when deciding which properties to view.
Sellers need to take into account how far they can afford to take an offer. The drop in price a homeowner is willing to accept might be influenced by how quickly they want to hand over the keys, or perhaps if it is a home they have inherited rather than being their main residence, and they are keen to liquidate the asset without further ado.
This said, if you are not looking for a very quick sale, you do not necessarily need to be pressured into accepting an offer well below what you have advertised your home at, estate agents say. Where a property is on sale for a figure that correctly reflects the market for its type and location in accordance with the valuation carried out, the price it is bought for does, in most cases, tend to coincide.
In other words, market your home at the right price, and it's likely this is what you'll actually get for it.
By contrast, starting too high and reducing the price again and again may give a buyer the impression you are quite desperate to sell, and could attract offers considerably lower than you are willing or able to take. Whatever figure your home is advertised at, you should feel confident that this is actually what it is worth.
Should you reduce the price to speed up the sale?
How do you decide when, or if, to reduce the price?
Normally, the estate agency will be able to advise you what's best; if your home is advertised at a correct figure but is still not selling and you're keen to get moving, they might say it's time to offer it for less. Or, on the contrary, they might say it's not worth cutting a couple of thousand euros off the asking price, as doing so would not really influence the target buyer and would simply mean you get less than you want.
This might be true where, for example, a buyer has a high loan-to-value mortgage over a long term, perhaps 20 or 30 years or more. Depending upon interest rates at the time of selling, reducing a price by €1,000, or €5,000, or even €10,000 may only make a difference of a few euros a month to mortgage repayments. That may not be enough to change buyers' minds; if an extra €20 or €30 a month means they can get a home that's much more suitable for them, a relatively small saving will make little difference.
On the other hand, seeing a price reduced can be a psychological incentive: The buyer thinks they are getting a 'bargain'. Your estate agency will be able to advise you better on which of these is most applicable to your specific property, however.
Property sales professionals recommend you decide on a timeframe, based upon how quickly you want to sell. Set yourself a specific date upon which, if you have not sold your home, or not had any viewings, you will reduce the price. You don't need to work out, at this point, exactly how much you will reduce it by; once the deadline you have decided upon comes, you can then talk to the estate agent.
It's possible that, by then, you may have had some viewings but no offers, or that people have looked at the details of your home as advertised and chosen not to view it. Whether, and by how much, you lower the asking price might be influenced by these people's comments about your property; maybe any negative points that have put them off are something you can remedy, without having to accept less money. Perhaps a high number of actual or potential viewers have been discouraged by the fact your home needs redecorating, the garden is overgrown, or it does not have air-conditioning, and they don't want to bother with the extra work or expense involved. You might find that by rectifying these aspects, you start to get offers close to the asking price.
'Added extras' may encourage sales
Sometimes, extra incentives can help sell your property quicker without having to drop the price. You could offer to include all domestic appliances, or sell it 'furnished', especially if said furniture is of good quality. Or, if there are repairs needed, you could offer to fund and arrange these for the new buyer.
Otherwise, you could offer to have extra facilities or features installed on demand. Perhaps a viewer has said your home would be perfect for them if only it had double-glazed windows, but that they cannot afford to have these installed if they pay the asking price. In a case like this, you might decide it is worth agreeing to sell to the viewer at the advertised price and to arrange and pay for double-glazed windows yourself.
You may also decide to pay any outstanding taxes, or fund any upcoming taxes, due on the property, or cover lawyers' fees, for example. Even though the actual cost to you might seem too small to prove a real attraction, it could be that the psychological effect of 'bonus extras', or of having 'one less job to do' in the typically-busy task of moving home, is a welcome factor.
Which areas of Spain see the quickest sales?
As a general rule, major cities with good transport links and job opportunities see a much higher rotation of residential properties, estate agency experts say, but outside of these, the most buoyant markets at any one time are the traditional Costas.
The provinces of Alicante and Málaga – whose coasts are known as the Costa Blanca and Costa del Sol – as well as that of Almería are said to be the ones with quicker home sales, especially among foreign buyers seeking to move to Spain, or foreign and Spanish buyers looking for a holiday home.
Although the Costas and Balearic and Canary Islands are typically the most sought-after areas nationally and internationally outside of the largest cities, this does not necessarily mean sales will automatically be swift. Many of the eastern and southern coastal areas also have a very high supply of properties, too. The homebuying market is much more active and dynamic in these areas, but there's also a lot for property-hunters to choose from.
Even within the same city, province or stretch of coast, selling times – and prices – can vary, say property professionals. An affordably-priced home in a commuter belt would probably sell much more quickly than one of a dozen homes on an urbanisation near a coast, since the latter has a greater supply and the offer is very similar. Certain districts in Madrid and Barcelona cities are currently being described as 'tense' or 'high-tension' areas – not because of negative aspects of the neighbourhood or community, but because of exceptionally-high demand coupled with prices out of the reach of those who seek them. In these, a price reduction may be more important to getting a quick sale than any 'added extras' or advantageous features the property has.
Likewise, in a very cosmopolitan area, the dominant nationalities of the other residents may influence how quickly a property is sold. Foreign buyers seeking a permanent residence or holiday home might be drawn to a given district because it has an established community of expatriates who share their language or culture.
This said, the opposite can also be true. Some very cosmopolitan areas did not start out that way, but became so because people of different nationalities wanted to live as far away from their compatriots as possible, experiencing full Spanish immersion – and then discovered that a huge number of their compatriots had had the same idea.
At the end of the day, though, property professionals all agree on one point: The speed at which a home is sold is entirely down to what the individual buyer wants in a given area at a given time.
After all, your home only needs one buyer to enable you to pursue the next chapter in your life – so it doesn't matter if you've had 20 unsuccessful viewings, as long as the 21st viewer likes it enough to buy.
Related Topics
HOW long does it take to find a buyer for a residential property in Spain?
According to industry experts, the average is around five months, but that depends partly upon where it is. Demand is much higher in city centres and inner suburbs, for example; a home for sale in Madrid will typically only take about three months to shift.
These data, for the year 2022, come from Solvía, the estate agency arm of Banco Sabadell, which was bought out by Swedish firm Intrum at the end of last year.
The Solvia Market View figures show little change over time, so the standard nationwide five months in 2022 is not due to any major surge or fall in demand.
Some unique features of Spanish property buyers
Unlike in many countries, the typical 'first-time buyer home' is not necessarily going to be snapped up in an instant. National Statistics Institute (INE) figures released last year show that the usual profile of someone buying their first property is much older than in, for example, northern Europe or North America – usually in their 40s, often with a long-term partner or spouse and dependant children.
This is because the trend in Spain is to wait until they can afford their 'forever home' – one that they do not expect to ever sell. The concept of 'buying small' to 'gain a foot on the property ladder', then progressing in size, is far less common among first-time buyers in Spain.
Around 65% of Spain's residents live in flats or apartments rather than houses – the second-highest proportion in Europe after Latvia (66.2%) - and well over three-quarters, nearly eight in 10, own their homes rather than renting.
Rental properties are more likely to be seasonal – for the summer, and based on urbanisations with swimming pools or right next to a beach – or in large cities where young adults, normally in couples, have had to move to for their jobs.
That does not necessarily mean you should forget about renting your home instead of selling it if it is in another area, or you need long-term tenants. Future buyers may well decide to rent for a while until they find the home they definitely want, or to make sure they like the area before committing. Also, those whose income is sufficient to pay rent but not enough to save for a sizeable deposit may not be candidates for buying, or perhaps they prefer not to own their home so as not to have to worry about maintenance and repairs.
Given how only a third of Spanish residents live in houses, even villages have large numbers of flats, not just big towns and cities, and these are often very spacious and can be even more expensive and luxurious than a house.
Another key aspect of the Spanish homebuying market is that, according to research, the overwhelming majority seek properties within the town they grew up in, where their families live, or even in the same neighbourhood; those who cannot find what they want will typically look as close to their local area as they can, perhaps the very next town or village.
Estate agencies offer a wider audience – often international
Whilst taking a stroll around any town in Spain, it is very common to see handwritten signs up in windows reading 'for sale' with a telephone number. Small communities with limited family mobility mean word of mouth has often been how homes are sold, particularly among those who want to save money on estate agents' commission.
But industry experts urge anyone wanting to sell – unless they have no timeframe in mind – to use an agency, especially one with an online presence, an international clientèle, or both.
The advantages here are obvious: A wider audience, including overseas buyers who may have a different criteria in mind to local viewers; perhaps a holiday home, an investment property, or simply a change of scenery. Small, remote, rural villages may not be convenient for families with young children, or working-aged adults, but might be exactly what a foreign city-dweller would love as a peaceful retreat for long weekends and holidays.
A further incentive to using an estate agency is that industry professionals sometimes 'network'. Companies which work closely together, or colleagues in different agencies, might 'share' details of advertised homes with each other. For example, if Agency A knows that Agency B has a much higher demand for a specific type of property, or has clients actively seeking a certain style of home which they do not yet have on their books, then Agency A may contact Agency B and tell them they have found something that may be just what they are looking for.
'Attractive' description and professional photos
Estate agents' commission varies greatly – Solvia says you can expect anything from 3% to 7%, depending upon the service provided, local market trends, and the type of property; in periods when property firms have been actively seeking new business, such as during the years of almost zero demand through and just after the recession, commission has been as low as 0.5% to 1%.
But you do not only gain the advantages of a much larger and possibly global audience. Estate agencies are experienced in marketing homes, or making them sound as attractive as possible to the right type of buyer. And, of course, if you just put a 'for sale' sign in the window, nobody knows what it's like inside, how many rooms it has, or whether it's within their budget. Most buyers don't want to spend a lot of time phoning a list of numbers they've jotted down, only to find out that the majority of the properties they've seen are the wrong type or too expensive.
One example of estate agency services you get for the commission fee is the description the professionals give of it in the advertisement. If you've lived in your home for many years, you may have lost sight of what's really good about it. Sellers who do not have children may never have thought about whether their home is in the catchment area of a sought-after local school, or a safe and short walk from it. If you walk everywhere, it might not have occurred to you that parking facilities, on- or off-road, or availability of affordable garage rental nearby is better where you live than in other parts of your area. Conversely, if you use your car for all travel, you may never have bothered to check out public transport options, which might be particularly convenient, regular and cheap where you live.
You probably don't notice the view from your windows any more, or what direction the sun comes in and hits your terrace, garden or balcony; estate agencies, however, will pick up on these factors and highlight them.
Additionally, an estate agent knows which of these and other factors are widely, or less-widely, available in your area. Perhaps you've always assumed everybody else's home is energy-efficient, well-maintained, with guaranteed parking outside and just a few metres from the nearest shops – yet these elements might be something relatively unique to your own property, and could prove an added attraction to a potential buyer, or even justify a few thousand extra on the price.
Using an estate agency normally means excellent-quality photographs of all rooms, land, and inner and outer parts of your property and its facilities. In some cases, it might even include an online 3D tour of your home. According to many industry professionals, up to 80% of would-be buyers are influenced in their viewing choices by the pictures, meaning the best possible snapshots could be your greatest ally when it comes to reducing the amount of time your home languishes on the market. Where an estate agency does not offer a photo report service – perhaps if they are online-only, or based a long distance away – you should seriously consider contracting a professional photographer's services to show your home to its best advantages.
Make your home inviting to viewers
Photographs and descriptions tie in with giving buyers the best impression of your home, and factors that influence this may not be what you'd expect. Property industry specialists stress that a home that looks attractive from the pavement is more likely to draw in viewers, so investing in a full repaint on the outside – not just the inside – could pay for itself.
Simple factors like cleaning the windows, repainting or re-varnishing shutters, hanging clean and attractive curtains, polishing door handles and, if you have any land attached, keeping pathways swept, gardens and hedges trimmed, and blown lightbulbs indoors and out replaced, as well as displaying colourful flowers and plants in balconies, can all make a difference.
Repairs, maintenance and tidiness indoors are crucial, too – both ahead of the photographs being taken and prior to any viewings. Paint or varnish which is scratched or chipped should be repaired, loose tiles stuck down, loose door handles tightened, and dripping taps fixed. Gaps or cracks should be filled, soft furnishings washed, and all surfaces cleaned – including light switches. Where these were once white plastic but have now gone yellowish, you can either replace them with new ones very cheaply or, if you are not overly skilled with a screwdriver, use very fine sandpaper on them to remove the stained surface.
Clear away or hide any 'clutter' before the photos, or before viewings. A few items around to give a 'homely' impression are recommended – an estate agency can advise you there – but if your walls are full from floor to ceiling with family pictures or every shelf is packed with ornaments, it is better to remove them. Whilst you don't want your home to look cold and characterless, you also don't want it to be too much like a personal shrine to your own life. It should be attractive and inviting, but largely a blank canvas for the new owner to put their personal stamp on it.
Likewise, removing 'clutter' can help create an illusion of more space – as can rearranging the furniture in a strategic manner.
Finally, home-selling experts recommend you be as flexible as you can about viewing times. It may feel inconvenient to have potential buyers scrutinising your rooms in the evenings when you're desperate to start cooking the dinner, or at weekends when you just want to relax on the terrace or sofa, but if someone is only able to view homes outside their working hours, or after school hours, or perhaps during a short stay of a few weeks in Spain if they live abroad, they need to be able to see yours. If you cannot offer a suitable viewing time, then another homeowner seeking to sell probably will – and it'll be theirs the viewer buys instead of yours.
Price is key to a sale
All the above advice is fine if you are actually getting viewing requests. But how do you get would-be buyers in the door in the first place?
There could be many reasons why your home has been on the market for months and nobody has asked to look at it. Maybe near-identical properties for sale at a similar price have facilities yours does not; as an example, flats above ground-floor level, and certainly above the first floor, will command a much higher price if they have a lift. Investors seeking bargains are more likely to be attracted to that fourth-floor apartment in a block with only stairs, since it will probably be very cheap, however attractive it is otherwise.
Price is usually the biggest factor for buyers. Those who do not have to worry about budget restrictions can, in theory, command any level of luxury they want, and unless your home is particularly unique or is in an area with extremely low supply and very high demand, you need to make sure you are not asking too much.
Conversely, asking too little might be off-putting, since an astute buyer will automatically think, what's the catch? You don't want home-searchers believing there 'must be something wrong with' your property that drives the price down.
Setting the asking price: The common mistake you should avoid
When it comes to pricing decisions, estate agencies strongly recommend would-be sellers allow them to carry out a valuation. You can ask several agencies to do so, and then compare the results, and perhaps look at online valuation tools, too. But it's important to advertise your home as close as possible to the market price.
Valuations normally give an upper and lower price range, and industry specialists concur that the biggest and most common mistake sellers tend to make is to market their home at the top end of this bracket.
Even though their aim is to try for the highest figure on the basis that this gives them greater margin for accepting a lower offer, the reality is that their property will be overlooked. Would-be buyers will ask to view similar, or near-identical, homes to yours that are on sale for less. As a result, your home will take longer to sell, and you will probably end up having to drop the price anyway.
Effectively, even though potential purchasers know they will probably be able to make an offer below the asking price when they see a home they are interested in, they do not tend to take this into account at first. Human nature dictates they will focus on asking prices they can already afford when deciding which properties to view.
Sellers need to take into account how far they can afford to take an offer. The drop in price a homeowner is willing to accept might be influenced by how quickly they want to hand over the keys, or perhaps if it is a home they have inherited rather than being their main residence, and they are keen to liquidate the asset without further ado.
This said, if you are not looking for a very quick sale, you do not necessarily need to be pressured into accepting an offer well below what you have advertised your home at, estate agents say. Where a property is on sale for a figure that correctly reflects the market for its type and location in accordance with the valuation carried out, the price it is bought for does, in most cases, tend to coincide.
In other words, market your home at the right price, and it's likely this is what you'll actually get for it.
By contrast, starting too high and reducing the price again and again may give a buyer the impression you are quite desperate to sell, and could attract offers considerably lower than you are willing or able to take. Whatever figure your home is advertised at, you should feel confident that this is actually what it is worth.
Should you reduce the price to speed up the sale?
How do you decide when, or if, to reduce the price?
Normally, the estate agency will be able to advise you what's best; if your home is advertised at a correct figure but is still not selling and you're keen to get moving, they might say it's time to offer it for less. Or, on the contrary, they might say it's not worth cutting a couple of thousand euros off the asking price, as doing so would not really influence the target buyer and would simply mean you get less than you want.
This might be true where, for example, a buyer has a high loan-to-value mortgage over a long term, perhaps 20 or 30 years or more. Depending upon interest rates at the time of selling, reducing a price by €1,000, or €5,000, or even €10,000 may only make a difference of a few euros a month to mortgage repayments. That may not be enough to change buyers' minds; if an extra €20 or €30 a month means they can get a home that's much more suitable for them, a relatively small saving will make little difference.
On the other hand, seeing a price reduced can be a psychological incentive: The buyer thinks they are getting a 'bargain'. Your estate agency will be able to advise you better on which of these is most applicable to your specific property, however.
Property sales professionals recommend you decide on a timeframe, based upon how quickly you want to sell. Set yourself a specific date upon which, if you have not sold your home, or not had any viewings, you will reduce the price. You don't need to work out, at this point, exactly how much you will reduce it by; once the deadline you have decided upon comes, you can then talk to the estate agent.
It's possible that, by then, you may have had some viewings but no offers, or that people have looked at the details of your home as advertised and chosen not to view it. Whether, and by how much, you lower the asking price might be influenced by these people's comments about your property; maybe any negative points that have put them off are something you can remedy, without having to accept less money. Perhaps a high number of actual or potential viewers have been discouraged by the fact your home needs redecorating, the garden is overgrown, or it does not have air-conditioning, and they don't want to bother with the extra work or expense involved. You might find that by rectifying these aspects, you start to get offers close to the asking price.
'Added extras' may encourage sales
Sometimes, extra incentives can help sell your property quicker without having to drop the price. You could offer to include all domestic appliances, or sell it 'furnished', especially if said furniture is of good quality. Or, if there are repairs needed, you could offer to fund and arrange these for the new buyer.
Otherwise, you could offer to have extra facilities or features installed on demand. Perhaps a viewer has said your home would be perfect for them if only it had double-glazed windows, but that they cannot afford to have these installed if they pay the asking price. In a case like this, you might decide it is worth agreeing to sell to the viewer at the advertised price and to arrange and pay for double-glazed windows yourself.
You may also decide to pay any outstanding taxes, or fund any upcoming taxes, due on the property, or cover lawyers' fees, for example. Even though the actual cost to you might seem too small to prove a real attraction, it could be that the psychological effect of 'bonus extras', or of having 'one less job to do' in the typically-busy task of moving home, is a welcome factor.
Which areas of Spain see the quickest sales?
As a general rule, major cities with good transport links and job opportunities see a much higher rotation of residential properties, estate agency experts say, but outside of these, the most buoyant markets at any one time are the traditional Costas.
The provinces of Alicante and Málaga – whose coasts are known as the Costa Blanca and Costa del Sol – as well as that of Almería are said to be the ones with quicker home sales, especially among foreign buyers seeking to move to Spain, or foreign and Spanish buyers looking for a holiday home.
Although the Costas and Balearic and Canary Islands are typically the most sought-after areas nationally and internationally outside of the largest cities, this does not necessarily mean sales will automatically be swift. Many of the eastern and southern coastal areas also have a very high supply of properties, too. The homebuying market is much more active and dynamic in these areas, but there's also a lot for property-hunters to choose from.
Even within the same city, province or stretch of coast, selling times – and prices – can vary, say property professionals. An affordably-priced home in a commuter belt would probably sell much more quickly than one of a dozen homes on an urbanisation near a coast, since the latter has a greater supply and the offer is very similar. Certain districts in Madrid and Barcelona cities are currently being described as 'tense' or 'high-tension' areas – not because of negative aspects of the neighbourhood or community, but because of exceptionally-high demand coupled with prices out of the reach of those who seek them. In these, a price reduction may be more important to getting a quick sale than any 'added extras' or advantageous features the property has.
Likewise, in a very cosmopolitan area, the dominant nationalities of the other residents may influence how quickly a property is sold. Foreign buyers seeking a permanent residence or holiday home might be drawn to a given district because it has an established community of expatriates who share their language or culture.
This said, the opposite can also be true. Some very cosmopolitan areas did not start out that way, but became so because people of different nationalities wanted to live as far away from their compatriots as possible, experiencing full Spanish immersion – and then discovered that a huge number of their compatriots had had the same idea.
At the end of the day, though, property professionals all agree on one point: The speed at which a home is sold is entirely down to what the individual buyer wants in a given area at a given time.
After all, your home only needs one buyer to enable you to pursue the next chapter in your life – so it doesn't matter if you've had 20 unsuccessful viewings, as long as the 21st viewer likes it enough to buy.
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