I have received a few calls lately from clients asking
why their house isn’t selling. We recently ran a seminar
and one of the sections was how to improve your chances
of selling you house. So here’s a look at the market and
perhaps will give some explanation as well as some tips
on how to improve your chances of selling your house.
Market appraisal.
Is the market dead? Most certainly not!
Based on recent activity the market is very much
alive and kicking. In August we have sold property and
have something like 150 enquiries to deal with, most of
them genuine buyers and most of whom looking to buy in
the next 3 months. So the market is not dead by any
means.
The UK market is very slow and UK buyers are thin on
the ground, but as these represent only 5% of the actual
market it shouldn’t affect the market too much. Those
that are looking are bargain hunting. They are looking
for something generally below 150,000. Why this figure
–I can only assume but I believe that many of the buyers
from the UK are people who made their mind up to move to
Spain a while ago.
However with the dive in UK market they couldn’t sell
their houses so they waited. Then they decided they
didn’t want to wait too much longer so they re-mortgaged
their house (I believe June this year saw the highest
number of mortgages for a number of years). This means
that instead of the £300 - £400000 they were going to
have they have between £60 - £100,000 and are now
looking at a second home rather than a primary
residence.
For the rest of Northern Europeans it is the Dutch
and Belgians predominantly with a few of the Nordic
countries who are coming down. Those from the Benelux
countries are looking for a lifestyle change and tend to
be younger families or those not quite ready for
retirement who want to earn a small living. They tend to
look for large villas with a good sized plot, but prefer
to stick close to the beach. Others are looking for
larger premises to run as a hotel.
The rest of the market is Spanish. The Spanish are
still buying and at least 60% of our enquiries and 80%
of our sales are to Spanish people. But they are
generally looking at a first time home or a holiday home
by the beach. They also don’t have much more than
250,000 whatever they are buying.
So if we look at a breakdown of what people are
looking for it is roughly the following
Townhouses and apartments within 15 minutes of the
beach – upto 150,000
Townhouses and apartments inland around 100-120,000
Beach apartments 1st-3rd line up to 200,000
Villas by the beach between 200 – 400,000
Villas inland with large plots to about 300,000
There is a good market for run down property to be
reformed to about 100,000 but most looking for these
type of property want a real bargain – ie do some work
on it and double their money. Hotels and casa rurals –
from 200,000 – 800,000 – both by the beach and Inland –
minimum of 6 beds
And that’s pretty much what we are seeing.
So why isn’t your property selling?
The most obvious reason is price. No matter what the
market is there are always buyers and any good value
property will sell. It is estimated that the market in
this area (La Safor Region and Marina Alta) is 30% over
priced and based on what we see I would agree in most
cases. How do you know if your property is priced right?
Well a simple rule of thumb is as follows.
If you have a villa/chalet etc with a plot of land
use the following for calculating the value of your
land.
1. if the land is urbano, inland it is worth between 25
and 80 euros per sq M. By the beach it is worth upto
250/M depending on location (this top price is the price
in prime areas like Moraira with sea views) in Oliva it
would be about 100 – 130 per m, so multiply the number
of metres by this figure and you have a value of the
land.
2. If it is suelo rustico then it is worth 7-10 euros
per M regardless of the house.
3. For calculating the value of the house if it is new
then it is worth about 1100 euros per M, if old 900, if
needing reforms then 500-750 depending on what needs to
be done.
4. If you have an apartment or townhouse then you
multiply the sqM by 1300 if it is new or 1100 if it is
old, 500 if it needs a lot of reforms or somewhere in
between, Obviously there is a premium for being closer
to the beach (like it or not people still want to be
near the beach and would prefer to buy there) so add
about 20% - 30% for similar properties by the beach
(within 10kms). Also if the property is an apartment and
doesn't have a lift then take off 20% of this value
This of course does not take into account things such
as pools, location, views whether an apartment has a
lift (which devalues a house by 10-25% depending on
floor if it doesn’t have a lift) etc, but will give a
rough and ready guide to your homes value. If it is out
by more than 10% then you will struggle to sell in
today’s market because this is similar to the formula
used by the banks to calculate mortgage values.
What can you do to make sure your house sells.
You have to work closely with your agent on this one.
Most agents work hard to achieve a sale in today’s
climate but they are let down badly by sellers who claim
to want to sell but put so many obstacles in the way it
makes it difficult. So what follows is a checklist of
what YOU can do to help sell your house.
Before your first visit
1. Clean IT! When the agent is coming to take photos
– do you really want people to see the Junk in the spare
bedroom, the tools all over the living room floor and
the dogs basket in the kitchen in photos – no of course
not – so clean your house before the agent comes to take
photos and before every visit. It sounds like common
sense but you would be surprised how many people don’t
and have a “take it or leave it” attitude. Don’t be
surprised then if the buyer has the same attitude and
leaves it.
2. Be available. There is nothing more frustrating
than hearing “No cant do tomorrow got to go shopping” or
some other excuse. We get people over from the UK to
look at houses and they generally have a few days here.
When your agent calls to ask for a viewing – make the
time (or don’t whine that your house isn’t selling). If
you cant make it get someone else to do so. Better still
give the agent a key. He is working for you to help you
sell your house – so help him. Putting it off for two
days gives the buyer the chance to see 10 or more houses
– so yours may not even get a visit.
3. Take a look at the price. It is unfortunate that
in Spain it is generally the buyers who set the prices –
and the agents don’t bother to tell them whether this is
right or wrong. Ask your agent to do a proper valuation.
Or better still pay for a bank valuation. Then set your
price below this. Remember the agents commission needs
to be added to the price – 3-6% is normal though you may
be able to negotiate with your agent. But do you really
think your house s worth what you’re asking. If it is
out by a 5% it may be the difference between getting
clients and not. In nearly every case that a house isn’t
selling it is down to the price – usually they are way
over priced but the owner believes that their house is
the best – don’t we all but take a reality check
4. Time for a change. Paint the house. If it is a
villa paint inside and out. It is a little cost which
makes a big difference. It gives the house a clean
feeling to it and paint it in bright non offensive
colours such as cream or dare I say it Magnolia/Egg
shell. Doesn’t matter if you like it or not you aren’t
going to be living there much longer.
5. Get rid of clutter. Even big rooms can look tiny
with loads of clutter around. Just have the essentials
you need for living– the rest store in a garage or rent
a storage room. Clutter is the second biggest killer of
house sales after cleaning.
6. Consider having a makeover done – it can be done
pretty cheaply. A few soft furnishings, well placed
pictures and a mirror in the right place, table set as
if for a dinner party, plants placed in strategic places
– doesn’t cost much but the effect is incredible.
Prior to visits
1. Make sure it is cleaned and everything tidied
away.
2. Remove pets If you have cats dogs or any other
animals get rid of them when people come. Your dog may
be a little gem but many people are scared of dogs and
wont want to be in there when dogs are present.
3. Also make sure you get rid of the smell of pets
before the visitors come over. If you have cats do not
EVER let them go into the kitchen (or even the house)
when a visitor is there – you may believe they are the
cleanest pets in the land – but the visitor wont. Also
bear in mind many people suffer allergic reactions to
cats – don’t lose a sale because of it. Take the dogs
out for a walk (don’t just chain them up outside because
they still bark and can frighten people.)
4. In Summer put the AC on for half an hour
beforehand, In winter put the heating on. A comfortable
temperature is 21 Degrees. It gives an ambience and
people feel comfortable generally at this temperature.
5. Open all doors and windows – unless of course it
is raining cats and dogs outside. Make the place look
bright and airy – this is a great selling tool – even to
Spanish buyers. And make sure all the blinds are open -
don’t sit in a dark house when visitors come.
6. Make an impressive entrance. The entrance is the
first thing people see and the first impression is the
most important. Clean the garden, make it tidy, put
plants outside the door, make it welcoming. If you live
in a flat make sure the communal entrance is clean and
tidy, get rid of bicycles and prams from the entrance –
a friendly word with your neighbour will be sufficient.
7. Smells. Get rid of any odours. Don’t cook smelly
foods like garlic or fish just beforehand. It can be
off-putting. I once went t o show a house and the owner
was cooking something dreadful – it smelt like old
wellies and made your eyes water – we were out of there
so fast. Shame because it was a nice house.
8. Be cheerful. If you look miserable the buyer will
sense this and probably not want to be there. Ideally
leave the house when the visitor comes and let the agent
do their work. It can be off putting for a buyer having
the owner there. It means they cant open up to the
agent.
9. Be quiet. Don’t ever try and sell your house. That
is what the agent is there for. What you may regard as a
unique feature and selling point may be someone’s worst
nightmare. You do not know what the client has told the
agent beforehand and your pearls of wisdom may be the
very thing they didn’t want to hear – so keep quiet
unless you are asked a question. Then of course answer
honestly.
Afterwards
One of the most annoying things about estate agents
in Spain is that they seldom call you afterwards to let
you know what is happening. If they don’t call you then
then call them. Find out what the feedback was. Ask the
agent before the visit to inform you of the feedback
from the client and LISTEN to what they tell you.
If it is something you can change without problem
change it. But always call the agent afterwards – give
them a day or so.
If you have any comments on the subject matter or
want any advice then please feel free to contact me.
vbtudor@spanishproperty-direct.com and for more
articles about buying in Spain look at the website
http://www.spanishproperty-direct.co.uk If you would
like a free copy of the e-book - "An Insider’s Secret
Guide To Buying A Property In Spain" then drop me an
email and I will send you a copy by return.
