Consult similar offer in internet portals, analyse the profile of the potential buyer and assess the general state of the property. These are the key elements to put the right price on your home.
But are you aware for instance that homes that do not exceed the 100,000 euros mark, are the first to be purchased?
It is clear, the real estate sector live a clear recovery, in general. However, there are still large pockets of product that will continue to lose value, and in many cases, properties that may never again find a buyer.
What houses will increase in price?
Mainly those located in Madrid and Barcelona where prices have been rising for the last two year and still rising. These two regional communities are where the market is very close to absorb all the technical stock necessary for demand to surpass the supply. Also regions where the economic recovery has already taken place, coupled with a shortage of new supply, maintain the price of housing: particularly in the Basque Country, the north Cantabrian and parts of Castilla and Leon.
Where will prices continue to fall?
In those regions where reverse to the above conditions are met. This is the case, for example, provinces of Castilla-La Mancha, where the economic recovery is being slower, or those like Castellón, Almería, Murcia, in many areas of the Costa del Sol, where both its macroeconomic situation and the oversupply, continue to penalize the sector's recovery. In these areas, the owners will have no choice but to continue adjusting prices as the continuous supply remains high and the demand low.
Two different speeds, at short distance.
Even a short distance can make a lot of difference; the recovery may vary greatly from one neighbourhood to another. Madrid, Barcelona, Valencia, the Balearic Islands, etc. They are cities that are receiving a strong foreign demand from foreign executives from Russia, China and other foreign buyers, who find attractive the idea of taking up residence in this country. This type of public is willing to buy the properties without fully or caring the excess of costs, helping to increase the price of the properties in those areas.
The consolidated neighbourhoods, areas that have undergone a complete renovation of buildings or construction of prime housing, or the areas most desired by international investment funds such the central main roads in Madrid and Barcelona such as Paseo de la Castellana in Madrid, Paseo de Gracia and Diagonal in Barcelona, those areas have helped prices to recover in Spain (statistically speaking).
On the contrary, and often at a short distance, we may find more neighbourhoods which are not the crème of the crème that have suffered most from the crisis. With large pockets of very different homes, which coexist with other existing buildings in poor condition or lacking basic amenities like elevator or garages. In these areas, there is no choice but to settle for a drastic reduction in price if you need to sell the property.
Guidelines to adjust the price of your home
Given this disparity of views, let’s summarized in three points how to properly adjust the price of your home.
1. Check all internet portals objectively comparing with other similar property. Keep in mind that what you see is only the asking price, not the price at which the houses are finally sold. For sure the settling purchase price will be 5% to 15% lower.
2. Analyse what is the profile of your main buyer.
You can try to find a potential buyer interested precisely in your house by analysing the market, if you cannot, we must assume that this has been the one that has suffered from the crisis and may need to bring down the offer price. Conversely, if the property is well located and in areas with low supply, you can increase the price by as much as 10% compared to 12 months ago.
3. Assess which is the general state of your house, and assumes that a potential buyer will require to make an investment to improve or adapt to a similar house in the neighbourhood which may be more seductive.
These three guidelines may help not become disoriented when pricing a home. It is important to take those points into account, it will always be much easier to sell a property in the first three months, than to suffer watching the calendar months without an offer.