This is about the most frequent arguments that influence on the owners of properties on sale in Spain to deny the drop of their prices and how this becomes a huge problem for the agent and the real estate when managing the selling process.
Why do not the owners drop the prices of their properties on sale? In the other article The owners and their properties for sale in Spain, we have explained the real estate cycles in Spain, highlighting a real estate reality in which we can detect the resistance of many owners of properties on sale.
If we take into consideration that the offers of properties in Spain are higher than the demand, we can observe that the task of selling properties in Spain becomes very difficult both for the real estate as for the agent.
Why do not the owners want to lower the asking price of their properties?
Why are there so many owners of properties in Spain who do not want to drop their prices? What arguments do they offer to the real estate and the agents? What is the motivation and the reasons why the owners of properties in Spain do not want to lower the prices?
We already know all these questions have different answers and of course they are particular to every specific case, but we can also bring some general answers. There are also situations that put some conditions to the whole process of selling of properties in Spain and these aspects must also be taken into consideration.
Owners of properties on sale who pretend to know better than anyone the reality of a real estate market.
“I am more intelligent than anyone and I know better the reality of the real estate market”.
This is similar to saying that our strategy is the best and the others are not right. This is just a big mistake and it is wrong to think that the owners of properties for sale could beat an entire economic and management process well- maintained for several years.
The idea that one is more intelligent than the others that sell their properties easily, not dropping the prices is also big thought. Every owner of the millions properties for sale in Spain has his own thoughts and his necessities mark the decisions and it is not about how is smarter than who.
All properties for sale in Spain are marked by the same reality.
“My property is situated in a distinct area and that is why it costs more”.
This is another lie used by the owners of properties for sale in Spain and it can be added to the one above and the factor of this is because there is no area of Spain not affected by the real estate economic crisis. The prices of the properties for sale have dropped and this could be seen both in the selling of resale properties as brand new properties in all areas of Spain.
There is no area of Spain not affected by the real estate economic crisis and the consequence of this is that the prices of properties for sale will not drop more. What is really true, is that prices have dropped differently in every area of Spain and there are certain areas that experience an increase of demands because of the foreigners.
This is experienced by the coastal part of the country, especially by Orihuela Costa, an area where the majority of the buyers are foreigners.
The drop in the price of a property for sale does not mean to give it away.
“If we drop the price of our property that means we just give it away for nothing”.
This will obviously depend on the prices the owners paid for their properties and this will make the buyer speculate on the real price of the property, not being able to take a decision.
Here we should underline the fact that the client has a huge portfolio from where to choose properties for sale and he will probably find an owner who would drop the price considerably.
This is the perfect time to buy properties in Spain, especially because of the huge drop in the prices and because of the high offer of properties for sale.
The properties´ prices are showed by the market.
“The properties should not be sold for a lower price”.
But why not? When the owners of properties for sale manage to sell their houses for less than what they paid for them in the beginning, this does not mean they are just give them away, but they are just selling them.
Anyway, this means that the prices of their properties are not reaching the expectancies, but it does not mean it is a bad business because it has been showed those who finally will not sell anymore are actually those who will have a worse business.
This is a matter of minimizing the losses, because we really know the owners of properties for sale will economically lose and in this situation, is always better to lose some than all.
Thousands of properties for sale in Spain have a mortgage.
It has been demonstrated that the majority of the properties for sale in Spain have a mortgage, being the only way in which the owners could buy them. This is also an important factor in order to understand the reality suffered by Spain and the real motive why the properties won´t drop their price.
This is the problem they have to face. But this is not the moment to be sorry about the errors done because in this way we could never solve the problems. The best solution for the owners of properties for sale is to try to sell their properties with mortgage as soon as possible in order to minimize the losses.
If the owners have also made some changes or improved the properties (reforms or decorations), they should also take into consideration this will not be considered by the clients, because they are simply not interested in that.
The owners of properties for sale who are not in a hurry to sell.
“I will not drop the price of my property because I really do not need to sell it”.
It is frequent to find more and more owners of properties for sale who actually do not want to sell and the logical question we ask is: Then why do they want to sell? They probably want to follow the negative strategy to speculate and try different prices of the properties for sale.
If the owners of the properties for sale in Spain will never adapt to the actual market or they simply do not want to accept the reality, this does not mean the value of their properties is the same.
The owners of properties for sale do not lose money when they end the process of selling in good conditions by lowering the prices, they are actually losing money at the moment when similar properties are sold for a lower price. This is what determines the price of the properties for sale and the real estate market.
The properties for sale in Spain which have several owners.
This is also another inconvenient factor which limits and affects the selling of a property. It is frequent to find properties for sale that have several owners and when the owners do not agree on the selling process or the price, the problems start to appear.
This could lead to severe problems such as the completion of the selling process which is lost. The properties for sale with several owners could lead to different situations and the real estate agent experiences them:
- Several recipients of a legacy (normally, they are relatives).
- Divorced or separated couples who argue about the distribution of the goods.
- Several investors who bought the property as an investment.
In any case and dealing with this situation of the properties for sale with several owners, the real estate and the real estate agent should never get surprised by the possible changes regarding the owners. It is true this is highly difficult to control because it depends on different variables which are not understood neither by the real estate agent nor the real estate itself.
The scenario in which one of the owners quits just at the notary when signing the final deeds, is not something too strange for a real estate agent with experience and this was probably experienced by any real estate.