Property Buyers Market: What does this mean to buyers and sellers?

The global credit crunch and the mortgage pressure are contributing to the falling demand for property. The oversupply of properties for sale is likewise leading us to a buyer's property markets. So how do buyers take advantage of the situation and what can sellers do to get a good price?

Buyers are advised to shop around. There are bargain properties out there, you just have to do your own research. Check the smaller estate agents as they can afford to be more competitive in their prices, without having to pay so much in overheads. This is especially true in Fuerteventura where properties for sale tend to be listed with more than one estate agent but not necessarily at the same price. Fuerteventura Property World, for example, charges lower commissions hence, their properties for sale are in no doubt, better priced. If you find any to the contrary, contact Fuerteventura Property World and we will do something about it!

Register with estate agents’ websites that offer automatic updates on new properties – and publicised reductions. You will be able to see whether a villa or apartment you viewed two months ago is now available at a reduced price. To sign up for Fuerteventura Property World’s free automatic notification and be one of the first to know of price reductions, please access the New Member Registration form.

If you are ready to purchase now – meaning you don’t need a mortgage – do your homework and negotiate on price. Make a realistic offer based on your research. Yes, just realistic offers, please – and it is necessary that you do a research prior to making an offer to have better chances. Areas to consider are existing market conditions, potential fixes that need to be done on the property, how long the property has been on the market, etc.

If you need a mortgage, however, the process has become more costly. Some Spanish banks are still offering up to 80% Loan-To-Value but others have reduced to just 60%. Seek expert advice and when you find a deal that is right for you, act swifty to secure it.

For sellers, on the other hand, it is important to be clear on what you actually want or need. Are you desperate to offload your property or are you willing to wait in the hope that the market catches up? If you need to sell on, be prepared to accept offers as buyers will really take advantage of their position in the driver’s seat.

If your property has been on the market for quite a while now and you have yet to receive an offer, you might want to consider dropping your price. In the past months, even developers are reducing their prices by as much as 70,000 Euros in Corralejo – on Residential Green Park (formerly Residencial Montana Roja) semi-detached villas. Also, a spacious 3-bed, 3-bath resale detached villa in Lajares is now for sale at 38,000 Euros less than the original price. Even apartments at great locations are on the market at bargain, reduced prices for bigger chances of a sale.

Pay attention to the state of your property. Make sure that it is clean and tidy and get decent photographs because presentation matters.

If you have any questions about buying or selling a property in Fuerteventura, please feel free to contact us at info@fuerteventura-propertyworld.com and we would be delighted to assist you!