As many of you have asked me, I will give you my version of how I see the market for the sale of properties in Altea.
I must clarify that my conclusions are always based on information that I capture from different media, from my own experience, from my knowledge of the local market, and much from my intuition, that although many will seem bullshit because they do not believe in it, I assure that the few times I ignore it, I screw up.
I have to clarify a question very well: the real estate market goes through neighborhoods
For example, the same is not sold in the Salamanca district of Madrid than in Aluche or Carabanchel.
Varied tastes, housing typology, sizes and of course, prices. Therefore the characteristic of the buyers can be very different.
Well, in Altea, although it may seem a lie, the same thing also happens.
Each zone has its type of buyer, and even its predominant nationality
The same is not sold in Altea Hills than in the town of Altea, for example, neither in the urbanizations between Altea La Vella and Callosa, nor in the Old Town….
There are real estate agents that are making a lot of money selling very old and almost destroyed houses in certain areas, because there is a type of buyer-investor who demands them. They buy them cheap and then reform them to sell again or just to enjoy them themselves.
Good luck they have,
The real estate, I say
As always I have dedicated myself to the luxury market, I don’t have so much … The area that I manage Altea Hills, Sierra de Altea, Sierra de Altea Golf, Mascarat, Campomanes, etc
at the moment is quite quiet for:
1.-) The buyer of high purchasing power is not coming, and the few who come every day have higher penalties to import money, and totally legal money that does not come from tax havens (even from the European Community itself)
2 ..-) Due to imposed urban restrictions there is practically no new construction, except for some wonderful (and very expensive) villas
3.-) For any displacement a vehicle is needed
4.-) Faced with global economic uncertainty and until there is a government in Spain that defines its line of action, capital is still waiting for events.
All this in what is translate?
A.-The homes we sell, with rare exceptions, are already more than 10 years old, and many between 15 and 20 years old.
And the current buyer prefers mostly new construction
B.-Most buyers are older people who do not want stairs and have to depend on the car, so they go to other areas where this does not happen.
C.-The prices we have are very expensive for what is given in return. With the wonderful views of the sea and the great weather is not enough
D.-The tastes and customs of the buyers have changed, practically no one wants to make a very large investment with all the maintenance costs that means, to use it only a few days a year.
What does this means?
That any property that is below € 500,000 is relatively easier to sell than what goes up from that figure.
How does it is possible to change this?
According to my point of view, as I said in another blog, the first option is because the City Council takes urgent measures such as improving infrastructure, cleaning, asphalting of streets, security, etc, etc.
That is, invest more in improving what is seen, and that the buyer perceives that the town is alive, and that it advances.…
Thus he feels that his investment is secure, that he has a future …
And aiming for Altea to be again the refuge of special, different, classy people…. And who wants to go unnoticed …
Because what it is to build massively will no longer be allowed again.
The question then is:
Why do we have more expensive prices than the reality of the Market?
Ah folks, this is a bit complicated to explain.
In my view Altea is so beautiful that we all think much better than other areas (and it really is!)
We value everything much more.
Most of the sellers (especially if they are from other areas) think that their property is worth much more than it really is, and this is the fault of some real estate
they accept anything in order to have 600-800 properties for sale, I suppose that should give them pleasure because, according to my experience, it is useless and uncontrollable in addition to misrepresenting the market
because the owners before deciding the sale price look on the internet
and when they see their neighbor’s house announced they think:
“If this is a crap compared to ours, if it is worth x, ours then is worth x + 2″, and so the distortion occurs.
If then a true professional comes and tells them that their house is not worth x + 2, but x-2, then they get pissed and sent for a ride. (I know something about that)
I particularly do not take for sale in these situations because after a year of not having sold the property they say that I do nothing … And the funniest thing they then give it to another for sale at a lower price.
And this is where we, the sufferers, the poor real estate agents who work and work, and many times we cannot close the sale because the owner does not come down and the buyer, who comes with the shotgun, is planted in his offer and not goes up!
How I long for past times!
Sometimes we cannot close the operation for ridiculous amounts!
Do I tell you an anecdote?
Some time ago a client wanted to buy an apartment by the sea and after hard negotiations the difference was: only € 2,000! between both positions
It was a sale around € 250,000.
Imagine what happened!
And it was not sold. ¡for a difference of 2.000€! Crazy….
The happy ending for us was that we finally sold another!
They were both rich. Buyer and seller
How difficult it is sometimes to understand human behavior!
Finishing, I give you some advice not asked:
for sellers who read this, they already know what to do if they want to sell,
And the buyers too !!
It is understood?
If anyone wants more information, do not hesitate to ask me. I will be happy to do it
PD: according to a report from the Tinsa Appraiser, the property in the province of Alicante has experienced an interannual increase of 6.2%
Not bad, right?
Next week more
Thanks and a hug