The market for property in Valencia city has gone a bit wild over the last month. There are so many buyers out there in the city, both Spanish and foreign buyers, and in certain areas a dearth of available properties for those buyers. So when you make an offer that is a lot below asking price you should not really expect acceptance at the moment. To mangle a simile a tad, sellers know that your bus may be leaving the stop but they also know that another ten buses are on their way down the road in the next few minutes.
The situation has got to that point where offers are being made at asking price and even then in various cases recently we were still not able to secure the property as the clients were either gazumped (one case) or the owner decided not to sell in order to wait and get a higher price in the future (In two cases) or even worse they moved the goalposts in terms of price due to the huge interest in their property (Another two cases). These price movements are marginal, an extra 3000 euros for example, but they discourage the buyer as it stinks of bait and switch tactics of course.
This is especially true in areas such as Ruzafa, El Carmen and the Cabanyal where properties are not lasting long on the market at all. Other areas are not quite as popular but they are still moving quickly.
The situation with houses is markedly different. Owners are willing to negotiate on prices still with houses and in some cases owners are reducing prices in order to capture the attention of interested clients. We are still hearing of owners sticking rigidly to their price but it is unusual for “another ten buses” to be coming along in the next few minutes unlike in the city.
Bearing all of this in mind here is a short guide for making an offer on Valencia Property especially in the city in the current climate.
- If you like a place and want to make an offer, make sure the offer is close to the asking price so the owner doesn’t immediately shut down and refuse to negotiate anything.
- Only make an offer if you are willing to go to asking price if required.
- Be prepared to put down a holding deposit with the agent to make the offer. Many agents now will not make an official offer unless there is a fully refundable holding deposit on the table for if the offer is refused. Depending on the price this can range from a nominal 500 euros to 3000 euros.
- If the offer is accepted the holding deposit becomes part of the full “arras” deposit, usually anything from 6000-25000 euros depending on the property value.
- Let the seller know you can complete quickly and, if it is the case, do not need finance. In the current market they will not want to take the property off the market in the hope that you can find a bank that will lend you the money.
- Have a quick lawyer ready to check the deeds, do the conveyancing and put together the purchase contract because owners will still have visits and the longer the lawyer takes the greater the chance of losing the property. (We have a little trick to get enough time which we put into the contract 😉 and we have English speaking lawyers ready to go for you)
- Have your funding ready to transfer into your newly opened Spanish bank account. (We can get it opened while you are here of course and introduce you to our currency partner in order to make sure you don’t get stung by bank charges or exchange rates)
- Make sure you have applied for your NIE number while here on your visit. (Again we can help you with that to make sure it gets done quickly)
Having said all of that, every property sale is different. The owners are quirky let’s say. Some want different amounts for deposit, some require different time periods for completion and others want to go straight to notary without accepting a deposit, this is a bit mad in our opinion but each to their own…
As long as you are ready, have an itinerary set up to do viewings, (Contact us prior to visiting to set up your itinerary) and are ready to go we will do our utmost to get you into the properties you want to see. However, between you requesting information about a place and your visit things are selling. Therefore the more information you can give us about your requirements the better. Let us know your price range, your “must haves”, your preferences, what the place mustn’t have and more and we will find you the best selection of property in and around Valencia to look at even if your initial choice is no longer available because, let’s face it, if you like it then so will others too.
We look forward to seeing you here in Valencia and one last thing, book early to avoid disappointment, as we said earlier, Valencia is full of purchasing clients at the moment and we need to arrange your schedule for you.