Managing Market Expectations

The property market in and around Moraira is entering a rather difficult stage, right now. Local prices have clearly bounced off the 2008/9 lows, while the majority of 'distressed sale bargains' have been absorbed, there remain many excellent buying opportunities.

THE DIFFICULTY now is the emerging mismatch of expectations between aspiring buyers and would be sellers.

There seems to be no shortage of deluded souls, both in the UK and other northern European countries, who think they can buy fine property at very rude prices.

Adding to this conundrum, we now have local property vendors anticipating a whiff of recovery, thinking they can push for more ambitious prices. We see a key role of our Moraira centre sales office, as one of managing expectations of both the vendors and buyers, alike.

All too often we have would-be vendors approaching us who have been poorly advised with over-optimistic valuations, provided by some of the more desperate agents, who are more concerned with filling their window displays and building their property stocks, rather than provide honest, realistic and attainable valuations for their vendor clients.
So often these vendors state they have had no offers, or even any viewings in months; either the agent is totally idle and apathetic, or the property is wrongly valued - perhaps both!

Having survived the severe property recession of the past three years, we are now at risk of the market stalling and falling back into the hole it has been clawing itself out of, due to a combination of the bad advice of a number of agents, and the over-ambitious expectations of both property buyers and sellers. We are approaching a 'new dawn' in the local property market; just what is needed if any recovery is to succeed and gather sustainable momentum?

a) Estate Agents need to offer sound and sensible valuations and advise to their clients, and put issues of short-term self-interest behind their professional duties and obligations.

b) Vendors need to discount issues such as: what they had paid for their property, what it was worth four years ago, or what their mortgage is, these factors are no basis on which to base a realistic valuation in today's marketplace.

c) Buyers from abroad need to realize that whilst the general Spanish property market is rather unwell, reports of its death are greatly exaggerated - the corpse is still twitching! With well priced properties on offer, waving a chequebook will not have us all falling at their feet!

Author:  Chris Garwood – Partner, Estate Agents Moraira, Select Villas of Moraira
February 2010

Villas for sale in Moraira and Benissa  

Apartment for Sale
2 beds, 1 bath
249,000 Euros

Apartment for Sale
3 beds, 2 baths
249,000 Euros
Finca for Sale
7 beds, 9 baths
760,000 Euros

Villa for Sale
4 beds, 3 baths
785,000 Euros