Tenerife property sales will slump unless estate agents price realistically
Value It España, the Tenerife based independent property price guide publisher, today releases advice for buyers and sellers of property and their estate agents in Tenerife.
It has analyzed the actual costs of property versus the asked for selling prices and this reveals that the final price (or cost per square metre) could be as great as 26% less, noting that some of this may also be due to under declarations to the notaries as to the agreed selling price. These figures come from an assessment of the government quarterly figures and that of Value it and its recent data base.
J Gardner of Value It commented that “serious buyers and sellers are agreeing big discounts to the initial asked for selling prices. However this effective overpricing of properties relative to customer expectations will also deter people from buying as they can never be sure if they are going to overpay. The upshot is that the market will stall completely as buyers become more uncertain. Those buying for rentals will also be put off by the low gross yields”.
“Property buyers must also remember that buying costs add 9-10% of the selling price, so to stand still in value terms the property must appreciate by that amount, plus the 3,7% of current inflation. So negotiating hard with the market facts and the market price ranges is a must in order to protect your property values against price falls”.
About Value It España SL
Value It España is an independent company that produces a property pricing guide showing the range of prices or costs for property in all areas of Tenerife and for most property types. The purpose is to help those considering buying property in Tenerife be sure of market values so that they buy with confidence.
www.valueit.es
