Increase in Enquiries Bodes Well For Coming Months!
This time last year, we were reporting on the declining numbers of British buyers here in Spain. The slowdown had begun immediately after the vote to leave the EU in 2016, so for 18 months, following the referendum, UK buyers declined by a considerable amount, whilst other nationalities made up the numbers. The UK buyers began to return from the middle of last year and their numbers have been increasing since. In the past few months, the market has remained steady and in reality, rather unexciting. However, since the Easter period, we have seen an increase in enquiries. Usually it takes a few weeks to work those enquiries into a viewing trip, so, in the coming weeks and months, we are looking forward to a sustained flurry of sales activity.
Buyer’s Budgets Shrinking – The Mortgage Option
After speaking to several agents, not just in Murcia, but also on other Costas, it transpires current buyers are getting harder to please. This is not too surprising as we also identified the fact that many of them are underfunded. Client’s requirements and expectations seem to be running too high for their budgets in many cases. The solution to this is to offer the buyers a mortgage option. However, the finance route is becoming tighter and banks are becoming more rigorous, often declining applicants a loan even when their financial status looks good on paper. Before the buyer arrives, we offer them the option to apply for a mortgage ‘offer in principle’. We use a mortgage broker who does not charge for this facility. It’s wise to use this service if you are a buyer reading this column, as you can then calculate more accurately the value of property you should be looking at. By considering a small top-up mortgage of say 30-50,000€ you could find yourself looking in a slightly higher property price band offering a more suitable property in a more desirable location.
Is Your Property For Sale Fully Up To Date Legally?
No matter what type of property you own; Apartment, Golf Villa, Country or Town House, it’s important for the owner to check the status of their property before going on the market. Lawyers representing buyers are getting more and more scrutinous when it comes to advising their clients to proceed or walk away. Although many of these slight discrepancies are fairly easily surmountable and can be put in order before a completion, nervous buyers can easily be dissuaded to proceed to completion if their lawyer doesn’t explain the solution.
In next month’s column I will offer more information on how to overcome a potential loss of sale due to small discrepancies in your property’s paperwork.
Fuente Alamo Real Estate/Murcia Coast & Country
Tel 0034 968 598 173