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Dealing with Spanish distressed sellers who have good property bargains-Part I

Spain is a distressed property market with thousands of motivated sellers looking to sell their properties. Not very long ago (from around 2004 to 2007), we were talking about a seller’s market where prices were increasing to their peaks and difficult price negotiation processes were undertaken. I would have said that sellers were too spoiled at the time. Now the market has changed and sellers are not too ambitious.
 
I recently read a post of such a case back in 2007, about how the mind of a Spanish seller is tough and twisted. But the times are different (the absolute opposite just 5 years later) and even the most difficult seller has a real need to sell.
 
Every week we deal with dozens of motivated and distressed Spanish sellers who contact us on the phone, via Spanish contacts and via email. To see the current Investment Opportunities that we have (buy-to-let and buy-to-refurbish) follow this link
 
Constantly take into account that you should “never underestimate a seller or a buyer.” However, if a seller has a property bargain, the most important thing is to speak with him, to understand his needs, and to set up a win-win deal that will really seal a property bargain for the buyer.
 
From my perspective, the best property bargains are not bank repossessions, but just individual sellers’ properties. Especially in 2013, with the social pressure against evictions and bank flexibility, the “treasures” of a melting property market are in the hands of private vendors.
 
 
There are different scenarios in dealing with a private vendor according to his or her profile:
 
1) For those who need to get cash and realized late how difficult is the market and start becoming impatient. They put the property on the market months ago and started realizing that they must decrease the asking price to find a buyer within a reasonable period of time. They had no rush but just want to gain cash for other projects and move on with their plans. This is the classic case of a vendor with a lovely house that went on the market for 350k, went down to 330k after 3 months and after 8 more months they are at 275k. According to their situation, even 230k would be a winning deal for them. They do not have a mortgage or a break-even in mind. With the right approach, a good deal can be sealed.
 
2) Other sellers with a property quite above the market price simply cannot go below a certain figure because their asking price means breaking even and walking away from their mortgage. This is the case of the owner with a huge amount of financial pressure, with a mortgage debt of €210k, and a property with a current market value of €180k. A very difficult situation. I just say that I cannot help them with the orthodox one-on-one buying process.
 
3) Those who want to get rid of the property to avoid the pressure of the mortgage and get a bit of extra cash. Another classic case of a property with a mortgage of €45k, where the owner wants to make €60k extra. The asking price is €105k and the market value of the property is €120k. There is already a 15% BMV that could be even better and would still be a win-win deal. They could even become your tenants.
 
4) Those with savings who have a second house that they do not use. They do not struggle economically and just put the house on the market to try. Generally, they start with a high asking price and hold the price there.
 
5) Inheritance. This is a case that has come up very often in the last few months. 2-3 individuals share a property and want to sell it and share the money. This is a very good scenario for the quick buyer in place, who will be able to negotiate a good discount.
 
If you want to buy from distressed sellers contact us to seal the best win-win spanish investment deal
 
 
Other articles of interes:
Overseas investors are looking for a Spanish property bargain in 2013
Why Spain is still the first choice to buy and invest in property?
Getting to the point of Property Investment in the Current Market
 
 

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