Read on for tips from The Viewing on how to adapt to the current market.
Brexit, Trump, exchange rate highs and lows, earthquakes in Italy, terrorism in France and Germany, death of a King in Thailand, the Zika virus, monetary crisis in India.....the list goes on.
Isolated incidents you may say but there is no getting away from the fact that these incidents can alone or collectively paint negative pictures of regions, countries or indeed whole continents to prospective property buyers. Yes, some buyers have simply given up their intention to buy, some have postponed until mid 2017 but fear not, a good number of buyers remain intent on purchasing an international home now and rightly so when one can use the current issues to one's advantage.
So VENDORS, what do you need to expect? The good news is that the buyers in the market this winter are undeterred and want to move forward quickly. They've seen what has happened in the world and their attitude is 'yes understood, so what, I want a second home somewhere hot and sunny'. What you need to do before you even get close to a negotiation is establish your position and bottom line because you will be negotiated on price and the above incidents will be stated as the reason. To give you a guide on typical levels of negotiation - be prepared for a first offer 20% under asking price but don't fall off your perch if you are presented an offer as much as 30% under asking price.
Look at that exchange rate! Are you converting proceeds of the sale back into another currency? Do the numbers on what your bottomline is in the end currency, this may give you more leeway. Feeling confident the rate may improve? Why not propose stage payments allowing you to convert tranches over the next few months at (hopefully) more favourable rates. This sort of deal structure is often welcomed by purchasers so have that plan mapped out ready to put on the table.
Buyers, know your stuff! Read up in detail how all the incidents of 2016 could or are directly affecting the property market in the country in which you plan to purchase. As an example, if you want to purchase a property in Umbria Italy, yes by all means use the recent earthquakes as a reason to go in with a low offer, but don't use the same reason to offer low on a property in Tuscany or the Italian lakes being areas that have little/no history of quakes; it'll only create bad feeling at the start of a negotiation.
Don't 'over-expect'. By all means try your luck to get a good price agreed but offering more than 30% under asking price may simply result in a vendor refusing to even enter a dialogue with you. Yes a lot has happened in the world over the past year, and yes you are in the driving seat. But, do consider that the vendor has not simply plucked an asking price out of thin air. The price of the property will have been set based on market prices and the specific characteristics and location of the property.
Do you want to buy now purely to get more for your money? If so, no problem, focus your search on properties where the owner's situation is particularly 'distressed'. No point going in with a hugely discounted asking price on a property owned by a billionaire owner who has only put his/her property on the market some three month ago - they'd prefer to wait to see what 2017 brings.
Email us at info@the-Viewing.com for proposals of properties where owners have expressed an urgent need to sell and for tips and advice on how best to market and position your property for a swift sale.