The managing director of a large Spanish real estate firm claims that property will sell in a day if priced correctly.
José Luis Jimeno, Managing Director of Noteges believes all property has a price and blamed unrealistic vendor expectations for the lack of sales in a recent article in the Spanish press.
"So who is selling? Vendors who bite the bullet and drop their prices to be the most competitively priced on the market. They tend to be people who really need to sell, like divorcees, people who have lost their jobs, or people who have to relocate. It's vendors like this that buyers should be targeting.
"You can have a home for sale for months or even years, but until you drop your price to where the demand is, you can forget about selling", he concludes.
His comments coincide with the news that property market transactions shrunk 20% in Spain in 2011 compared to 2010.
What are your thoughts? Is it just a case of waiting for vendors to get desperate to clear the market? Surely it's not just a supply-side problem? Demand which is a function of mortgage lending and economic confidence must play the greater role is soaking up excess supply?
Source: Global edge