Years ago I remember asking a similar question when we were looking to buy our first property in London. “Is now a good time to buy?” I also remember thinking a similar thing when we talked about starting a family. “Is now a good time?” We seem to be obsessed with ensuring it is “a good time” or “the right time” to do something! Age and experience has shown me there is never the perfect time to do most things!
But when it comes to selling a property in Spain and the significant sums involved, the old adage of ‘buying low and selling high’ comes true.
So the question remains, “Is it a good time to sell a property in Spain?!
And the answer of course is not so simple - it depends!
It actually depends on so many factors and first and foremost is your personal situation. Why are you thinking about selling? Do you need the money for another purpose such as purchasing a different property, or making a different investment?
Are you looking to exit from an investment and try to call the high of the market? Of course it is very hard for anyone to call any market with 100% accuracy and the Costa del Sol property market is no different.
After being in the real estate industry on the Costa del Sol for 20+ years we have documented our thoughts on the market and published the Lion Trust 2023 Costa del Sol property market forecast. You can take advantage of our experience and read about our predictions for the year. In this article we will do a short summary of what we believe to be the answer to the ongoing question “is now a good time to sell?”
Sellers’ or buyers’ market?
With buyer demand outstripping supply of quality property assets, we believe it’s a sellers’ market on the Costa del Sol at the moment. If you talk to any number of reasonably informed estate agents, you will soon come to the realisation that the common theme along the coast is that there is a ‘shortage of stock’.
We believe that the cause of this is a combination if the following:
1) After the 2020 and 2021 COVID period there was a pent up demand from buyers wanting to finally realise their dreams of owning a property on the Costa del Sol. Many of these clients took action and realised their dreams.
2) There are more people of different nationalities buying properties on the coast than ever before. Simply put, there are more genuine buyers than there are good properties for sale.
3) There is a new category of buyer – the expanding number of people that are perfectly capable of working remotely from their place of work. Previously this was predominantly just business owners, but now it is employees who are choosing to design their life in such a way that they can enjoy and benefit from what is arguably Europe’s best climate.These buyers are in addition to the usual retirees and holiday home buyers.
4) Investors have been buying up stock as long term holds and rental investments.
All of the above means that it is perhaps not as easy as one might initially assume to buy the ideal property, regardless of the price level.
However, property owners who think they can successfully secure artificially high, random prices for their properties (unless they are sitting on something genuinely unique) are mistaken. In the main, buyers are smart and most of them know what the market value is for properties in the areas that they are looking and are being advised by a trusted agent.
Buyers will look at the comparables and can see the value in a property and where a premium is worth paying for a specific property. Given the current market conditions with high buyer demand properties priced correctly in high demand areas will sell quickly.
Being misinformed, or being poorly advised by weak estate agents who won’t give a true market valuation for fear of losing the listing can lead to struggles selling your property, even though the market indicates the high selling capacity. All that happens is that your property sits on the market for longer, before you readjust to a more realistic price. As a seller, if your property has been on the market for several months with no interest, chances are it is not priced correctly.
If you want to know more about how to sell a property in Spain the best way, check out our sellers’ guide where we take you through the steps one by one on how to successfully sell your property.
So is now a good time to sell a property in Spain?
It still depends!
We will never know what is exactly going to happen in the future in the Costa del Sol property market. Who knows maybe next year will have a spike and property values will go up further, or perhaps they might drop.
When it comes to selling your property, it’s all about finding the right buyer who sees the value in your property and is willing to pay for it. You only need one buyer and the role of the professional property agent is to find that buyer for you.
If you would value our input as to whether now might be the right time to market and sell your property in today's market, please reach out to us and we will gladly give you our input on a completely no obligation basis.
In the post-pandemic world of 2021 and 2022, property agents reported record sales volumes due to pent-up demand from buyers wanting to realize their dreams of owning property on the Costa del Sol. Now, let's take a look at what we can expect in 2023.
Planning to sell your property? Prepare your home properly to make a lasting first impression. The right preparation can be the difference between receiving a great offer and waiting for that perfect buyer.
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