The Tenerife Property Market is now showing signs of being hit by a glut of distressed Tenerife property. Whether that is a good or a bad thing will depend on your own particular position.
If you are a seller then you may find your property suddenly becomes uncompetitive in a changing market, so if you really want to sell you may have to further reduce your price to match the market at a given time.
If you are a Developer then you may be tearing you hair out, because some distressed Tenerife property hitting the market is new build. Would you buy from a developer if you could buy a similar unit at a greatly discounted price? Some Developers are however being realistic about their pricing levels.
For sellers, it definately is a buyers market at the moment, but we do recommend you carry out your research to to make sure what you wish to buy is a actually a bargain. It is very easy to market a property using the term bargain or distressed but is it really? Whatever you want to call it, such a property must be below the market price.
Some buyers are mindful that a seller may be in a weak position and they are making offers well below the market value. They figure that a seller may have personal reasons to sell cheap, maybe they are returning home, or maybe they need to release equity.
Well how do you define market value, is it what someone is prepared to pay, or an agreed sale price. We would say that it must always be the agreed sale price, but you must bear in mind, once a particular type of distressed property is sold in a complex, the market value of that particular type of property does not automatically revert to the last sale price because it may have been the only one available.
Equally, if there are others of the same type then they may be overpriced. At least 80% of the Tenerife Property Market is swamped with overpriced property which will not sell under normal circumstances.
So the important thing to remember is that the market value changes all the time, it is only a snapshot at a given time. One thing is for certain though, a Tenerife property buyer will never pay over the odds if they choose Expedia Property to represent them. Due to the amount of overpriced property on the market we are only actively marketing what we believe has a chance of selling. It is very doubtful that a property with a premium price will sell in the current market, today’s buyers are smart for that.
Blog posted by Expedia Property SL – Tenerife Estate Agents for Tenerife Property
