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Spanish Property Owners Prefer “No Sale No Fee” Model

Spanish Property Owners Prefer “No Sale No Fee” Model

Murcia, Spain: October 2020 – By Casas247.

Recent research has revealed that online estate agents offering low monthly up-front fees, without the guarantee of a sale at the end is not popular in Spain.

Since Purple Bricks burst onto the  British property scene in 2012, offering a new hybrid estate agency to rival their traditional High Street competitors, their low cost pay-upfront business model has been replicated around the world with varying degrees of success – and failure.

Many of the early entrants to the market were simply dwarfed by their well-financed senior rivals. Purple Bricks had a few years head-start, lots of investors and were seen as the original market disrupters. It was a complicated niche to infiltrate.

By 2015, even Purple Bricks were experiencing resistance to their pay-before-you-sell model. Property owners were not comfortable with this form of estate agency, preferring instead the traditional No Sale No Fee approach, even if that meant higher fees. Better to pay nothing for no results than £1500 with no guarantee of a sale.

Eventually, Purple Bricks had to rethink their original business model. Their brand was now established, but profits and returns to their investors were poor. Market survey after market survey churned out the same results – home owners were not comfortable with up-front payments.

With losses mounting around the world, Purple Bricks decided to offer the option of payment at the point of sale. This decision had profound effects, not just for PB, but also for the traditional High Street Estate Agents – large and small! Purple Bricks were now offering No Sale No Fee contracts that were fixed fees of around £2000, far less than the average High Street estate agent’s commissions, set between 1-2%. On the average property price of £280,000 that was a saving of £2,200 or 55% – and even greater on higher value properties.

For the traditional High Street Estate Agents to compete, they had to reduce their own fees and costs. This resulted in many closures, bankruptcies and redundancies. PB were quick to offer jobs to many of these newly unemployed sales negotiators expanding their coverage around the UK.

By 2015, Spanish property agents looked to replicate PB. It was an attractive proposition. Money upfront, no pressure to sell and in many cases, the option to earn more from charging for photography and adding the vendor’s property to their own website. Further extra charges for premium property portal marketing and assisted viewings. By the time all of these add-ons were calculated by property owners, it was obvious there were no savings to be made, in fact, paying upfront for all those costs, without the slightest hope of a viewing, let alone a sale was just too much of a risk.

The main beneficiary of the PB experiment in Spain has been the property seller. Just like in the UK, the traditional High Street Estate Agents have had to lower their commissions to compete. Over the past 5 years, average commissions charged have reduced by half, from 5% to 2.5% in highly competitive areas.

Over the next 3 years, those agents fees will reduce further and as a result, there will be fewer agents, job losses and bankruptcies.

Casas247.net has acknowledged where the Spanish property market is heading, which is why we can now offer 1% agent’s fees on a No Sale No Fee basis, with commissions payable on completion with no upfront fees or add-ons! We believe we are the first in our profession to provide this full estate agency service, with no hidden costs or catches.

Please contact us for more information here.

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What Features Increase And Decrease Property Value In Spain?

What Features Increase And Decrease Property Value In Spain?

Murcia, Spain: October 2020 – By Casas247.

When placing your property on the market in Spain, you need to consider the pros and cons that effect your property price.

The Spanish property market is very different to the UK. Schools, transport and proximity to the workplace dominate UK property values. These features are relevant in the local Spanish property market too, but rarely apply to the foreign buyer’s market. That’s because most foreign property owners and buyers are looking for a holiday home or to drop out and take it easy and enjoy the good life in the sun.

Rarely do Spanish people buy homes on urbanisations designed for leisure or choose country properties as their main home. Instead, they look for practical, low cost family housing, close to major towns or cities, virtually the exact opposite of what foreign buyers regard as a dream Spanish home.

The local Spanish property market also has a different age demographic compared to overseas buyers. Young families and professionals from 25-55 are the main drivers of the internal property market. Conversely, the overseas, foreign buyer’s market largely comprises of buyers between 50-70 years of age with higher, northern European budgets.

The property you currently reside in, here in Spain, will rarely appeal to the average Spanish buyer. In effect excluding around 97% of the total Spanish property buying market. The overseas property market is usually around 20-30% more expensive than the local equivalent. This is an important fact to consider when first putting your property on the market.

So the first question to ask yourself is: “will my property appeal to local Spanish buyers, or be better promoted to foreign buyers?”. If you aim at the local market, you will have to accept your price will need to be competitive and lower than expected. If you are targeting overseas buyers, it will have to appeal to those looking for the typical Spanish dream location, rather than a practical town or city area.

The most popular locations for the lucrative, overseas buyer’s market are as follows;

  1. Coastal apartments and villas.
  2. Golf & leisure resorts.
  3. Urbanisations close to coast/airports.
  4. Country homes with views.
  5. Cheap renovation projects/bank repos.
  6. Properties in attractive villages/hamlets.

The least popular property features include;

  1. Over-priced property.
  2. Isolated homes.
  3. Properties with poor access/long dusty tracks.
  4. Properties in agricultural town locations.
  5. Cluttered and poorly maintained homes.
  6. Unattractive, poorly designed homes.

It’s important to consider the pros and cons of your property above before contacting an estate agent. Be realistic, be objective about your property before deciding your sale price. Do some research on the internet and compare properties similar to yours. Some estate agents will take your property on at any price, but only a professional estate agent with an understanding of true property values will sell it.

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Murcia Property Owners Delighted With Low-Cost Estate Agent!

Murcia Property Owners Delighted With Low-Cost Estate Agent!

Murcia, Spain: October 2020 – By Casas247.

Property owners in the region of Murcia have reacted positively to the launch of Casas247.net  –

A brand new Spanish Property marketing platform that offers vendors ultra low cost fees for selling their property.

Traditional Spanish Property Agents tend to charge between 2.5 – 5% commission on the average property sale. Often, there are several clauses in their contracts, so what might look like 2.5% often turns out to be 5% when the terms and conditions are examined.

For example, the agent may require your property to be “exclusive” to them for a long period, this means you cannot get maximum exposure with several agents at the same time. Further scrutiny can reveal you are required to use their own legal advisors who charge a lot more than your own lawyer. Then there is the currency clause – you may be required to use the Estate Agents preferred currency company that offers you sub-optimal exchange rates because they are paying your estate agent a fee.

At Casas247.net there are no hidden fees or catches. We provide a full estate agency service, which includes everything for just 1% commission, payable on the completion of your property sale at the notary.