Real estate sale is a very complex process and take place in several stages. We advise sellers to choose an agency that will represent them in each segment and facilitate their entire communication. It is very important how the property will be presented and advertised, and that they have a strong representative behind them who knows how to reach the right buyers and has all the marketing and human resources that will enable them to do so.
However, in order for a property to be sold in real time from six months to a year, depending of course on the type of property, the most important item is the price. It is not uncommon for sellers to overestimate their real estate, giving it a certain sentimental value while ignoring market trends and real values.
Now, at the end of 2020, we can see which factors significantly influenced the reduction of real estate prices. We can only list a couple of important ones, namely Covid-19, poor results of the tourist season and very uncertain next two years, APN loans, tightening of banks' conditions for obtaining loans, etc. Also with various restrictions on the movement of foreign buyers was reduced to a minimum.
All this has made it slightly easier for sellers to lower prices because every Buyer who comes is valuable, but again a certain part of them keeps prices higher as if nothing has changed, which is by no means true. It often happens that there are really serious Buyers who give some realistic offers, sometimes even willing to give more, in consultation with their agents, architects, builders, but sellers refuse this in the hope that a new Buyer will come who will give them more money. Speaking from experience, this happens very rarely because Buyers when they make an offer, they give in line with market factors that sellers often ignore, relying on past better times. Real estate that has been on the market for a long time, Buyers also notice and get the impression that something is wrong with this property, and most often it is too high a price that is not in line with similar real estate.
Buyers bypass such properties and choose others that are more acceptable to them.
Advice to the Sellers is that they should certainly consult with assessor and agents about the market value of their property, to really take that opinion into account, and to prepare proper documentation before putting it up for sale. All this makes the property competitive, shortens the valuable time of all parties in the process, facilitates negotiations and can be a positive life experience.
Added: 15.12.2020.
Category: CROATIA REAL ESTATE NEWS
