Monday, May 31, 2010
The chasm between sellers/buyers expectations still needs to be bridged
Regular readers know that I'm 100% on the side of the buyer throughout the search and transaction process.
There's no grey area - my clients appoint me because of my expertise in sourcing property and buying it at the lowest price possible.
One of the most important parts of my job then is to ensure that my clients have realistic expectations about what their money will buy and the current state of the market.
With our TV and computer screens full of bad news stories it's easy to fall into the trap of thinking that property vendors are on their knees and willing to accept huge discounts on the asking price of their properties.
Sadly, this simply isn't true...at least in my particular slice of France.
Sure, most sellers are realistic and are open to offers but a general 20-25% reduction on all asking prices, forget it.
In the last two deals that I have been involved with we have managed to obtain around 15% from the asking price....and both of those were after a great deal of negotiation and our introduction of "comparable evidence" (research into the cost of similar properties).
Of course there will always be stories about the man who has a friend who knocked 40% off the asking price of a house but these rarely stand up to scrutiny (usually the price was hugely inflated in the first place).
It's a buyers market and there are bargains to be had but don't be fooled into thinking that all vendors will bend over backwards.
In this market "research, research, research" is almost as important as "location, location, location".