Valencia Property Blog

We have always said to people to trust our judgement and listen to what we say as regards properties for sale and offers to be made. Most people do. Some don't. Some know better. However knowing better sometimes means missing out and that happened this week. To retain anonymity I'll just use the numbers as percentages but you'll get the idea. This is what happens when you, as I believe the terminology goes, FAFO. And if you don't know what that means, look it up.

A property was for sale for X Euros. We tell the potential buyer that the owner has recently rejected an offer of X-8%. This is not a lie, it's the truth and the offer was only made the week before. (We find out as much as we can about a property before going round). The potential client was willing to pay a little bit more than that so they made an offer. X-16%.

Yeah, me too.

It's at this point that the questions start and the main question is simple, why would you do that?

Of course the offer was rejected out of hand without a negotiation, without a counter-offer or anything. My suspicion was that the selling agent hadn't even passed this offer on unless they had used it as a lever with the owner to accept the previous X-8% offer.

But... this week we found out my suspicion was wrong. We got a message from the selling agent. The owner had accepted an offer and a deposit had been left. The offer accepted was X-4%. Theoretically our client was willing to pay that. They could have had the property at that price. Now their search has to start again because it really was the best place they had seen. As I said above, FAFO.

Market Dynamics

As we mentioned in the mid-year report blog, it's possible to get offers accepted now on properties when the property is overpriced or it's in a situation where there aren't many buyers for that type of property, in this case quite a high price bracket but needing a full modernisation. But you mustn't forget that even when the market is slower the best properties are still selling, and selling quickly, at asking or close to asking price.

If you go onto Idealista or any other portal now you will find plenty of properties with discounts. That doesn't mean everyone is cutting prices. It means that they were priced too high (Or as we have euphemistically said before "Optimistically") and the owners have finally realised that they will not get what they wanted and the market is going to spend more time before it gets to that price point, if it ever does.

These properties are used by agents as "Cebo" (bait). They are used to give you a bad comparison against the property that they really want to sell to you. That is why selling agents will essentially list anything. Some properties they know they will never sell but they perform a function of "Anchoring" (Making you think that similar properties are this price so the one they want to sell is a great deal). We are here to make sure that you don't even get to see the Cebo. It's not really worth it. We want you to only see things that match your requirements whilst at the same time give you a choice at great price points. That's what a buyer's agent does, they guide you away from the rubbish. Sometimes we will take you to see "rubbish" but only if you insist on seeing things we have told you don't really suit you because they are "on your list" and you really want to see them "just to make sure you can rule them out".

The process towards buying their own place now has to begin again for the potential buyer who lost out but here's the big problem now, anchoring raises it's ugly head again. Everything now will be compared to the one they missed out on. So unless something is stunning we may well hear a few months of, "I really should have made a better offer for that other place shouldn't I?"

But of course you don't want to have psychological experiments performed on you, do you? You just want to see the best properties matching your requirements at the best prices. Well, that's what we do. And of course if you want to work with us then either fill in the form below or set up a video call with us at the link below.

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Property of the Week

Beach Barrio Apartment in the Cabanyal

On Calle Barraca, named after the traditional Valencian houses that originally lined the streets of this Maritime District and now considered by most as the prettiest in the neighbourhood, we can find this excellent apartment behind a classic facade built in 1930, nicely renovated and furnished with a reliable tenant already installed to guarantee instant returns.

This 1st Floor Walk up has Two Bedrooms, One Bathroom, One W.C, a pleasant Open Plan Living Space and Kitchen facing East for sea breezes and morning sunshine but protected from the afternoon heat, perfectly positioned in Cabanyal for the Beaches, Bars, Restaurants, traditional Food Market for daily supplies and there is also plenty of transport options to get you to and from the City and Airport.

So, some long term passive income (Until August 2029) then you can slide into this great little lock up and leave in a thriving Barrio.

Get in touch for more details. Future you will be glad you did.

Stepping Stone Rental of the Week

Delightful San Valero

Available from October this is a good one.

Everyone wishes for this location! Located right on the cusp of the Gran Via in the heart of the L'Eixample you'll find yourself instantly wanting to immerse yourself within the nearby trending brunch and coffee spots, the museums, the city center and Turia Park, all at your doorstep.

A gorgeous large terrace for chillin' that will leave you feeling like you're on top of the world.

Bike lanes and the city buses right on the corner will take you direct to the Cabanyal beach or Plaza Ayuntamiento.

Go ahead and indulge in a vintage shopping moment in the buzzing Russafa district and a specialty coffee and cinnamon roll at Blackbird that's is just around the corner - at a safe and quiet distance. This large double bedroom apartment on the 6th floor lined with a large wall of historic wooden windows that open out to airy views where you can enjoy the evening firework shows that, Valencia - the land of firework shows, go off at the Arts & Science Museum in the far distance more periodically so than not.

A/C Splits cool the house in the living room and the master bedroom and the sofa pulls out into a super comfortable couch for all the friends and family that are going to beg to come visit you in Valencia!

You'll be delighted here!