The high starting price, the urgency of the sale, the lack of knowledge about the actual property prices of a particular area, the upcoming renovation work in the residential area are just some reasons why most properties end up selling for a lower price. Skilful negotiation can reduce the starting price by up to 20%, which often happens when selling a Spanish house.
As a rule, both sellers and buyers realize in advance that they cannot do without bargaining during negotiations. As a result, the former deliberately inflate the price, knowing that the buyer will ask for a discount. Furthermore, a step away from being the owner of a new apartment, realizing the rules of this game, does not lose sight of the opportunity to get a discount.
According to the latest statistics from the General Council of Notaries, the average price per square meter in Spain was 1,473 euros in June. However, Pisos average price for properties for sale that month on the portal was 1,845 euros per sq.m.
The difference is also visible at the regional level. Again according to Pisos, if in June the average cost of housing was 3 054 euros per sq.m. in Madrid community and 2,476 euros per sq.m. in Catalonia, then the General Council of Notaries marks these figures lower - 2,296 and 1,887 euros per sq.m. respectively.
While it is evident that sellers can find it challenging to get accurate data on property prices in their area, many who want to sell a house set extremely high prices, guided by their financial ambitions.
In other cases, the prohibitively high value declared by the owner is due to a biased assessment of the house characteristics. In this sense, the value of the seller's property is influenced by the emotional factor, their affection, which can make it difficult to perceive shortcomings, etc.
Whatever the reason, setting the starting price too high can negatively impact your chances of selling your house. If there are other houses with similar characteristics that are cheaper, the sale can be delayed for a long time, and as a result, the seller will have to put the price even below market value.
Another negative consequence of an overpriced starting price is an increase in the duration of the real estate sale. The more time passes, the more nervous the seller becomes, especially if they initially counted on a quick sale. As a result, due to emotional instability, the owner may even agree to a considerable discount for a potential buyer.
When discussing the cost, the buyer may have objective reasons to ask for a discount - this is all about the property's condition. For example, what is the condition of the walls, cladding and decoration, whether the hot water supply and heating systems are functioning, whether the drains need to be replaced or repaired, and so on?
In addition to the difficulties above that may require a house renovation, the purchase of real estate may entail other unforeseen expenses, for example, utility bills, which the buyer may designate as high and therefore ask for a cost reduction.
The property location, for example, being in a busy area where noise is possible at night, the lighting quality, the room temperature are also aspects that a buyer interested in a house will appreciate and can ask for a discount.