Sunday, 4 September 2011

Sunday, 4 September 2011

The property market 2011

No doubt, since 2007, the property market has been tough, both here in France and globally. But having survived during these difficult years, I have become convinced that the only reason that a house does not sell, even in troubled times is it’s price.
I have lost count now of the number of owners who now admit that my original estimation was in the right ball park, and that their « valuation », which is normally based on original cost + cost of all works carried out + x%, was shall we say optimistic.
Vendors often want to build in a « margin » for negotiation as well, and this of course inflates their house price even further.
Beware ! When you are selling a property you will come across 3 types of agency, the first, stroking your ego by agreeing a high valuation for your property, in order to ensure that they get the mandat. The second, who will look to sell your property quickly, and give a low valuation, and perhaps try to tie you into an exclusive mandat deal, and the third who will try to give you a realistic valuation of what you can expect to get in the current market.
Don’t forget that if you bought between 2000 and early 2007, you purchased in the boom years, when Brit buyers were following the trails of « A Place in the Sun » and houses were selling, literally, like hot cakes. Since then, the market has changed dramatically, UK buyers are largely absent, and the young French buyers don’t want to live in rural France, they want to live in the towns and cities.
We find that the most interest that we have for a property is during it’s first 6-8 weeks on the market, known in marketing terms as the Product Life Cycle (PLC). It is crucial to get the pricing right during this early phase of the marketing, as this represents the best opportunity to sell the property. After the 6-8 week period, the property has reached « maturity » in this cycle, through it’s exposure on the internet and enquiries received. After that, it is a slow, steady decline, until some new impetus is injected, (in the form of a price reduction), when the cycle starts again on a smaller scale.
Therefore, you us to give you an accurate guide to pricing your property from the outset, and please don’t be tempted to try to factor in what the house « owes » you, or that margin for negotiation. At the end of the day the only real driving force for a sale in price.
A house in poor condition, or bad location will sell if the price is right. A beautiful house, in a great location won’t sell if it is above the market value in a difficult market. Peter Eliashttp://www.allez-francais.com/
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