Sometime you can pull your hair out with clients and there totally unreasonable expectations
and then you have to realise its not their fault There has been a lot of misinformation posted on the internet (about 70% in my opinion) about Spanish bank repossessions and distressed sales so much so I felt compelled to write this article and explain to the property buyers out there what the real situation is for the property Spain market.
Google's motto is content is king but not when the content being posted is at best miss leading so lets first deal with Spanish bank repossessions and why they are different in Spain to other EU Countries. The reason is a very simple one is Spanish banks up until now haven't been prepared to sell for a loss thus making the majority of Spanish bank repossessions very expensive. A good example of this was a 2 Bed repossession on Los Arqueros Golf that CAM Bank had for sale at 240,000 and we had bigger, better and newer Apartments from Taylor Wimpey for under 200,000. Saying all of this the situation is now beginning to change due to the pressure being applied on the banks from the Bank of Spain to liquidate some of there assets.
As for distressed sales this is a much better option as basically its an owner who needs to sell quickly and therefore due to their circumstances are prepared to sell well below market value. This also can be a developer with key ready new developments that no one wants to buy at their original price. The only problem with distressed sales is they are far less in number than they were a year ago and because the overall world recession is over and they are not under the same pressure to sell. There is still the odd distressed Sale but not nearly the number for 2009 in the property Spain market.
So moving forward we have come full circle with bank repossession being more interesting than distressed sales but the reality being that these deals will not be head and shoulders above the rest of the market. This is how it really is not how you read it on the internet.