Greek Bailout Could Prop Up Real Estate Prices

Uncertainty breeds falling prices, as every investor knows

, and the uncertainty that came with Greeces economic future has been one of the factors in the overall softening of the Greek property market. The bailout may well provide a solution.

Those looking to sell property in Greece have faced quite a bit of uncertainty. Is now the time to sell? Should I hold out to see if the market begins to go up again? The good news is that the Greek bailout will likely firm up property prices as the uncertainty in the market begins to fade. Buyers who have remained on the sidelines will begin to look at property again, and tourists who have stayed away will return.

Another consideration for buyers will be currency rates. As the Greek markets stabilise, currency fluctuations will likely not be as extreme as in the recent past. That means buyers can expect the currency from their country to be worth about the same at closing as it was when they signed the purchase agreement. Even cash deals do not close on the same day they are signed, and for a cash investor this can make a large difference in the eventual price of the property being purchased. Currency rate risk can be one more uncertainty that an investor does not want to take, so the bailout will be good in that regard.

Buyers from the UK have typically made up a major percentage of Greece property buyers, and the Pound Sterling has remained a very stable currency against the Euro. This could well bring back potential buyers who pulled away during uncertain times. In addition, the turmoil that other countries such as Spain are now experiencing could serve to push buyers toward countries that appear to have weathered the storm, including Greece.

All of these factors combine to make this a potentially opportune time to market your Greek property. Of course, you will likely want to market to overseas buyers, so finding an agent who specialises in this type of transaction is key. Ensure your property is clean, well maintained, and outside areas (if you are responsible for these) are in the best shape possible. You want photos of your property to reflect pride in ownership, which is something that will attract a potential buyer.

Ensure you have everything in order to ensure a fast closing--and put that in your advert. If your buyer wants to pay cash, he or she will not want to be exposed to the financial markets longer than necessary, and your ability to close quickly can keep your buyers interest rate risk exposure to a minimum.

by: James P Martin

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