During the whole month of July, Spanish investors continued making offers on properties below the market price. The average requested reduction was 20.9% at the end of the month, according to Idealista (Spanish property portal). The portal analysed more than 2,100,000 presented offers by potential investors to the sellers since the beginning of 2010. This number is slightly lower in comparison to last year, during which the average discount was 21.6%.
By taking a look at the regions of Spain, the biggest registered gap between sellers and investors was in La Rioja, in which investors demanded an average discount of 23.6% off the selling price. In Madrid’s case, the amount of investors and sellers are the closest to each other in comparison to other cities. Madrid is also the city, in which requested discounts are reduced the most.
As we all know, at Housers, we facilitate the process of boosting the value of properties by targeting them below the market price and refurbishing them into a prime and appealing condition, as well as letting the market boost the value of them in time. By the time the apartments are put on sale, the value has gone up dramatically, which makes each and every Housers project profitable. And this is the whole reason why we believe it is more fair to our users to take a 10% cut of the profits rather than the contribution. We do it because we are convinced that each project will generate enough return to keep our users happy and to be able to continue our operation.