BuySellBA
Administrator
Hard to haggle: Reductions in the sale price of homes fell to 5% of the published values - Infobae
Source:
Duro de regatear: las quitas en el precio de venta de viviendas cayeron al 5% de los valores publicados
El sinceramiento de valores revirtió la tendencia. Ahora, 8 de cada 10 publicaciones están alineadas con el precio real. Si prosperan los créditos hipotecarios será más fácil vender. Precios por m2 y por zona
www.infobae.com
June 9, 2024
The honesty of values reversed the trend. Now, 8 out of 10 posts are aligned with the actual price. If mortgage loans prosper it will be easier to sell. Prices per m2 and per area.
A person hands over the key to an apartment in a home buying and selling process at a time when buyers do not usually accept large discounts on the publication price (Illustrative image Infobae)
Haggling prices when buying and selling homes is an art that is still valid in the Buenos Aires market, although aggressive counteroffers no longer have as much place, as the market is showing signs of recovery. According to sector data, operations closed so far in 2024 show a negotiation percentage that oscillates around 5 percent.
Sellers are increasingly aware of the market value of their properties and this is reflected in a change in market dynamics: both parties are more realistic in negotiations.
According to Nahuel Achával , commercial coordinator of Toribio Achával, the maximum percentage that sellers agree to lower today is closely related to the urgency of the owner and the time the property was for sale. “In recent months, there have been no owners accepting offers that imply a reduction of more than 10%; “The market is beginning to reflect price stabilization, which limits concessions in negotiation,” he explained to Infobae .
The real estate market has come clean and “cleared” itself considerably of overpriced properties and is preparing to observe the impact on demand of the reintroduction of mortgage loans. Real estate agencies argue that inquiries grew by 25% in the last month.
Achával mentioned that a year ago only 4 out of 10 properties were aligned with market prices. Today, the dynamics have changed and the majority of properties enter the market with values adjusted to the current reality. “This favored an increase in the number of operations closed in the number of deeds, which with the data from last April confirmed that it was the best start to the year after 6 years.”
Currently in CABA there are estimated to be around 67,000 apartments for sale and in the province of Buenos Aires close to 300,000. It is estimated that, of every 10 properties that enter, 8 are well valued.
It is essential to understand that the dynamics of publication values are different from those of closing (actual sales prices). “For at least five years, apartments were accumulated at values that the market did not accept, which distorted the market. Today, publishing values have stopped falling for the first time in years, which is good news; It implies that the values have been sincere to a large extent,” said Juan Manuel Vázquez Blanco , economist and general manager of Fabián Achával Propiedades, which makes Radar Inmobiliario.
It is vital to negotiate well
From the segment they advise both supply and demand to take advantage of the current moment to negotiate and reach agreements and especially from the relaunch of mortgage loans . “The market is taking temperature, with high levels of inquiries, visits, reservations and closings,” said Nahuel Achával.In the northern corridor of the city of Buenos Aires, the prices of used and brand new apartments range between USD 140,000 and USD 160,000 for a two-room apartment of 55/60 square meters, and between USD 210,000 and USD 230,000 for a three-room apartment of 75/60 square meters. 80 m2. In the west and south of Buenos Aires these prices drop by up to 35% depending on the neighborhoods.
Purchasing a home requires several steps, among them it is common to visit the property and propose the publication price (Illustrative Image Infobae)
In general, on lower value properties (less than $120,000), sellers often do not lower the listing price. Vázquez Blanco said in this regard: “This 5% is substantially lower than the 7% seen last year. There are still properties published at market values from another era, but there is a strong renewal of the offer with properties recently published at more realistic values.”
The market underwent a cleansing process from early 2023 to the present, with hundreds of new properties on offer and more aligned with current market values. It is crucial to be well advised and have market analysis tools and closing prices to make appropriate publications.
Depending on the area and quality of the building, prices vary significantly. For example, a brand new two-bedroom apartment can cost between USD 70,000 and USD 90,000 on average, while a three-bedroom apartment can be between USD 120,000 and $150,000.
“If these are used properties, the values are usually at least 10% lower than those of brand new properties,” concluded Vázquez Blanco.
www.buysellba.com
