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Post by irac on Dec 20, 2006 7:37:21 GMT 1
Darcy is right in relation to family or inherited homes, 100% so. There are a lot of "feelers" put out, testing the water and putting a massive price on a place to try hit the jackpot. In a lot of situations the vendor doesn't wish to sell, so they put an unrealistic price on the property, and if the agent doesn't know their stuff it's accepted, or else there's a cut instead of commission in place. In terms or apartments, usually the builder puts on their price, the agent adds another 1-300€ per m2 and then the fun and games begin.
It's not the government who can regulate it, but the agents themselves in a lot of cases. The local opcine/a can give a price guide, it's up to the vendors, buyers and agents to take the next step.
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Post by darcy on Dec 20, 2006 10:45:25 GMT 1
I am glad that Carol thinks that I am talking rubbish, that is good, looks to me I might be right.
In relation to the new developments, well, I think there is a huge shortage of supply and that is the reason why prices are so high. What is the reason - I do not know, Carol might know (I respect her opinion very much).
Overall, I think we cannot talk about any kind of valuation. For a valuation you need a market with some turnover and based on the settlement price, not the asking price. I would not consider any info from the local government, after all they do not care about the sale price, as contract prices are incorrect, and they say so. They do not use it as an estimate to calculate the tax any more, for instance.
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Post by Carol on Dec 20, 2006 11:58:38 GMT 1
Darcy - I don't know you, do I? Why are you being so offensive?
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Post by darcy on Dec 20, 2006 13:28:41 GMT 1
Carol - I do not know eaither. Sorry if I was offensive, that was not my intention.
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Post by mambo on Dec 20, 2006 19:31:36 GMT 1
Darcy,
Unfortunately there is not a shortage on the supply side, on the contrary I would say, the supply of apartments (new) is massive, we have an enormous overcapacity (at least in Istria) and many apartments are sitting there, empty, not much happening.
Another problem of the overcapacity is that the local people get less money per year for renting out their rooms. Since there are more rooms each year and the number of tourists is declining people are not renting their rooms for 8 weeks, but perhaps 4 tot 5 weeks in all.
One thing that I find amazing on this market is that everybody uses the same price per square meter. It does not matter if the place is close to the sea or 15 km inland, whether cheap or expensive materials are used, whether it is a house or an apartment, whether there is parking or not............they all have approximately the same price...........way too high !
Some people still think that you can build something, spending only 500 euro/square meter and sell it for 2500 euro/square meter. And every idiot who tells them that they succeeded will cause these people not to negotiate about the price.
A collapse of the market is the only way to bring reason in this market.
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Post by mark2 on Dec 20, 2006 20:18:01 GMT 1
As I said back in May and also in 2005 ......
"As for the price per square metre, this still annoys me, as I've said previously is a square metre of top quality granite flooring worth the same as a decaying square of 1970's concrete, what about location, view, neighbours, industry, noise etc etc"
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irena
Junior Member
Posts: 10
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Post by irena on Jan 25, 2007 12:00:32 GMT 1
Most Croats will buid their own house what is much cheeper. And I think one house is worth how much is sombody prepare to pay for it . We bought house near Zagreb and we know that we paid to much for it considering that it needed to be knock down( most of it ) and re build but we like it where it was and we paid. Now is worth much more but when I think back it would be better to build it to start with.
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Post by Madgolfer on Jan 25, 2007 15:02:40 GMT 1
OK, heres a classic example that has happened to us this week. We have a property that has been on our books now since May 2007. Old run down farmhouse etc etc etc. We have an interested (British) buyer who has asked if he could also buy some adjacent, "agricultural" land from the seller totaling 6000sqM. If yes he will buy the farm. The land has very dificult access if you do not own the farm.
Answer from the seller; "yes they can buy the land..............for the same price as the farm !"
The land has a genuine value of between €2000-€2600, he wants €40'000. Wheres the logic in that. This guy thinks our potential buyers are rich and he can get it. Its coming off our website today.
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Post by Carol on Jan 25, 2007 15:17:55 GMT 1
the best part of it is now that he has dreamt of having that money, the owner will be convinced from now on that it is worth that amount of money. Bet the next phrase you hear from him is "I am patient"!
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Post by yeslehc on Jan 25, 2007 21:22:26 GMT 1
there are 3 things that sping to mind, on this subject. 1/ when a croat sells he always overstates the price he actually got to his neighbours and friends to look smart. 2/ there is always the odd idiot that will pay the stupid price they ask, not doing anybody any good in the end. 3/ there are some agents out there that put properties on the web sites at any price the vendor asks, just to perhaps stop the vendor going to another agent , instead of having the b+l#s to tell them you will have no chance of selling at that price, come back when you get real
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Post by mambo on Jan 26, 2007 0:31:27 GMT 1
Well, there are also agents who simply write on the website that the buyer has to pay them a minimum fee of 2000 euro plus pdv, even if the price of the property is perhaps 10,000 or 15,000 euro.
Since when do I, as a buyer owe these idiots so much money for doing nothing ?
It is normal that the seller pays a fee, but for what purpose should I pay the agent ? Is he going to do a lot of work for me ? Do I get any warranty ? Is he taking responsibility for wrong papers ? Does he pay the legal fees ? There are even idiots who ask 50 euro if you want to see a house ? And on top of that you have to pay a fee if you buy ?
Where were they born ?
There is a real easy way to get around this. Simply go to the kataster, find the number of the property, track down the owner and deal with them directly. I would like to see the first real estate agent going to court over this. Good luck, I will see you in about 10 years, when perhaps the first court will reach a decision.
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Post by darcy on Jan 26, 2007 6:59:40 GMT 1
madgolfer,
I would like to thank you for bringing a little piece of sanity to the Croatian RE market.
You really cannot make the vendors to think reasonably overnight (that is their right and their property). What you can do is to treat the buyers with the same respect as vendors and do not treat them as the idiots.
Property valued for 2K (probably by comparing representative number of the similar past sales in the area, I hope) and listed for 40K makes potential investors to run away and RE agent to loose a client.
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Post by rijekafan on Feb 3, 2007 17:37:41 GMT 1
In my experience, the most accurate way to get a valuation in Croatia is to get a bank approved valuer to go over the place
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Post by Carol on Feb 4, 2007 5:20:34 GMT 1
do you know what that means in practice?!
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Post by rijekafan on Feb 4, 2007 13:07:56 GMT 1
Believe it or not foreign companies can with great hassle get loans for property here. Banks have a list of approved valuers for loan purposes. They provide the most accurate values.
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