Spanish property market faces upsurge in ASBOMs

Don’t panic, Zapatero hasn’t been taking tips from the Brits on how to handle delinquent youths, instead it’s the massive rise in “Almost Sold Back On Market” property littering estate agents books. As the financial crisis deepens more sales are falling out of bed at the eleventh hour with purchasers facing tricky unforeseen circumstances.

Chris Mercer, Director of Spanish property specialists Mercers, comments, “We’ve certainly spotted a marked trend for house sales that are near, or at, completion and then break down at the final hurdle. The reasons are varied, but most relate to the current precarious global economic situation. Banks may withdraw their mortgage offer at the last minute, the purchaser perhaps suddenly loses their job or simply gets cold feet at the enormity of the financial commitment. The ASBOM trend will be an enduring one – highly frustrating for agent, purchaser and particularly the vendor.”

Disappointment on the vendor’s behalf at clinching a deal only to see it slip away will often make the ASBOM very attractive for the next buyer that comes along. Already the best homes on the agents’ books, they will now have more negotiable price-tags as the vendor becomes more desperate to sell. If the next chapter of life was put on hold after the previous completion collapsed, this desperation can be quite significant. The second bite of the cherry could be much sweeter for the buyer of an ASBOM.

ASBOMS on the Market:
JER110 Villa Rosa nr Arcos and Jerez, Costa de la Luz
First on the market in summer 2008 at 595,000 euros, this four bedroom country home on an impressive 5,202m² plot was ‘sold’ in June of this year for substantially below asking price. Just 24-hours before the notary appointment the Spanish buyer got cold feet and pulled out - despite full mortgage approval. The property is now an ASBOM at 465,000 euros as the owner has already relocated to America and is eager to sell. Villa Rosa is in excellent condition and has many spectacular features including a separate ‘casita’ with rooftop terrace, large 14m x 6m swimming pool, orchard, double garage and gas central heating. 20 minutes from Jerez, 15 minutes from Arcos and 35 minutes to the beach.
Price 465,000 euros (was 595,000 euros)

JER137 Palacio Porvenir, Jerez
First on Mercer’s books in 2007 at an asking price of one million euros, this vintage family home dating back to 1858 was ‘sold’ last month to an English doctor. The grand residence with at least seven bedrooms was ideal for having a clinic within the same building as his home. After a game of offer ping-pong the Jerez-born owner verbally accepted a fair bid and the deal was ready to move to completion. Sadly the palace became another ASBOM when the vendor moved the goal posts in asking the purchaser to pay both the agent commission and his capital gains liability. The verbal agreement had been compromised. The property is now back on the market at 850,000 euros, although the English doctor hasn’t completely exited negotiations. Palacio Porvenir has a central courtyard and many original features from Frank Lloyd-Wright inspired stained glass to incredible hand-painted ceilings with frescoes of countryside landscapes. Built over 847m² the home has four bathrooms and two kitchens as well as a private rooftop terrace, rear garden and garage.
Price 850,000 euros (was one million euros)

JER075 Plaza Mendoza, Jerez
Bought by an English owner in 2007 for 305,000 euros, this three bedroom converted bodega was put back on the market this year for 250.000 euros as health problems prevented the owner from travelling to Jerez. The property was ‘sold’ to a couple at a property exhibition in London this April for below asking price and on course for completion. Unfortunately a British surveyor from Gibraltar highlighted a couple of maintenance issues which the couple wasn’t prepared to take on unless the vendor slashed a further 60,000 euros off the price. The vendor refused as the reduction was unreasonable and the property became an ASBOM. The apartment, which incorporates many original features from wooden ceiling beams to window shutters as well as state-of-the-art modern bathrooms and kitchen, is now under offer again at 190,000 euros.
Price 190,000 euros (was 325.000 euros)

For more information, visit spanishproperty.co.uk