{"id":3942,"date":"2010-04-20T06:00:13","date_gmt":"2010-04-20T04:00:13","guid":{"rendered":"http:\/\/http:\/\/www.iliaspapageorgiadis.ro\/en\/?p=3942"},"modified":"2015-01-26T20:04:57","modified_gmt":"2015-01-26T18:04:57","slug":"amazing-too-many-owners-rose-their-prices-without-having-any-client-to-sell-to-why-who-benefits-who-loses-what-is-coming-up","status":"publish","type":"post","link":"http:\/\/www.iliaspapageorgiadis.ro\/english\/2010\/04\/20\/amazing-too-many-owners-rose-their-prices-without-having-any-client-to-sell-to-why-who-benefits-who-loses-what-is-coming-up\/","title":{"rendered":"Amazing! Too many owners rose their prices, without having any client to sell to. Why? Who benefits? Who loses? What is coming up?"},"content":{"rendered":"<p style=\"text-align: justify\">\n\tSince the beginning of the year, we have several people trying to push up the prices of Real Estate properties. Even without clients (!) they seem to have succeeded to move the asked prices upwards. In the same time, the real prices are the same or even a bit lower than the ones of December 2009, when we talk about the real numbers of transactions. Why does this happen? Who loses from this? Who benefits? What will happen afterwards? <a href=\"http:\/\/www.bloombiz.ro\/real-estate\/imobiliare-de-ce-ridica-proprietarii-preturile-in-plina-criza\" target=\"_blank\">An interesting article<\/a> by <a href=\"http:\/\/www.bloombiz.ro\/\">www.bloombiz.ro<\/a> can explain to you the situation today for several&#8230; &quot;dreamers&quot;.\n<\/p>\n<p style=\"text-align: justify\">\n\t<strong>Why do owners ask for more, without having any clients to sell to?<\/strong>\n<\/p>\n<ul style=\"text-align: justify\" type=\"disc\">\n<li class=\"list\">\n\t\t<strong>Some simply got&#8230; bored asking for less<\/strong>. They don&#039;t think with business criteria ofcourse, their approach about the market is stuck to the 2006 &#8211; 2008 period.\n\t<\/li>\n<li class=\"list\">\n\t\t<strong>For many it is a matter of pride<\/strong>. Confusing feelings and self esteem with business, they<!--more-->think that if they will ask for more, they are more important too.\n\t<\/li>\n<li class=\"list\">\n\t\t<strong>They think they follow a&#8230; strategy<\/strong>. They were used to change prices every day, every week. This was creating a feeling of insecurity to the clients, who wanted to buy before the prices to go up. Now too many owners think that if they will try to create the same feeling, clients will return and the prices will start their rally again.\n\t<\/li>\n<li class=\"list\">\n\t\t<strong>They saw Ron rising against Euro<\/strong> <strong>and thought that the Romanian economy is strong again<\/strong>. They didn&#039;t care to hear that the GDP is still on negative trend, for 6<sup>th<\/sup> consecutive quarter (started in the last quarter of 2008). They didn&#039;t care to check that Euro was down towards all currencies, not just Ron.\n\t<\/li>\n<li class=\"list\">\n\t\t<strong>Some media try to flatter their ears and promote the &quot;upcoming price rising&quot;. <\/strong>People who are thirsty for good news translate in their own way any news they read \/ hear \/ watch. And some media play this game since the beginning of the year.\n\t<\/li>\n<\/ul>\n<p style=\"text-align: justify\">\n\t<strong>Who loses from this new unjustified &quot;trend&#039;?<\/strong>\n<\/p>\n<ul style=\"text-align: justify\" type=\"disc\">\n<li class=\"list\">\n\t\t<strong>The owners<\/strong> <strong>first, especially the ones who really need to sell<\/strong>! They will get blocked, staying with their properties for a much longer period, as they send to their potential clients the absolutely wrong message.\n\t<\/li>\n<li class=\"list\">\n\t\t<strong>The market players<\/strong>. From the majority of Real Estate consultants, to notars and ofcourse the Romanian state itself, as the taxes will be less. Plus the economy will remain blocked, without the &quot;Real Estate locomotive&quot; which drove the economy for several years.\n\t<\/li>\n<li class=\"list\">\n\t\t<strong>The market and its potential<\/strong>. Everything that we expected to happen will delay, as only transactions move a market, not just &quot;asked prices&quot;.\n\t<\/li>\n<\/ul>\n<p style=\"text-align: justify\">\n\t<strong>Who benefits?<\/strong>\n<\/p>\n<ul style=\"text-align: justify\" type=\"disc\">\n<li class=\"list\">\n\t\t<strong>A special category of owners<\/strong>. The real businessmen are very comfortable with this new situation. They prefer the prices to remain artificially high, let us say by 30% higher, in order for them to be able to sell at the real prices of today (and these to be considered as deducted ones). Like this they will avoid selling at even lower levels. (Because if you didn&#039;t notice, if the clients will not receive a deduction, they will not accept to buy anything at all). So, instead of reducing their price furthermore, the real businessmen enjoy watching so many people rising theirs. This will allow them to conclude their deals, without stress.\n\t<\/li>\n<li class=\"list\">\n\t\t<strong>Some Real Estate consultants<\/strong>. Flattering the ears of owners, they hope to get them as clients. Even if they will not have any transactions today, they hope that they will create the necessary relation, in order to sell in the future, when the clients will return. What is this strategy? They try to present themselves as the ones who &quot;understand the real value of the property&quot;, so as to be chosen by the owners who want more money and will think &quot;ah, this is my man, he knows what my property really worths&quot;.\n\t<\/li>\n<li class=\"list\">\n\t\t<strong>The patient investors &#8211; buyers<\/strong>. The economy is still in a negative trend, too many citizens get fired, too many people will urgently need money throughout the year. When they ask for crazy prices, they lose time and they will be forced to sell with lower ones, once they will need the money &quot;right here, right now&quot;. And then transactions will start again&#8230;\n\t<\/li>\n<li class=\"list\">\n\t\t<strong>The &quot;loan sharks&quot; <\/strong>&#8211; <strong>&quot;camatari&quot;<\/strong>. When people get blocked, either they sell, or they try firstly some &quot;alternative&quot; methods. Unfortunately they will lose much more by this option, but&#8230;\n\t<\/li>\n<\/ul>\n<p style=\"text-align: justify\">\n\t<strong>What is coming up?<\/strong>\n<\/p>\n<ul style=\"text-align: justify\" type=\"disc\">\n<li class=\"list\">\n\t\t<strong>Higher prices will block the transactions<\/strong>. Only when the price will be reduced, a client will be initiated to invest.\n\t<\/li>\n<li class=\"list\">\n\t\t<strong>Foreign investors will remain idle<\/strong>, waiting for prices to return to reality.\n\t<\/li>\n<li class=\"list\">\n\t\t<strong>The period of stability will be endangered<\/strong>. We were hoping for stability to come, when the prices would reach a level where the transactions could start again. As people rise their prices without clients to follow, we delay to reach bottom and stabilize there, blocking the owners and the market too.\n\t<\/li>\n<li class=\"list\">\n\t\t<strong>Things will worsen from September<\/strong>. It always happens like this when a market is moving in a downwards trend. For various reasons.\n\t<\/li>\n<\/ul>\n<p style=\"text-align: justify\">\n\t<strong>&quot;So you ask me to sell my property for nothing?&quot;<\/strong>\n<\/p>\n<p style=\"text-align: justify\">\n\tThis is the question that many people will ask after reading this post and probably several ones will also curse me too. <strong>No, I don&#039;t ask people to &quot;lose money&quot;, their properties belong to them and they can ask whatever they like. Actually, if one does not need money, he should simply sit and wait for better years<\/strong>. But today&#039;s situation (&quot;we rise the prices, wait and hope for clients to return&quot;) will become a boomerang for the owners, hurting their real interests on the long run. Plus it will cause the catastrophe of the ones who would sell for today&#039;s prices, but they heard the others and rose their request, blocking themselves even if they needed money.\n<\/p>\n<p style=\"text-align: justify\">\n\t<strong>Prices will rise when investors will return, not when some people want to<\/strong>\n<\/p>\n<p style=\"text-align: justify\">\n\tThis is a common truth that many people insist refusing. <strong>Romanian market was driven up by the interest of foreign investors and the strengthening of Romanians too. Also the banks helped a lot, plus the rest of Europe had become too expensive. Do you see any of these factors active now? No. How will we have higher prices then?<\/strong>\n<\/p>\n<p style=\"text-align: justify\">\n\t<strong>Some people say: &quot;If reality does not match with what I like to believe, too bad for the reality&quot;. I wish them not to pay expensive this approach&#8230;<\/strong>\n<\/p>\n<p style=\"text-align: justify\">\n\tPS. No, &quot;Prima Casa&quot; properties are not part of today&#039;s post. They are a different market, where the State provided guarantee. This is why the banks give loans and there are many clients interested. I refer to the rest of properties, with significantly higher value than 60.000 &#8211; 70.000 euro.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Since the beginning of the year, we have several people trying to push up the prices of Real Estate properties. Even without clients (!) they seem to have succeeded to move the asked prices upwards. In the same time, the real prices are the same or even a bit lower than the ones of December [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":59454,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[216,17,204,236],"tags":[],"_links":{"self":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts\/3942"}],"collection":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/comments?post=3942"}],"version-history":[{"count":0,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts\/3942\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/media\/59454"}],"wp:attachment":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/media?parent=3942"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/categories?post=3942"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/tags?post=3942"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}