The market in Armenia can only be described as “dreamy” but the word likely fits what is going on in many parts of Colombia, sellers, for the most part, are dreaming. The country has become a popular destination for retiring expats, as well as those not close to retirement, and the locals are trying to take advantage of that. Of course, there is a difference between what one asks and what a property sells for.
We are not sure what is driving the frenzy, there seems to be a mentality that when a listing doesn’t sell for months, some for longer, raise the price. Our experience has been the opposite. We suspect some is caused by agents telling sellers that the market is going up overall and that the seller should raise their price to stay in step. But in many cases the asking price has been wrong from day one so they just continue the scenario. And who wouldn’t ask for more when the real estate “expert” tells them that they can get more?? We have had two showings recently where the listing agent has told our buyer during the showing that the asking price is being increased, one on a property for sale for over two years. What are they thinking??
Our advice is to learn everything you can about the market, see as many similar places as possible, a dozen or so wouldn’t be overdoing it, don’t “fall in love” with any of them, and above all, be patient. If it takes months, a year, so be it, once a gringo premium is paid it’s gone forever, so take your time. There are good values to be found, it might take a little longer than you are used to, but they are out there. There are no MLS comparables to help, of course in Colombia, with sales frequently reported for less than the actual price, that would be useless, the onus here falls entirely on the buyer. If one is not prepared to invest the time, the risk of overpaying increases, if what you are getting looks expensive, then it probably is.
If you think that we can help steer you through the maze, this is a time consuming process, and requires a complete buy in, then give us a call. We know the market well after living in Armenia for over eleven years and will do our best to see that you pay no more than market value. We look forward to hearing from you.