News Article Date: Monday 27th of July 2009
ASBOM is not another acronym for dealing with delinquent youths. Instead it stands for ‘Almost Sold Back On Market’ property which is now littering estate agents books.
As the financial crisis deepens more sales are stalling at the eleventh hour usually when purchasers have been faced with tricky unforeseen circumstances.
Chris Mercer, director of Spanish property specialists Mercers, said: “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 property and Fly to Let investors as they will now have more negotiable price-tags as the vendor becomes more desperate to sell.
Current ASBOMS on the Market include Villa Rosa near Arcos and Jerez, Costa de la Luz.
This four bedroom country home was first on the market in summer 2008 at €595,000 and 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 as the owner has already relocated to America and is eager to sell. Villa Rosa has many attractive 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.
Another sale that fell through involved Palacio Porvenir in Jerez a vintage family home dating back to 1858 which was first on Mercer’s books in 2007 at an asking price of €1m.
The property has a central courtyard and many original features from Frank Lloyd-Wright inspired stained glass to hand-painted ceilings with frescoes of countryside landscapes, is now back on the market at €850,000.
Plaza Mendoza in Jerez was bought by an English owner in 2007 for €305,000.
This three bedroom converted bodega was put back on the market this year for €250.000 due to some health problems and was ‘sold’ to a couple at a property exhibition in London this April for below asking price. But when the vendor refused another reduction due to some maintenance issues 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.
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