Why Aren't You Benefitting From The Exchange Rate?
We’ve all seen the current exchange rate. Great for the sellers that are taking their funds back to the U.K., but not so great for the British that are looking to purchase Euros. The ongoing talks about Brexit isn’t stopping the British buyers still wanting a piece of what we already have…. This wonderful Spanish lifestyle and climate, but it does have an affect however, on their budget.
What the British buyers were intending on spending has reduced, due to the drop in the exchange rate, but if you as a seller, are repatriating your funds back to the U.K., then talk to your Real Estate Agent and let them know your situation, as this would mean you could be more flexible with your price.
You play a very active role in your own sale, bigger than you think, and knowing you can take a lower offer rather than voicing it to your agent, could make a difference of moving now, or moving at some point in the future.
If you’ve received an offer from a British buyer that doesn’t sound as much as you were hoping for in Euros, STOP! Don’t turn it down with a flat NO! Look at the bigger picture, and calculate what those Euros would convert back to, in Pounds. Don’t lose a potential sale because you can’t look past the amount of Euros it cost you to buy the home in the first place. What you need to think about is how many Pounds you will be able to buy with your Euros.
The difference of the current exchange rate at 1.11€/£, compared to when it used to be 1.28€/£, would mean an extra €22,000 for a British buyer purchasing a home for €150,000.
By reducing your price in Euros, to compensate the exchange rate, without compromising on your final price in Pounds, puts you in a greater position to sell above someone that’s leaving their money here.
So why not take advantage of the exchange rate now?
With all this in mind, you could be moving to your new home quicker than your international neighbours, because you’re the ones with more negotiating power!