12/01/2014Questions and Answers: Filippos Zervas

sankinazervas Property Services has shown a quite  different approach to the selection and management of  the properties for sale .  How would you describe it? 

sankinazervas provides a unique blend of experience, competence, innovation and efficiency. In the property market, there are some inviolable rules of behavior, and based on them we added actions that will lead us to the contracts. For example we work only with 30 properties per partner, so they apply more activities for the properties, and they do not stand still and “freezed” on the market. But we keep track of the whole market area per partner, so that we maintain  local expertise, to advise better the prospective sellers and buyers. That way, we achieved  contracts with our customers. I am involved and specialized in middle and high end segment of Porto Rafti, and have the corresponding contracts. 

You mean there is result, although people complain that there are no transactions? 

Of course there are transactions. Less than in 2009, but there are. In fact the best properties of each class, are sold to the financially strongest of the prospective buyers. There are certainly many properties which cannot find a buyer, perhaps even years after being placed on the market, but this is normal because the offered properties are clearly more than the available buyers. 

How do you define "Best Properties" and who are the “Financially strongest of the prospective buyers “? 

In my area, Porto Rafti, best properties are those closer to the sea - especially those with sea view – which additionally have interesting architectural design and decoration, and are offered at a realistic price. Financially strongest prospective buyers are those offering the most competitive money on any given property, in the shortest time.  

Wouldn’t you say that the success of a contract, is based on  the intensity of the need to buy or sell a property? 

Unlike the majority of public opinion beliefs, the intensity of the need to sell or buy, has only minor effect to the final result. Success factor, in my experience, is the intersection between supply and demand. For example, no vendor, no matter how much he/she needs the money, would ever accept an amount of 200.000 €, when can have - on a quite short timeline - 300.000 € by another candidate / s. On the other hand no buyer would agree to pay for the same real estate 400.000 €, because the owner declares no need of money, and at the same time can find similar property proposals on the market with 300.000 €. The intensity of the need to sell or purchase in my opinion is an opaque and speculative factor, but supply and demand are transparent and actual factors. The reason for this shift is the modern, better access, of all sides, to the real estate buyer and seller tanks. And of course, the better and real time information created by the internet.

Many owners ask, if now is the right time to sell. What’s your opinion? 

It depends on the time horizon of sale. If the time horizon, is something like 5 to 10 years, then no. The value of the property will probably rise or at least will be maintained, while some owners will live a few more years in their home. If it’s a time horizon of 2 to 3 years then there is no reason for delay: Nothing can dramatically change in the market within two or three years. Generally speaking, however, I believe that real estate should not be sold. But if such a decision is taken, then it should be done correctly and fast. 

What’s  with foreign prospective buyers? People say, they pay better ...

They too are people having access to the available properties in the market. I do not agree that they generally offer  better money than Greek citizens. In the contrary, at most cases, they fail to understand why Porto Rafti's properties have such a high value. In a minor percentage, they too have their market share. I would say that property sellers, at the end of the day, are considering the amount of money on the table, and not which nationality is the money. It's a worldwide myth, for example, German vendors are betting on the wealthy Chinese buyer, and the Chinese vendors depend to the rich German. But the point isn’t who has the money, it is about how much is offered. Rarely a foreigner would bid high outside his/her country.  

There is a general belief, that because of the crisis, there are many "bargains" in the market. Is that the case?

Yes I agree with that. Especially for the area I work, I can say that many houses are offered in prices lower than their developing costs. However, in my humble opinion. the big bargain of the times, is that buyers can choose exceptional properties in excellent locations, which without the crisis wouldn’t even be for sale on the market. The so-called "bargains" today in Porto Rafti, always in my personal opinion, aren’t the "killed" as people say in real estate, but those with realistic price, good architecture and positive location, that may become in time, un – approachable. Just think about the options a buyer of Porto Rafti had in 1985, and options of today’s market. Coastline is almost sold out, and usually, buyers settle for something a little further to the sea …

What would you advise, those who are actively engaged in buying or selling real estate?

Carefully select professionals to collaborate with, and aviod rumors, promises and dramas. When the documents open on the table, nothing stays secretive, only facts and figures apply.