Negative equity?


I used to think the slump in the Bansko property market was a natural rebalancing after the Bansko property bubble burst. However the regular complaints of estate agents this winter seem to indicate otherwise. A more sinister force is at work. The fixed price commission. As prices for Bansko Apartments plummeted in 2008 and 2009 agents managed to convince desperate sellers that percentage commission was no longer acceptable and thus fixed commissions. No longer was the main driving force the price of the property but now it just came down to VOLUME! The more apartments we can sell the better, and the easiest way to shift a lot of product? You guessed it, sell ’em cheap!  So the sales pitch now is double edged, to the seller “the market is very depressed, we are only getting sales for property around the 300 euro/m2 range” to the buyer “Buy now properties are at record low prices”  and the only winner? Yup you guessed right again, the agent.