Is it possible to get another gem for a modest amount? Yes ... that is still possible, but it depends very much on the circumstances. And they often change from case to case. Nevertheless, there is a tendency to be observed.

Falling prices

Indeed, the main trend is for prices to fall. The differences between asking price and selling price are sometimes considerable. With an emphasis on sometimes. Because I have already supervised a number of sales in which the asking price was paid because the object was already very competitively priced. That is a trend that we have seen more often recently. The objects often have a more realistic price level compared to a few years ago. That is because there is a greater need to sell. Often families own several properties and that simply costs a lot of money in real estate tax every year.

How do you know if a house is realistically priced?
I limit myself to my work area Le Marche because logically I have gained the most experience here. There are roughly four parameters that determine the asking price of a house. Number one is the proximity to the coast. The closer to the Adriatic Sea, the higher the price. And of course I am talking about that detached house in natural stone with a nice piece of land and not about an apartment in a palazzo. A second important factor is the presence of soil. Agricultural land has a value that has seen little variation over time. Not only the amount of land, but also how it is classified. One hectare of olive grove is more expensive than one hectare of forest. A vineyard is number one on the list. Again, the closer to the coast, the more expensive the land. A vineyard with Verdicchio grapes a few km from the coast? Priceless ... These prices can all be checked on the site of the Agenzie delle Entrate. A handy tool that I also use when I have doubts about the pricing.

A factor of importance is of course the surface and the condition of the object. But here too there are a number of additional factors that influence the pricing. It is not the case that the more square meters the house has, the higher the price. It mainly concerns usable square meters. Often the ground floor of farms still to be restored is too low to function as a residential destination. An attic or a garage are also not fully counted in the calculation of the number of square meters.

A fixer-upper is also always a bargain?
The state of the object remains as the last parameter. In theory, it should be the case that the purchase of a fixer-upper should be more advantageous than the purchase of a turnkey home. But the reality is different: Turnkey homes are often more favorably priced than the purchase of a fixer-upper, including the cost of the restoration. In the latter case, you are almost always more expensive. This is partly because a lot of work cannot be done by the handy do-it-yourselfer. In all cases it is wise not to let the price per square meter, calculated on the basis of purchase and renovation, exceed that of a comparable existing home. A good interim solution is a house in shell condition.

The conclusion is obvious: Get well-informed so that you get a clear picture of whether the house where you caught your eye is actually a good investment.