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Why Would You Use An Estate Agent Buying A Property In Spain - Part 5
Who would want use an estate agent? Part 5 Last article we looked at whether you need to use an agent. If after all that you decide that you can do a better job on your own (What are you mad sir?) then here’s some advice on how to go about it. This article we look at how to go about it as a buyer. Next article we look at the sellers perspective.
DIY estate agent – going it alone in the brave new world – as a buyer
1. Choose an area
Probably the most important criteria – you should consider such factors as:
• Do you need to work?
• Do both of you drive,
• Do you speak Spanish,
• Can you handle isolation, or Do you like the hustle and bustle of City life
• Do you want to be by the beach or inland, and many more criteria?
• Do you need to be close to schools, hospitals, airports, motorways, amenities or bars.
Make a list of important criteria and ask yourself will that area support your lifestyle. This can be done on the internet but go visit the area first before you decide to buy there. Spend time in there before considering buying, better still rent out for a few months.
2. Do your research.
Find out realistic prices for the type of property you are looking at. Look in estate agents windows, in local papers – get a feel for what is a good price for what you want. Establish a base for calculating the price of property based on the sq Metres of land and build for that area. This will give you a rough and ready guide so you can discount or include a property initially because of price.
3. Produce a checklist of important criteria
If you use a computer you can do this in excel. List all the criteria that are important to you and when you visit a house make sure you note all the criteria and make a score. Do this at the time of the visit not afterwards – when you have seen 3 or 4 houses everything blurs into one. Ideally take photos of each house.
4. Locate property in that area.
Easier said than done – where on earth do we start.? Well the following is a small list of ideas to find property – but not exhaustive - sure you can think of more ways.
a. Newspapers (Inland Trader, CB News, Mira casa, Tu Casa La safor guia, guia, and many more).
b. Spanish Newspapers – Levante, Seginda mano/Trajin
c. Internet sites
d. Se Vende Signs
e. Ask in bars (you need to speak Spanish mostly)
f. Ask people you see in shops – do they know anyone who is selling a house in the area.
g. Stick a wanted notice in the paper – people do respond to them
h. Ask people you know
The internet is a good source of information, use search engines and be specific –townhouse in Oliva, piso in Xativa, villa in moraira You can also pick up a copy of the local Spanish Papers (in the Valencia region a great source is Levante). These have property adverts by Spanish People. You may find these comparatively cheaper than similar properties in the English Press.
Drive out and look for Se Vende Signs (for Sale), ask at bars, in streets and anywhere (obviously requires a knowledge of Spanish) Many properties are for sale but not advertised Many a time I have asked about property to be told that a cousin has a house for sale – and the prices being asked may be considerably less than you find in the estate agents. .
5. Negotiate your price
Once you’ve found your house you’ll put an offer in. One word of advice. A lot of property on the market means few buyers, and very few houses are so popular that you need to get in quick. Always walk away from the house and take a day to think about it. Overcome your natural enthusiasm and excitement. Once you have slept on it go back and have at least a second look at the property before considering an offer.
This time though look objectively, Pay attention to details. Once you have placed an offer you will most likely need to negotiate – see a future issue for this as this is an art form. Remember you will generally have the upper hand because there are few buyers around and lots of houses.
6. Instruct a lawyer to arrange the contracts
You should have already identified a lawyer before looking at houses but if not now is the time. There are a number of good lawyers about and you should choose one you feel comfortable with and speaks your language. A lot of problems come about because of a breakdown in communication. Speak to at least 3 lawyers and only go with them if you feel comfortable.
At this stage you will have to pass over money – usually around 10%. One word of advice – if your purchase depends on anything make sure it is in the contract. If you need to sell a house then put it in. If it is dependent upon getting a mortgage – put it in. Why? –if you don’t and the event you hoped wouldn’t happen does – you lose your money.
7. Arrange financing with a bank
You should have already arranged a bank account. Ideally if you build up a relationship with the bank director before you need a mortgage it will stand you in good stead. If you have an account with the bank it may be an idea to put money into the account beforehand – at least the deposit. It all helps to smooth things later. That’s not to say the bank wouldn’t give you a mortgage but they may impose restrictions. (In one case the buyers had to deposit €60,000 euros into a fixed fund for two years because they wanted a 100% mortgage – because the bank director didn’t know them form Adam.)
Also note that most banks charge an opening commission of between 1 and 3%. You can often get this reduced by asking for it to be reduced.
8. Go to the Notary and sign the escritura
The last step in the puzzle (or at least in transferring the house to you) is to go to the Notary. If you don’t speak Spanish then you need to take someone with you who does. If you don’t the Notary will halt proceedings. Your solicitor should do this for you if you have one.
9. Transfer bills into your name
Once the house is in your name then you will need to change the bills over to your name too. You will need a copy of the old bills from the previous owner. Then you call the utility and arrange the transfer. This is also something your solicitor will generally do for you.
So If you choose to go it alone make sure you do your homework – locate your area first then locate your property.
If you have any comments on the subject matter or want any advice then please feel free to contact me. vbtudor@spanishproperty-direct.com and for more articles about buying in Spain look at the website http://www.spanishproperty-direct.co.uk. If you would like a free copy of the e-book - "An Insider’s Secret Guide To Buying A Property In Spain" then drop me an email and I will send you a copy by return.
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