Real estate buyer’s guide
Everything you need to know to make confident decisions and find the home that truly fits your lifestyle.
A step-by-step guide
The foreign buyer’s problem of finding the right property and then negotiating the transaction and closing the sale is much more difficult for him here than in his own country: as in most tourist areas, everyone seems to know about it, from the cab driver to the hotel concierge. Properties are a favorite topic of conversation. And almost everyone has an opinion, which can easily confuse the prospective buyer. Where to start?
Find the “good” property
Some people spend years looking for a property. Others are fortunate enough to find one immediately and have the confidence to close the deal on their first visit to Marbella. For others, it is a matter of time before they feel comfortable with their final decision.
Find the “good” agent
A good agent will really listen to you and interpret your wishes. He will share with you his knowledge of the market and his experience, and once he has exhausted his own portfolio, he will work with other collaborating agencies until he finds the right properties to offer. The basic qualities that a good agent should have are: professional experience, product knowledge, sincerity, good communication, the kind desire to help you in any way possible in your search for a property and, above all, that he will not be too pushy! If you don’t feel comfortable with your agent, don’t hesitate to change him. But when you find one who is easy to work with and understands what you are looking for, stick with him until you find the right property or until you have been offered all the available properties. Through this agency and its partner agencies. If you stay with your agent, you will be even more motivated to break all the locks and find the property that suits you best. This will also avoid having to repeat the same story every time you contact a new sales agent.
A few tips
Commitment still pays dividends.
It will be almost impossible to find exactly what you want, even if you do the construction yourself. And even if you were, you’re not so sure your partner would accept 100%. Find a property that makes you both happy (which usually means a compromise).
Make sure that the protection granted by law also applies to you.
If purchasing a property under construction, the Developer is legally obliged to present an insurance policy or bank guarantee covering his payments in case of incomplete works. Developers must also present proof of their title to the property, as well as planning permissions and licenses; since 2002 they must also present an insurance policy against construction defects. An expert in real estate transactions will be familiar with all these issues.
Purchase for your own use as a priority
Unless you are absolutely certain to be visited by your children or grandchildren, it is generally a mistake to buy a property thinking that they are the ones who will use it. As time goes on, many people end up selling their large homes when their family does not visit as often as expected. Buy for yourself first, according to your tastes and according to your goals.
Compare
The best way to determine the value of a property is to look at the sales prices of comparable real estate properties that have recently sold. To do this, your agent must have a very good knowledge of the market. If you have visited a large number of properties, this will help you acquire this basic knowledge of the market.
Considerations on the day you want to sell.
The property we buy today becomes an important part of our patrimony and one day it will be resold: therefore, it is advisable to take into account not only personal preferences but also general investment criteria, such as location, quality of distribution, quality of finishes and facilities.
Purchase negotiations
Experienced real estate agents are usually better able to deal with the business side of a sale (it’s their job) than lawyers, and will do anything to bring together often conflicting points of view (theirs) and the seller’s to reach an agreement, as any good negotiator would. You can always consult your lawyer during negotiations to make sure the offer meets legal requirements and actively participate in more complex negotiations.
When making an offer, it is important to determine what the seller’s last price is, but at the same time, you must present yourself as a serious buyer. An offer that is too low will not interest the seller and may be counter-indicated.
If you bid too low, your strategy may become a boomerang and an insult to the seller, and in this case you may not even get a response. It is important to know what the property is really worth: on the market and to you. Did the seller turn down other offers and which ones? What is the minimum offer that will pique your interest?
Make your offer in writing if possible. (of course, subject to contract), which includes not only the price, but also the amount of the installments, the date on which you will pay them, the amount at which you wish to complete the transaction, which you consider included in the price (e.g., furniture and fixtures, if any) and, an often overlooked point, the proper functioning of the machinery, equipment and facilities.
Show the color of your money to the seller. He will certainly take your offer much more seriously if it comes with a reservation deposit to lock in the property. Many agents now offer the possibility of credit cards and in this way you can pay a small deposit of 6,000 € to 20,000 € to close a negotiation with the seller, leaving the deposit in the client’s account during the week or weeks. Ten days for the lawyers to prepare the private contract and until the arrival of the 10% transfer.
The added value (Plusvalia) is a local tax calculated on the increase in the value of the land register in which the building is located, between the date of the last purchase and the sale made. The payment of this tax corresponds to the seller who will be obliged to pay it, unless the negotiation has decided otherwise. If you are negotiating the purchase of a plot of land and there is no topographical plan, it may be advisable to negotiate a price per square meter in Euros, to avoid unpleasant surprises.
Costs when buying a property
REGISTRATION FEES (I.T.P.) | 8%, 9% or 10% depending on | To be paid by the buyer of a property (villas, apartments, land, commercial premises, garages) provided that the seller is neither a real estate developer nor a regular dealer in sales. If the “minimum tax value” of the property, as established by the Junta de Andalucía, is higher than the price, then the minimum tax value is applied: 8% is applied to the first bracket below 400.000 € or 30.000 in the case of garages, except those corresponding to the dwelling, with a maximum of two; 9% applies to the range between 400,000 € and 700,000 €, or between 30,000 € and 50,000 € for garages; 10% applies to the quota exceeding the sum of 700,000 € or 50,000 € for garages. |
V.A.T. and other taxes | 10% + 1,5% | For any VILLA, APARTMENT or GARAGE attached to an apartment, when the seller is a developer or a regular dealer of NEW CONSTRUCTION PROPERTIES. |
V.A.T. and other taxes | 21% + 1,5% | In the case of the first sale or resale of plots of land or only in the case of the first sale of commercial premises, when the seller is a developer or habitual trader of this type of property. |
V.A.T. and TAXES or REGISTRATION DUTIES (I.T.P.) | 21% + 2% 8%, 9% or 10% according to | In the case of resale of any villa, apartment or commercial space, when the seller is a developer or regular trader of this type of property, and the buyer is a company that will use the property for its activities, they can choose between paying VAT (which can be deducted as a normal commercial activity) plus 2% stamp duty, or paying the registration fee. |
NOTARY FEES AND REGISTRATION FEES | Approximately 3.000€. | The cost increases according to the number of pages or the complexity of the notarial act of purchase and the value of the property. |
MUNICIPAL CAPITAL GAIN | The value of the capital gain may only represent a few hundred euros, as opposed to thousands of euros in the case of a property that has not changed hands for many years. It is a tax that, by nature, falls on the seller who is responsible for payment, unless otherwise negotiated. | |
ATTORNEY’S FEES | Approximately 1%. | Attorney’s fees are in the range of 1% of the sales price, depending on the attorney and the price of the property. |
Summary
The total official costs of a purchase transaction for a residential property represent approximately 10-11% for resale properties, or approximately 12% if VAT is paid on the purchase price (new construction) plus legal fees.
When an offer is accepted, it is always necessary for a lawyer to verify the situation at the Land Registry (which has the final say on the property and where all existing charges will appear). The lawyer will also prepare the private contract that will bind the two parties to the transaction and possibly the notarial acts for signature before a Notary, once the balance of the price has been paid and the free possession of the property has been transmitted without charges, concluding. So the sale. There are excellent lawyers in Marbella and many speak fluent English and other languages. The best way to find one is by personal recommendation or by your agent.
It is clear that much of the above comments are mainly for buyers of resale properties, as most new developments have fixed prices or often have very little room for negotiation, at least with respect to price. However, some extras or modifications can be negotiated, to be included in the purchase price, which depends entirely on the developer’s sales policy.
So finding and buying a property in Spain can be as simple or as complicated as you want it to be.
One last piece of advice: follow your intuition! It is often the best guide.
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