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Tips from the Experts on Buying Property in Spain
from:This is a difficult subject to cover as everyone has different motivations and aspirations. But generally, whether you are buying a home to live in, an investment to generate income and capital growth, or you just want to find a nice holiday home for yourself and family; you need to understand fully what your criteria is.
For all of these types of buyers certain factors are key; Money - The big one, find your budget and stick to it whether it is the total price or a monthly budget for a mortgage, do not overspend and always allow extra money for your taxes (approx 10%), mortgage set up costs, furniture and other incidentals. Also, buy the best property you can afford - build quality, location, amenities. It is foolish to cut corners here - you will only regret it later when you cannot rent out your property, you are living next door to a nightclub or you are stranded half an hour from a supermarket or restaurant and all for being seduced by a "bargain". Sort out your finances before you start looking or speak with your agent, broker or bank for advice. You may have more money available or possibilities than you first think or, worse you may over commit because you didn't realise an added expense - take advice early. Most people nowadays either take a Spanish mortgage or pay in cash after releasing cash from their home in the UK; both are very straight forward but make sure you understand everything.
So, now you have your budget. What other "fixed" criteria are there? You might need 3 bedrooms or to have a swimming pool or be near the beach. These are no compromise issues (if you have the budget!). You need to be very clear in your mind what is a must and what is merely a preference. By sticking to these points, you will very quickly whittle a list of possibly hundreds of properties down to a more realistic selection.
Next is what will you compromise on? Are you prepared to look at older properties? , would you consider off plan? Do you really need a garage? These things, while highly desirable, are things that you may be prepared to compromise on. It is highly unlikely that you will find the perfect property but with luck, you will find the one that is perfect for you.
At this stage it is very easy to confuse yourself and waste a lot of time by trying to see everything that is on the market, this only alienates vendors that needlessly get their hopes up, and very rarely is there any tangible benefit. It is far better to be strict about what you want, talk to the agent and make it clear what it is that you need - he should be listening and learning so as not to waste your time. Then you should really study the property details and listen to your agent. If he is good, he will know his products and will be able to match them to your requirements. Beware though, some bad agents do just try and throw mud and will encourage you to see any old tosh so that the good one looks stunning by comparison. Probably about 4 or 5 properties to view is enough initially. These need to be viewed and judged - feedback is massively important as this will help your agent hone in on the right property. Even if you hate the first apartment you see - you might be able to say that you liked the bedroom sizes, or the bathroom was too small, or that you wanted a separate kitchen. All of this information is very positive and your agent can then save everybody time by mentally reprocessing the ones in his selection. After a short time, hopefully, your agent will have a final selection of 2 or 3 properties that should "tick all the boxes." If you like one of these properties, we now come to a very important part of the process, which is making the offer. Firstly though - only make an offer if you are genuinely intending to buy the property. It is a stressful time for the vendor and they could well be under all kinds of pressure. It is not fair to make random offers just to test the water and then back away - as it can lead to a lot of work and heartache.
When you make an offer - it is not only about the asking price, you will be asked and need to have thought about the other details such as will you be taking a mortgage? Can you pay cash? Can you exchange or complete fast? Do you have a deposit to put down? Is your reservation money refundable? These are all important questions that could make the difference in an offer being accepted or not. Everything at this stage is negotiable but when agreed it will be put in writing and become binding. Be very clear about your situation as it will save disagreements later. Again your agent should be an expert at this and will have come across many situations before and hopefully see new ones coming. Despite claims in the media about it being a buyers market, it doesn't follow that all vendors will cave in on price - some will need a certain amount of money for other commitments, some are confident in their property, some don't really need or want to sell. By all means make an offer but do not expect a huge price drop automatically. On the other hand, there are some vendors who are "motivated sellers" and will consider a low offer - but probably on the basis of a fast, safe sale.
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