Tips for buyers

As your personal property shopper, we not only support you in buying or selling a property, but can also help you further and offer you numerous advantages, such as the following:

Market knowledge:

As experts, we know the local market and always know what needs to be done to speed up the purchasing process.

MLS (Multiple Listing Services):

We have access to a property listing system. This system allows us to communicate between professionals, which makes it easier for property listings to be in the hands of several vetted co-operation partners rather than just one agent. Except for off-market properties.

More security and more time for customer service:

Initial contact with the seller to clarify the circumstances and general conditions before we forward it to them. This leads to more security for you and your family.

Legal issues:

The knowledge we have at our disposal helps to avoid basic problems that can occur when buying a property.

Negotiation:

We can negotiate the purchase of your property to your advantage.

Speculators and fraudsters:

You have a sign with the inscription "Sale by owner" discovered. As a result, you have decided to look for and buy your property yourself. The result will be that in a few days, you will be inundated with unbelievable stories from people who will try to take advantage of your inexperience with a lot of pressure and persistence. As professionals, we are trained to deal with this type of approach.

Steps in the property purchase process.

Step 1 - The offer

If you have already selected the property you wish to purchase, it is necessary to complete a Letter of intent to purchase (LOI) to hand in.

This is the legal mechanism used to make the seller aware that you are interested in buying the property and at what price you want to buy it.

We are the ones assisting you in the preparation of this document. This offer must include all the conditions for the purchase (mortgage, timing, etc.), if applicable. If the purchase is made in cash, it must be made with funds from a bank account of the Spanish State.

Step 2 - Acceptance of the offer (LOI)

If the offer is accepted by the seller, the preparation of all relevant documents for the transfer of ownership begins.

This is done by the estate agency or us. To do this, the buyer must make a reservation for the property they wish to purchase by paying a percentage of 10 % of the purchase price on account. This amount is transferred to the owner.

Step 3 - The purchase contract

As soon as we are clear about the financing and all the documents are in order, an appointment will be made for the signing of the public deed of sale, which will take place as a notary is signed.

At the time of signing, the balance of the agreed purchase price of the property is paid, and the property is handed over to the new owner.

A mortgage loan or cash payment?

The payment method for the purchase of a property depends on the amount of money to be invested and your mortgage debt capacity.

Your budget will help you choose the area, the type of property and the main features.

There are two main payment methods:

Through a loan granted by a financial institution, mortgage loans.
Through a Cash payment.

If you have the option of buying with cash, you know what budget you have access to.

But even if you have the necessary money, it's always a good idea to think about financing for two reasons:

The interest rates are so low that you are not interested in a Decapitalisation are interested in.
you can consider buying a more valuable property.

You must have equity capital totalling 20% of the purchase price plus the ancillary purchase costs.

For people who do not live on Spanish territory, financing can be obtained, but this may not exceed 50% of the value of the property.

Once you have decided which payment method you would like to use (Cash or mortgage loan), we can discuss the budget.

In this way, you can determine the areas and types of property to which you may have access.

Applying for a mortgage loan, but how?

A mortgage loan or mortgage involves raising money for the purchase, refinancing or modernisation of a home.

Before you apply for a mortgage loan, you must consider the following recommendations:

Find out about the current interest rates at various banks.
In Spain, the reference interest rate of the Euribor, and it is important that you know that the French method is used. Ergo, the less time you choose to repay the mortgage, the less interest you pay.
You often have to take out life insurance, household contents insurance, etc.
Find out whether the interest rate is fixed or variable.
Most banks require an initial contribution of 20 % of the property price. However, there are banks that will grant you 80 % of the estimated value, which in some cases is higher than the sale price.
Find out what interest you will be charged if you pay the loan in advance or partially in advance.

This last option gives you the choice between reducing the amount of the letter or shortening the financing period.

What costs are incurred when buying a house?

There are several costs associated with buying a property. When deciding to buy, it is important that you know and take into account at least the four types of costs:

Value of the house: This is the price you are prepared to pay the seller.
Since mid-2019, mortgage costs in Spain must be paid by the company that grants you the loan. Therefore, only the costs for the appraisal and, depending on the bank, the opening and study commission are incurred, although many banks no longer charge this.
Taxes on the purchase of property differ depending on the type of property. New properties, i.e. first-time buyers, are taxed in the same way throughout the territory. They are subject to the national Value added tax. On the other hand, property transfer tax is paid on second-hand properties. This tax is called ITP and the percentage depends on the autonomous community in which you want to buy. You should also think about premiums for the first property, VPO, large family, etc.
The fees for property consultants vary depending on the region and the service provided.

All of these costs must be paid before or at the time of signing the purchase contract. As there are several costs associated with buying a home, it is important that you speak to us so that we can advise on any issues relating to costs and borrowing capacity.

New, used or project property?

You will find the following property purchase options:

Second-hand properties are properties that have already been transferred, were or are already occupied, and the current owner wishes to sell. The prices of these properties are determined on the basis of the market.
We have access to the listing of these properties, sorted by price, characteristics and area
New build properties or properties that are less than 6 months after completion of construction. These are generally properties that have not yet been transferred or that have been transferred but never occupied. The prices of these properties are generally non-negotiable. The price usually varies depending on the surrounding market.
For properties in the project planning or construction phase, the sale begins on paper.

Generally speaking, the longer it takes to build these properties, the more favourable the purchase price.

If you can wait and are not in a hurry, you can find good investment opportunities.

Ask us about these new-build projects.

How do you know where to buy?

We support you every step of the way and in selecting the region.

The first point to consider is why you want the property:

For living, renting or as an investment?

If you are looking for an investment property that will pay off for you as an investment, we recommend that you be flexible in your choice of location. Your main motivation should be to protect and grow your assets. Choose your target group to whom you want to let the property: Students, young families, established families, singles, etc.

Then select areas where this type of market is located. It is important to consider the statistics on property price changes in the area to know if you could make a profit if you decide to sell in the future.

A main home or holiday home is the goal, and the most important thing in this decision is the safety and comfort of your family. Therefore, you need to consider the following variables before choosing where to buy:

Schools and education sectors if you have children under the age of 21!
Distance from your work or home office?
Will you have pets?
The property's surroundings?
How much space do I need?
Would I be interested in a refurbishment property?
How important is the increase in the value of a property to me?