HOW WE HELP WHEN BUYING YOUR SPANISH PROPERTY WITH US
Finding your Dream Home in Southern Spain with Dream Homes Spain is easy. When looking for an apartment, townhouse, villa, finca or plot of land on the coast or inland, we are here to help. It is our policy to meet the needs of our clients at all times, not only during your purchase but also offer further support as part of our after-sales service. When buying a home with Dream Homes Spain, here is an overview of what we do for you:
• Inform you about the current market conditions
• Discuss your wants and needs against your budget
• Guide you to homes that fit your criteria
• Help you to open a Spanish bank account and apply for an NIE (certificate of non-residency)
• Coordinate the work of other professionals you’ll need during the buying process
• Negotiate the sales price with the seller on your behalf
• Make sure all the legal and required paperwork is fully completed and up-to-date
• Meet at the Notary, together with your Solicitor to sign the Escritura (Title Deed) of your new home
UNDERSTANDING THE BUYING PROCESS
CHOOSING A PROPERTY
Once you have decided on the property you wish to buy, there are a few steps for you to know, which will help you go through the purchase process.
HAVE YOU ARRANGED YOUR FINANCE?
You don’t need to wait until you’ve found a property before you arrange finance. It is a good idea to find out first how much you can borrow, that way you know what price bracket to start looking for a property.
The problem that most people face today, however, is “which home loan is the right one for me?” There are so many options when it comes to banks, products, rates, terms and fees. With the purchase of such a large investment, you need to be confident that you have made the right financial choice.
INSPECTION OF PROPERTIES
Your Property Agent will show you those properties that best fit your requirements. This will be at times to suit you and the owner of the property. You will be kept informed of all changes relating to the properties you have viewed and you will be advised of new properties as they come on the market.
Inspections of properties take time. We recommend you do not rush or disregard too quickly. Try not to judge a property from the outside only. Some properties have little or no street appeal but have much to offer inside. An inspection will confirm your first impression or will pleasantly surprise you.
When the right property presents itself, be prepared to make an offer. We will encourage you to do so as many people have found their perfect home and missed it because they didn’t take the opportunity when it as available to them.
USING A PROFESSIONAL ESTATE AGENT
As a Professional Property Agent, we try to be as helpful as we possibly can. We provide a wide selection of properties and local information. Agents do not normally make a charge to buyers and therefore it makes sense for a buyer to use the helpful and knowledgeable services of an experienced agent. Agent’s fees are usually paid by the seller as an agreed percentage of the purchase price.
MAKING AN OFFER ON A PROPERTY
When you have decided on the property, the first step is to make a verbal offer through your agent. Negotiations will then proceed until a price is agreed when you should appoint a lawyer to formalize the agreement.
The dangers of offering too low:
Once people find the property they wish to purchase, many buyers are tempted to start too low with their offer. What could happen in this case:
-The seller could feel insulted, and become difficult to negotiate with from then on
-The seller may think you are a bargain hunter, without serious intention to buy and dismiss your offer altogether.
If you are serious about purchasing a property, it is wise to make a genuine offer that reflects your serious intentions and appreciation of the true value of the seller’s home.
APPOINT AN INDEPENDENT LAWYER
The lawyer, who should be fluent in Spanish and your own language will carry out the necessary checks on the property and complete the legal requirements of the sale.
Andalucia Homes does not work with any particular lawyer, but we are working with many competent professionals in the area and we are happy to recommend one, depending on your language preference.
THE HOLDING DEPOSIT
After the price is agreed and the “Nota Simple” has been checked, you will have to pay a holding deposit of 3.000 to 10.000 € to take the property off the market and reserve it until you will reach completion. Your lawyer will prepare a formal agreement contract for this purpose.
EXCHANGE OF PRIVATE CONTRACTS
The exchange of private contract or the signing of an option to buy would normally take place about two weeks after the formal acceptance of an offer, and when the lawyer would have completed his searches. The contract would set out all the agreed terms and set a date for completion. It is usual for the buyer to pay a 10% deposit at this stage.
COMPLETION AT THE NOTARY
On the assigned day, buyer and seller (or their authorized representatives) will attend the office of the notary to sign the “Escritura de Compraventa” (the title deed), which should state that the property is sold free of charges, mortgages and tenants. The notary does not check the terms but solely certifies that the parties have agreed with them. At this point, the balance of the payment is made and possession passes to the buyer. Your lawyer will arrange payment of taxes and fees, and register your title deed at the property registry.
PROPERTY PURCHASE COSTS
There are three fees to be paid: Lawyers fee, Notary fees and property registry fees. Also there are two taxes to be paid: Transfer tax (ITP) and Plus Valia tax.
Overview of payments:
- Lawyers Fees: usually about 1% of the purchase price plus 21% IVA
- Notary Fees: normally in the range of 300 Euros – 900 Euros (depending on purchasing price)
- Registry Fees: approximately 40% of the notary fees
- Transfer tax (ITP): When purchasing a resale property from a private seller, the ITP tax is as follow: 0 – 400.000 € (8%), 400.000 – 700.000 € (9%) and above 700.000 € (10%). When buying a new property from a developer, this is replaced by 10% IVA tax.
- Plus Valia: This is a local municipal tax and is based on the officially assessed increase in the value of the land since the last time the property changed hands
WHO PAYS WHAT?
It is normal practice for the buyer to pay the above fees and taxes with the exception of the “Plus Valia”, which normally will be paid by the seller. The seller will also pay his own capital gains tax and also the estate agents fee.
What Our Clients Say …
Highly Recommended Agent
Gerlinde Holmer, Buyer, Germany
Tom Tomy
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Buyer, London / UK
Very helpful and friendly
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Nicola Brenda, Buyer / Belgium
HOW WE HELP WHEN BUYING A PROPERTY WITH US?
When buying a home with Dream Homes Demo Real Estate, here is an overview of how we help:
• Inform you about the current market conditions
• Discuss your wants and needs against your budget
• Guide you to homes that fit your criteria
• Help you to open a Spanish bank account and apply for an NIE (certificate of non-residency)
• Coordinate the work of other professionals you’ll need during the buying process
• Negotiate the sales price with the seller on your behalf
• Make sure all the legal and required paperwork is fully completed and up-to-date
• Meet at the Notary, together with your Solicitor to sign the Escritura (Title Deed) of your purchased property
LET US FIND YOUR DREAM HOME IN SPAIN
Save yourself some time by first identifying exactly what you need and want in a home. You know what you can afford, so it’s time to start finding your dream home. If you already have navigated our website and have not found the property you are looking for, we will do our best to find it.
We’ll save you time and stress by only showing you homes that meet your needs, your preferences, and your budget. Please fill in the form below and we will email you as soon we have found your dream property.