The purchase of real estate in Spain is a complex process for a Foreigner. Purchasers often misunderstand or underestimate certain elements. So, when you are buying a home in Spain, what are the main mistakes to avoid?
8 potential mistakes, how to avoid them and their solutions
1. First mistake: wanting to fend for yourself
Spain is in the European Union but the process of acquiring property is different from other EU countries and other countries in the world. Wanting to do everything alone will generate more costs, more time and more worries and potentially more mistakes.
The solution: to call on a professional, the Personal Real Estate Advisor who will take care of all the steps of acquisition from the search for the property until the signing of the sale and even the maintenance of your property. It will also help you avoid the following mistakes!
2. Second mistake: do not make your best offer
Trying to get too much of a discount in a competitive market be a big mistake. You risk losing the villa or apartment of your dreams for not having made a strong enough bid!
The solution: negotiate 5% below asking price, in some cases if the housing is too expensive compared to the market price otherwise accept the asking price. A well-priced property will always sell quickly. Having the help of a professional will ensure you are not overpaying for the property.
3. Third mistake: Wait too long to make an offer
The impulse of buying a home is risky, but so is the opposite, to wait too long before deciding, especially, we repeat, in the current competitive Spanish market.
The solution: once you have determine the location you want, the type of housing you want, and your price range, and have found a property that fits your needs, make your offer immediately. Waiting can be costly in time and money.
4. Fourth mistake: do not have a pre-approved bank loan agreement for the mortgage
Often buyers “put the cart before the horse” and go to see their bank after selecting their home to buy. The banker may not be able to approve you on the spot, or may delay you by requesting a time limit to review your file or request other supporting documents.
The solution: before any research, obtain the prior agreement of a bank that will accept a mortgage loan for an acquisition in Spain. You will have an additional advantage with the seller who will take your proposal even more seriously. Being pre-qualified for the property also ensures you are looking at property in your price range. Spanish banks or mortgage brokers can offer competitive rates.
5. Fifth mistake: not prepared for a bidding war
The Spanish real estate market is currently experiencing a bidding war, especially in Barcelona and Madrid. Being prepared will help you get the house you have chosen!
The solution: set your maximum budget to make room for a possible overbid. Your proposal must be 5 to 10% below this budget, which means that you must look for assets 5 to 10% below this maximum budget. Avoiding a bidding war by either making a strong offer or look at alternative property options.
6. Sixth mistake: criticize or denigrate the home in front of the seller
Spanish people are proud and sentimental, so criticizing their home or asking for a big discount by pointing out certain faults will certainly not make it easier for you to buy their property.
The solution: be smiling and polite with the Spanish seller, and you will see that you can get a lot more than you think!
7. Seventh mistake: wanting to ask everyone’s opinion
Before buying, you want to ask the opinion of your children, your parents, your brothers and sisters, and why not your friends! Remember that it takes time and that opinions vary widely from one person to another.
The solution: you will live in this property; it’s up to you to decide. It’s almost impossible to find a property that ticks all your boxes. If you find one that ticks most, move on it before it’s gone!
8. Eighth mistake: you did not learn from your mistakes
Before finding your home, you will certainly suffer refusals mainly for the reasons stated above. You will likely blame the seller, the agency, your banker, etc.
The solution: learn the failures of these transactions and do not repeat the same mistakes!
We wish you good house hunting!
Buy in Spain at the best price, in peace and in complete safety. Call a Real Estate Advisor for assistance in your search.
Here are some other key articles that will help you though the process of buying a home in Spain.
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