5 Steps to Your Property in Spain: How to Buy Real Estate on the Costa Blanca
When buying overseas property, it is always advisable to take at least a few trips to the location. Photographs do not give enough information when spending large amounts of money, so it is best to deal directly with a real estate agent in the country itself. When looking for property in Spain, one should narrow their choices down to a particular area and then find a local agent to assist them in finding the ideal purchase. Many real estate agents in Spain can speak English, so there is no need to be bilingual. It is best to inform the agent what kind of property one is looking for and what kind of price one is able to spend. Although the agent makes a commission off of the sale and will want the highest price possible, they can shorten the list of properties to include only the ones the buyer can afford. Then, the Spanish agent will be able to personally take the buyer to the locations.
2. Find a Desirable Location�¯�¿�½
There are many things to consider when being shown various properties. If this is purely an investment venture and isn’t going to be the buyer’s place of residency, the decision will be more practical and emotionless. The investment in Spanish property is currently a profitable and stable one. So, if a good deal is found and it is plausible to find willing tenants for the location, then the choice should be easy. However, buyers that may want to stay in this particular location, either permanently or for vacations, will want to consider more. For example, is the location attractive and conveniently located? Are there nearby facilities, such as a hospital, restaurants, or shopping districts? New residents may also want to inquire about local schools, just as they would when buying a residency in their home country.
3. Prepare Money for the Purchase�¯�¿�½
There are two common ways of readying money for a real estate venture in Spain. One way, often reserved for the wealthiest buyers, is to merely pay for the property in cash. This may be an easy approach for some, but it can also interfere with the equity built by the purchase. Often, the best way to buy real estate in Spain is by obtaining a mortgage loan from a local Spanish bank. Luckily, the real estate industry is booming right now in Spain, so banks are fiercely competing with each other. A buyer should use this to their advantage by comparing interest rates and bringing competitors? offers to rival banks. Often, banks will attempt to match or beat their competitors? offers. Proper identification and proof of financial history must be shown to a bank when financing a purchase. One should be sure to bring their relevant documentation when traveling to Spain for the mortgage loan.
4. Pay for Closing Costs
Whether one pays for property with cash or finances it through a mortgage loan, closing costs are due up front and must be ready when signing the dotted line. A deposit is made to the seller and is often 5% to 10% of the purchase price. It is wise to allow a trusted third party, the real estate agent, to hold onto the deposit until the sales agreement is signed. Optionally, a deposit agreement can be drafted in order to protect the buyer’s investment. Although it isn’t absolutely necessary, some buyers feel that this is the stage in which a lawyer should assist them. Other closing costs can include payment to the real estate agency, although that may be escrowed into the mortgage.
5. Sign the Sales Agreement�¯�¿�½
The sales agreement, or opciÃ?³n de compra, is signed on closing day. Closing day will be a day that both the seller and buyer agree on. It is the buyer’s duty to make sure all of the mortgage lender’s affairs have been taken care of on the seller’s end. Then, it is only a matter of signing the final paperwork in front of a notary public. Those who are inexperienced with real estate and/or the Spanish culture may again opt to have a lawyer present. When choosing a lawyer to look over the final paperwork, the buyer should be sure to hire one that isn’t associated with the seller. That way, the buyer can be sure that the lawyer is completely unbiased. After the closing costs are paid and the sales agreement is finalized, the real estate transaction is finished.
