|Real Estate Information|
Buying Property in Spain - How to Avoid Paying over the Odds
Spain has a lot to offer Northern Europeans and until recently there was a marked difference between the price in their home country and a similar Spanish property. However many buyers have found to their cost that they paid way over the odds.
Why is this and how can you avoid falling into the same trap?
Being in a different country you are unsure of the process, don't have time to compare prices, so many agents take advantage of you - in fact sellers will even increase their price if they know it is a foreigner buying.
One of the biggest differences between the Spanish and the UK market is that Spanish sellers set their own prices and agents add their commissions to this. In the UK you get a valuation which includes the agents commission.
One problem with this is that buyers set their prices too high. This happens for a number of reasons.
1. They have more negotiating room
The second problem is that agents will add anything from 3% upto 25%+ if they think they can get away with it - and often do.
Most agents are reliable and honest, but a handful have given the business a bad name - and typically it is Foreign agents that rip off their own countrymen. A lot of this is down to there being no regulation of the Spanish Property Market, agents create contracts between themselves and the buyer and themselves and the seller - ensuring that the buyer never finds out how much has been charged.
It is especially true for agents who use persuasive subsidised trips (wine dine and sign on the line) that give the buyer little or no time to make comparisons with other property. But saying a property isn't worth the money is not the same as it won't sell - because they do - by preying on buyers that don't know the difference between a cheap property and a good value property.
The result is that buyers find they have bought a property and cannot sell it - even at break even - for at least 2-3 years because they have been caught out.
So how do you ensure you don't pay over the odds for your property in Spain?
1. Research the area. This is easy with the internet where many properties in the same area can be compared (and in fact the same property on with different agents)
2. Note important features and compare each property against features (i.e. number of bedrooms, property type etc). Although there is no proven formula you will at least have a better idea as to whether a property is worth the asking price.
3. Use a good agent. Most agents (regardless of what they tell you) act on behalf of the seller. If you can - find a buyers agent. But if not research which agents in your area are reliable, honest and don't overcharge. This can be done by asking around and asking the agent how they operate. A good agent will try and achieve a fair price for both seller and buyer and will be happy to disclose their commission
4. BEWARE of agents who charge both seller and buyer. Regardless of what they tell you THIS IS NOT acceptable nor common practice. They do it because they know they can get away with it and it means they get double their stated commissions. But the price you see is not the price you then pay.
5. Don't be afraid to negotiate. British buyers say very little about the price and will accept the price given. They are often told there is no room for negotiation - but there very much is. Remember if you walk away they have no sale - and likely have no body behind you either
Unless you push for a discount you wont get it - So negotiate hard - or get someone to do so on your behalf. Offer too low and you will get to where the seller wants to be - offer too high and you leave money on the table.
So in short if you wish to avoid paying over the odds for your dream Spanish home keep your eyes open, ask lots of questions - and don't accept anything you are being told without checking it out first, and remember that everyone is out for themselves - you wont go far wrong.
Vince Barnes is the owner of http://www.SpanishProperty-Direct.com - a website aimed at informing buyers about the process of buying in Spain and keeping up to date with news and regulations affecting the Spanish Property Market
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
Cant Rent a Work Zone
So you've picked up your first (or third, or tenth) income property, and it's a real fixer-upper. You've got a great team of contractors, and you know what they need to do and how much time and money it's going to cost to make it happen.
Getting Raw Land, Not a Raw Deal!
There is more to buying raw land than meets the eye and more than a few individuals have wished they'd had a second chance upon finding themselves duped, conned, misled, ill-advised, uninformed, oversold, undereducated and often unprepared. They realize, often too late, that a raw land purchase should be properly investigated, evaluated and negotiated using a logical and rational plan.
Much Ado About Mansionization?
Is there a perpetual shadow hovering over your house? Do you feel as though you live in a Batman movie? You may be the victim of a neighboring McMansion or a new development trend called mansionization, the housing industry's equivalent to bigger portions and fast food.These mansionizers-who are frequently "spec" builders--buy small or dilapidated homes, raze them and erect massive structures, often resembling sterile apartment buildings.
Homes in Chapel Hill
Chapel Hill is located right in the middle of North Carolina, halfway between the Blue Ridge Mountains and the Atlantic Ocean. In 2000, the nearly 20 square mile city had a population of 48,715 people and it has substantially increased over the last five years.
When is the Best Time to Move?
As Realtors, we are often asked, "When is the best season to move?" This is a tough question, one we cannot answer for you. Most people are asking about price, do they fluctuate throughout the year? NO.
Unravelling The Real Estate Buying Process in Canada
If you're a foreign national thinking about investing in the real estate market in Canada here's a run down of the typical buying process you should expect to encounter together with a general explanation of mortgages available to assist with the purchase.First things first though, you have to find your ideal property of course!But let's assume you've done that with the help of a good estate agent and you're ready to move forward with an offer.
Four Reasons To Offer Seller Financing
An example of seller financing: Years ago I bought a rental property, and nine months later sold it for 15% more, without fixing or improving a thing. The easy terms are what sold it.
Property Investment - Buying A Holiday Home in Cyprus
Cyprus is fast becoming a property hotspot for thousands of British holiday home hunters disillusioned with the overdeveloped and overpriced Costas. Famous for its spectacular beaches, a climate that gives more sunshine days than Spain and its rich and varied history, Cyprus offers a perfect mix of foreign and familiar.
Top Tips for Buying and Selling a Home
BuyersLooking for a home-Use Internet for overview of properties, communities, and schools.-Visit potential neighborhoods at different times of day.
Why Property Investors can Crash and Burn
Many experts say you can't lose if you put your money into Property. Not true.
How to Own a Dream Home in Spain
Every year hundreds of thousands of foreign visitors travel to Spain to delight in the fantastic weather, stunning natural landscapes, excellent entertainment options and superb Mediterranean beaches. Many of these people dream of one day owning their own property in Spain, in fact Spain is now one of the most desirable second home and retirement destinations in the world.
Buying a Home: The 5 Biggest Mistakes that a Home Buyer Makes
As a Professional Real Estate Inspector I get to see and hear the right and wrong things people do when buying a home. These 5 tips will help you choose the right Real Estate Agent the first time.
Maintaining Small Town Charm In An Ever-Changing World
Virtually any state in the country has the appeal of multiple small towns. Ask almost anyone who lives in small town why they are here and they'll tell you they enjoy the small town feeling while being close to all the conveniences of a larger city.
How to Price Your Property?
A house properly priced is half sold. But there are plenty of ways to price it improperly.
Five Things to Help Sell Your Home Fast, and For More Money
Selling your home requires some thought and a clear plan of action. Here are five things to consider when you're getting ready to sell your home:1) Know Your BuyersAre most of the homes in your neighborhood being bought by first-time or move-up buyers? Depending on which group will be looking at your home, you'll want to do the things that will make your home appealing to those buyers.
Estate planning can enable you to control your property while you are alive, take care of you and your loved ones if you become disabled, and give what you have to whom you want, the way you want, and when you want, and if you wish, you can save every last tax dollar, professional fee, and court cost possible.Estate planners frequently begin the estate planning process by analyzing clients' personal and financial dreams, aspirations, fears and objectives.
Negotiating and Sales Skills Are Critical
When I first started getting active in creative real estate, my skill set at negotiating was very weak. I had done the telemarketing thing for American Express as a financial planner and had studied and learned a few techniques.
Various Aspects Of The Lease Purchase Business
In a previous article, we wrote why we believe that Lease Purchasing is the perfect home-based business, here we want to briefly touch on some of the actual aspects of operating such a business, the pluses and minuses and why Lease Purchasing represents a win-win situation for the seller, the tenant/buyer and just as importantly, you, as the business owner. One of your goals in operating a Lease Purchase business is to contract for property that you then move to the tenant/buyer.
Invest In Real Estate - But Where?
Where should you invest in real estate? If you know an area well, and have enough experience investing in real estate, you can make money almost anywhere. However, there are always places that are better or worse for real estate investments - places that have a better demand/supply ratio.
Mortgage Broker Training: How to Secure Loyalty From Realtors
So you've just returned to your office after delivering an Oscar worthy presentation to a real estate agent. They're impressed and ready to do business with you.
|home | site map|
|© 2006 TIGER MEDIA|