43 home buying tips.

If you’re buying a home in Spain, there’s never been a better time! Today’s market is all about you, meaning more negotiating power and options than ever. To be best informed and in order to prepare to make a purchase, this list of tips is definitely a must-read.

1. Ask whether you can possibly rent before you buy?
2. Don’t plan to buy unless you plan to stay. Home ownership makes most sense when it can be for at least a few years..
3. Consider the commitment involved in such a large purchase.
4. Consider the responsibilities involved in owning a home, from maintenance to upkeep.
5. Know where you want to move.
6. Drive around area that may interest you, if possible.
7. Talk to other people in the area.
8. Be creative in your research.
9. Consider, school locations, conveniences, proximity to amenities, etc.
10. Know what kind of home you’re looking for.
11. Consider benefits and drawbacks of new villas.
12. Consider benefits and drawbacks of old cortijo's.
13. Decide if a view is important to you.
14. Ask yourself: Do I want a lot of land, or will that be too much to keep up with?
15. Prepare a preliminary list of must-haves.
16. Know what you can afford.
17. Save up a deposit.
18. Stay aware of news and trends affecting mortgage rates.

19. Search for a home on-line at spanishsalesdirect.com
20. Keep your eyes open: driving through areas, asking friends, etc.
21. Remember that the #1 resource for home-searching is the Internet.
22. Use your must-have list to establish search criteria for a home.
23. Read through property descriptions.

24. Visit homes.
25. Call sellers directly to schedule private viewings.
26. Bring questions to the viewing.
27. Be polite and considerate when touring the home.
28. Think about long-term appeal: will you still like this home in 5 years? 10?
29. Be alert to motivated sellers.
30. Pay special attention to homes that have been on the market for months, sellers are often more motivated by this point.
31. Don’t overlook overpriced homes.
32. Determine which home is right for you.
33. Do research to know if the asking price is fair.
34. Take the current market into account.
35. Be as neutral as possible; don’t get too attached to the home.
36. Back up your offer with your research/data.
37. Consider ways to sweeten the deal.
38. Be willing to negotiate.
39. Build rapport with sellers.
40. Counteroffer.
41. Make concessions.
42. Get the house appraised, if required by your lender.
43. Shop for home insurance.

Professionals whose services you may need.

This is a list of the professional services that may come into play during your private purchase:

Estate Agent

Hmmm, well actually do not be put off of using a GOOD agent, their skills can still be invaluable, even when buying privately.

They can make you aware of details & nuances of the area, and the asking prices of homes on the market within your ‘target range’. Use their service to make sure you are getting the best deal that you possibly can privately.

BUT, be very aware that if they introduce you to a seller or a property, then their commission will become payable and the purchase price will be much higher as a consequence.

Solicitor (Abogado)

These are the ‘legal eagles’…..the ones that you need in order to deal with the red tape and help you to ‘jump through the hoops’ that you will need to.

#1. You must, if possible use a solicitor with good English. It is not enough for a secretary to be bilingual, the company will not be held liable if they misinterpret messages or legal documents. The lawyer must converse with you directly, in your own language, to minimise the risk of any misunderstanding - which could end up being expensive.

#2. It is advisable to use a legal firm that has more than one practicing lawyer on hand to deal with your purchase. The property boom here in Spain has led many lawyers previously employed by firms to set up on their own. At the moment they are all so busy that it can be days before your emails or calls are answered.

Accountant (Gestor)

In Spain, you are best advised to use a Gestoria. The same applies for these people as for lawyers.

Gestorias settle accounts, deal with residency, car taxes and imports, re-registration of number plates from UK to Spanish, and all sorts of other things you will need when you own property here in Spain.

Surveyor

Again, the rules around buying a property here are very different than in the UK. A Surveyor is not automatically involved in a purchase. If you are buying an old property, we strongly advise using the services of a local Surveyor who can explain any possible issues with the structure of the property to you, so there are no nasty surprises to upset you’re budgeting and wreck your project through ill-conceived planning at the outset.

Architect

If you are hoping to buy some land privately, with a view to building on it, then these professionals come in to their own.

Depending on where and what you are building, you may want an Architect to visit the land you are buying to advise on land slippage, depth to rock and issues regarding insurance against problems with both. The type, size and style of house allowed in your zone may need to be considered. But most importantly, you must view his work before signing up to anything, since once he has started on the plans, it will be too late for you to pull out without losing substantial amounts of money.

Do not waste 10, 20 or even 30 thousand Euros on Estate agents commissions.

All of the above can be arranged very easily by you with just a few E-mails, telephone calls and meetings.

And do not forget that the Spanish people gave been buying and selling privately for a very long time. And so all of the above are very well versed in the mechanics of the process.

A private buyers step-by-step guide.

If you need to know why you should be buying privately read this.

Where to start?

The first thing to do is establish what you can afford. Add up savings and what you can afford to borrow, you will soon find out what budget you have to work to.

How much to borrow?

lenders will vary the amount that they will allow you to borrow depending on your circumstances.

Independent mortgage advisers can be used to assist you, but often charge an administration fee.

A good adviser will not only find you the right mortgage though, but can also provide tips on where to find a solicitor and guide you through the buying process.

A lender will need to carry out a valuation to ensure what they are lending you is reasonable.

Find a mortgage

A good, independent mortgage adviser has access to the whole mortgage market, and will help ensure the mortgage fits your needs.

Fixed Rate	The advantage of this is that it will not change during the specified term. Many people like the security of a fixed rate as they can manage their budget knowing their outgoing will remain constant. However, if interest rates fall, you might find yourself with an expensive mortgage.
Variable Rate	This rate moves according to changes in the European base rate. There are several types of variable deals, some which track the rate, and some that change with the lender’s policy. If interest rates look like they may fall, then it may pay to be on a variable rate.
Repayment Mortgage	This mortgage is an arrangement that is made with your lender based on the principal that you pay the full amount back plus interest over a number of years.
Interest Only Mortgage	This mortgage is appealing to some; because repayments per month are (in most cases) lower than that of repayment mortgages as you only pay the interest on the loan.

Looking for property

My advice to any potential buyer is to do your homework! Decide where you would like to live and whether you can afford to live there. Think about the type of property you are looking for so that you can narrow down your search.

Before you view any potential properties of interest, have a short drive or walk around the area. And maybe re-visit at different times of the day.

Make a list of what your needs are. But try to keep an open mind…often people buy what they were not expecting to!

Things to remember when viewing

The only way to make your mind up about a property is to look at it, but in the limited time a viewing lasts you need to gather as much information as you can. Always take someone with you if you can, it's safer, and a second pair of eyes may spot things you miss.

It's a safe bet that you'll make your mind up within the first couple of minutes after you walk through the door! But if it's love at first sight, don't let that cloud your judgement. Ask yourself:

• Will my furniture fit?
• Is there enough storage?
• Is there enough natural light?
• Do I need to renovate or redecorate, and can I afford to do so?

Look for cracks in walls and around windows, and pay attention to the outside.

The state of the roof and (if present) guttering are important, Are there any missing roof tiles?

Take note of nearby properties, how many are for sale? If there are a lot, take note of the agents and see how long they have been on the market for.

• Are there any damp patches or potential signs of water leaks?
• Is there evidence of any ground movement or subsidence?

Good questions to ask the seller when visiting their home....

• What fixtures and fittings are included?
• How old is the property & how long have you lived here?
• What are the neighbours like?
• How many people have viewed?
• Has anyone put an offer in yet and if so, how much for?
• Why are you looking to move?
• How soon are you looking to move?

I want to put in an offer, what do I do?

If you have viewed a property advertised on-line and you would like to make an offer, then you must contact the seller directly to avoid them incurring agent fees (and passing that cost onto you!).

It is all about negotiating and agreeing a price, so don't be afraid to offer what you think the property is worth.

Ensure that both you, and the vendor are clear on the offer and that it is "subject to contract".

When in the process of closing the deal, don't forget that your position can prove more attractive to a seller for a number of reasons as listed below. If any of these apply to you, then use them to your advantage:

First time buyer	If yes, then you have an advantage over competitive bids because you have no chain and the sale can go through more quickly.
Large deposit	Don't worry if you haven't. But when it comes to borrowing money and getting mortgages approved, it may help. The more money you have to put down the more attractive a proposition you are!
Flexibility	Are you flexible about moving dates? The more flexible you can be to the seller's needs, the better.

Please note that an in-line publisher/advertiser cannot assist with the sale or purchase of a property; cannot field questions from a buyer or a seller, advise on the price nor get involved in any negotiations. This will mean an agent will claim their commission & the seller will have to bolster the price accordingly.

What a solicitor does

Once you have had an offer accepted you need to instruct a solicitor. The cost varies. Most charge a fixed fee, plus there are other things they may charge for. These are known as disbursements and include transfers, postage, taxes etc. Ideally, it is best to go to someone who is recommended to you independently.

This is the part where you have to, albeit reluctantly, start to part with your hard-saved cash! The last stage is completion, when the balance of the purchase price is paid to the vendor, and the keys to your new home are released.

Moving

If you're moving to your new home from a rental, make sure that you give notice to your landlord. You don't want have to pay rent for a property you're no longer in. And leave the rental in good condition. Not only is it common courtesy to do so, but it will also ensure you get your deposit back.

When you move:

• Change services into you name.
• Take meter readings on the day you move in.
• Arrange building and contents insurance.
• Get your post redirected.
• Let your friends, family and service providers, such as your bank and mobile phone provider etc, know your new contact details.

Agree your moving day well in advance and sort out any removal transport. If you have pets or children, you may want to get someone to look after them.

Finally pack yourself a survival kit and keep it somewhere where it won't get muddled up with other boxes! Include all ingredients for making tea and coffee, and you may want to make a packed lunch. Also include toilet roll, toiletries, and towels in case you want a shower at the end of the day.

In summary, when buying privately in Spain use a reputable website like www.spanishsalesdirect.com and you will get these bonus benefits that those who use estate agents and more traditional methods will not;

Bonus 1	Transparency: One benefit of buying directly is that you don't have to worry about misinterpretation or hidden agendas that may arise with a third party.
Bonus 2	Huge savings: Without the burden of estate agent fees put upon the seller, buyers benefit from their savings by paying a much fairer price.
Bonus 3	See a wide selection of properties chosen by you…not what an estate agent wants to show/sell you, in order to earn the highest commissions.
Bonus 4	Find the very best value for money properties in your area of choice that agents may not even have on their books at all!

If you are selling - see my other blog on this aspect of the private Spanish real estate market here.

And find out how Estate agents' contracts effect private selling HERE