Go-to-Spain ::: Article: buying a property in Spain

BUYING A PROPERTY IN SPAIN
Every year thousands of people from the UK buy a property in Spain. For most of them it is a straightforward relatively simple transaction, and they go on to enjoy their very own 'place in the sun', whether it's a holiday or retirement home, or an investment property with land in the Ebro Valley, on the Costa Blanca or any other part of Spain. However, there are a few people for whom the whole experience is miserable. How can you stop this happening to you?

Where to start:
The most important aspect of finding the 'right people to deal with' is how well you get on with them, and whether or not you feel you can trust them. Do ask them if you can speak to other clients who have already bought. It is very reassuring to know that other people are happy with their service. If you spend some time talking to the Spanish Property company and asking them questions, you will be better equipped to make a rational decision. Don't rush into dealing with one particular company just because it is the first you have approached.

Local UK Estate Agent:
If you have a local estate agent in the UK who deals in Spanish Property, that is a very good place to start, because you will know what their reputation is, and they are unlikely to disappear overnight. More than likely they are dealing with another company who specialises in selling Spanish Property, and they will have done their homework; they will not wish to have their good name sullied by a disreputable or unhelpful partner. But do check that they have a good range of property, unless you know quite specifically that the particular golf course property they are advertising is exactly what you want.

When the Spanish Property company contacts you, tick off a few qualifications: are they friendly and easy to talk to? Do they really listen to you and try to help, or are they intent on just getting you out to Spain as soon as possible? Are they knowledgeable and able to answer your questions? Are they respectful of your time - or do they keep pestering you? Do they have a good website which is kept up to date and is easy to use? If you are not on the Internet, do they put information in the post when they say they will? This may seem obvious, but it's often overlooked - would you deal with these people if you were buying a property in the UK? But please also respect the company's time: don't spend hours asking questions and then go off and buy from someone else!

Specialist Spanish Property Shop:
Many of these have sprouted up in the past few years. If you visit one of these, do check how long they have been there and whether they are tied-in to particular developments in Spain or whether they are independent. Sales of Spanish property have declined in the past year which means that companies with big overheads may be struggling. Several 'big names' have had to lay-off hundreds of staff in Spain, and some developments may well not be finished to the standard originally advertised.

Property Exhibitions:
These can be very useful in gathering information, but do not be mis-led by claims that 'we are bigger than the rest so our prices are better', or, conversely 'we are smaller than the rest so we give you a better deal'. When it comes to buying a property, if it is new-build, off-plan, the price is virtually always the same whoever you buy through. Some companies will offer you subsidised or even free Inspection Trips, but remember if you take them up on this, you may well feel under pressure to buy, even if no pressure is actually exerted. Beware too of looking at properties in groups. Are you strong enough to withstand peer pressure if all around you seem to be buying when you are not quite sure? Remember too that many companies have their own constructors and developments and you may be restricted to viewing only a few, whereas you might wish to have a lot more choice. You may also be taken to see properties which other members of the group wish to see, but in which you have absolutely no interest. A company which deals on a one-to-one basis is usually more relaxed and geared to your specific requirements. But if you like the camaraderie and the party atmosphere, you may well enjoy being in a larger group.

When you attend an exhibition you may be invited to fill in your contact details. You may never hear from them again, but the chances are, they will register your name with many of the developers in Spain. This means that if you buy from that particular developer, the company who registered you will get the commission. For the same reason, the smartly-dressed people with clipboards at the airport are anxious to obtain your name and address. Some developers have become wise to this practice and are saying that 'whoever brings the customer through the door gets the commission'. (More about commissions later!) If you get on well with the people at the exhibition and they are doing a good job, build up a rapport with them so that you can assess whether or not you wish to deal with them.

Website
There are many excellent websites with property for sale in Spain. Which one do you choose? Is it simply a matter of finding a property you like and hoping that the company is OK? Try contacting them and asking a few questions. How well do they respond? You are probably going to feel more comfortable dealing with a company based in the UK with strong connections in Spain. These are all things you can ask about. A note or warning: properties in Spain are often offered for sale through several agents and websites. Do not discount a website if a particular property appears cheaper on someone else's. Similarly, watch out for websites whose prices seem to be low. It's a common ploy to advertise property very cheaply just to get the response from clients. Once you have responded they will often entice you to go out on a visit, but when you get there, the cheap properties are all sold.

Estate Agents in Spain
Most agents are excellent, but there are always some who are not, and this is often where the trouble starts. How well can you trust someone whom you have met only a few minutes before? Remember that there are a lot of legal requirements to be fulfilled when buying in Spain - are you sure these people will be able to adequately explain it all to you? Will they be there to help after you have bought, to advise on hospitals, schools, planning permission, etc., or will they simply sell you the property and move on to the next client? Remember, too, that re-sale property is where you are most likely to be 'ripped-off'. The procedure for selling a property in Spain is that the vendor tells the agent how much money he wants for his property. The agent then puts on his commission. Obviously, this can lead to huge variations in price as it is usual for one property to be put with several agents. Agents work together: if one does not have a property to suit a particular client, he will show the client a property from another agent. If the client buys, the agents split the commission. Agents from the UK who introduce clients receive a share of the commission; they do not put their commission on top. UK agents work hard to find reliable, honest estate agents in Spain, usually going to great lengths to visit them regularly and continually assess their performance. It is obviously in their interests to deal with people of the utmost integrity. In many cases, UK agents have their 'own people' in Spain who look after clients and source the properties. These are probably the most helpful and reliable.

Commissions
Generally speaking, commissions on newbuild properties are much higher than on re-sale properties. It is as well to remember this when you are discussing what you want with the Spanish property company! Do remember, though, that there are often several people to share the commission - people in the UK and people in Spain - and the usual business overheads. If you buy direct from the developers and cut out the agents, you will pay the same price, and the developers will pocket the difference. For this reason, it is always best to deal with a reputable agent who will act on your behalf and with whom you can keep in touch after the purchase.

Investments
There is much talk about 'good investments', but no property is a good investment until you can sell it at a profit or let it out regularly. There are many things to consider, and if you are not experienced in buying property for investment, do take professional advice. A good Spanish Property Agent will either be able to give that advice, or pass you on to someone who is qualified to do so.

Decide what you want
Make a list of the things which are important to you - both in terms of the location, price and style of the property you'd like, and also the personal things like proximity to shops, other Brits around, in the Spanish community, etc. Many people have no idea where exactly they want to be. This is something to discuss with the Spanish property company - a good reason to find one who deals in several different areas of Spain and who is not biased to any particular area.

Television programmes urge you to 'do your homework' - very sensible - but don't make the mistake of thinking you will be better off undertaking the whole project yourself. There is absolutely nothing to be gained by doing this - indeed this is where most people come unstuck. Most of the people who have a sorry tale to tell about purchasing property in Spain could have avoided all the heartache if they had gone through reputable UK agents.

Good advice is priceless, and a reputable company will go to great lengths to help you.

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