Marbella, as in any tourist area, the majority of our inhabitants seem to know about the sales and purchase of properties, from the gardener to the waiter, almost everyone usually gives their opinion on the purchase and sale of properties. This, far from helping the future buyer, can confuse them because finding, negotiating and signing the purchase and sale of the intended property can become a difficult task and may lead to some unpleasant surprises.
First of all, the first thing you should think about is how much you want to invest, if you will need financing and what your budget will be for the proper maintenance of your property, community fees, municipal taxes, etc. Sometimes the buyer does not take enough into account the maintenance costs of the property and ends up with a problem instead of a second home or investment. Your available budget and income will decide when choosing the type of property and its location.
If you are going to need financing, it is important to calculate what amount we can afford for the purchase, since credit institutions will consider allocating a third of their total income for the amortization of mortgage loan payments. It must also be taken into account that the vast majority of banking entities will only grant you between 60 and 80 percent of the appraised value of the property, so you must have the rest plus the expenses for the deeds. In summary, if you need financing, before starting the property search it is advisable to investigate the possible financing that you can obtain through banking entities, comparing offers, interest rates and requirements.
Secondly, and depending on your budget, you must be very clear about what type of property will best suit your needs and for what reasons: property for permanent residence, for vacation, as an investment, for rent, etc. The property must have very important characteristics for you and your family or also for third parties as potential tenants. Always think about your tastes but also your real needs. You must also carefully select the location of the residential area where you want your property. This is just as important as the type of property you are looking for as it will influence, among others, prices, its possible revaluation or depreciation and infrastructure and services.
Study the area where you will buy to see the different factors of interest according to use and needs, such as transportation, schools, shops, beaches, golf courses, etc. It is worth highlighting the difference that a property on the beach represents with a farm in the interior or with a property in the city center. Don’t forget that the property you buy today will be part of your assets and one day you may want or need to sell. This is why you should pay special attention to the residential area where you will make your investment as well as the existing services and facilities.
A real estate expert with an agency established in the city for many years will know how to capture all your needs, will save you time and will help you at all times in all the steps until you get the property you need, putting all their infrastructure, experience and knowledge at your service, making it as easy as possible for you to search for the property and with the security of not encountering any surprises with your purchase.
What will make a difference between the potential real estate agents you could visit will be knowledge of the market, the level of experience and professionalism and, above all, honesty.
When you find the property that best suits your tastes and needs, we recommend you try to negotiate the price of the property. Depending on the type of property you are going to buy, there will be more or less possibility of negotiation. If it is a brand new property, the negotiation will almost always be zero. The new promotions have a fixed price list, with no room for price negotiation. If the development is under construction, depending on the developer, the payment conditions could be negotiated a little. It is in second-hand properties where you will have the most possibilities to negotiate the price. To know how to negotiate and how much to bid, we suggest you consider the following information:
There will always be a greater possibility of negotiation on properties that have been on the market longer. As a reference, you should know that a well-located property, in good condition and with a fair price normally has a sales period between six months and one year. Check with your agent or do your own research.
Investigate the price of properties similar in size, quality, age and location. It will easily detect if the property you are interested in is fairly priced and will help you decide the amount of your offer.
Whether the property needs renovations can help you a lot in negotiating the price, but remember that buying and renovating is not always the best option, unless the final purchase price justifies it. Do not negotiate without having a budget to be aware of the amount of the renovation.
Inquire about the reason for selling the property, more information can equal a better negotiating position. It is also important to try to find out if the seller has previously rejected other offers, on what dates and their amounts, in addition to helping you decide the amount of your offer, they will be able to capture the seller’s full attention.
Avoid making an offer that is too low, this strategy could have a negative effect and you would not get a response, the seller may not consider you as a serious buyer and you may even feel insulted. However, find a balance and make your first offer for an amount lower than your maximum limit. This will give you a certain advantage in the negotiation, as you can raise your maximum limit as you see fit if your first or subsequent offers are rejected by the seller. If the seller proposes a final counteroffer, don’t rush to give a response, take a couple of days to analyze it, do the math, and decide if it’s time to close the deal.
Without a doubt, an experienced real estate agent will be of maximum help in a negotiation as this is a fundamental part of his work and he has negotiated a multitude of sales. You will know how to reconcile, between buyer and seller, the opposing points of view that exist and no matter how complicated the negotiation may be, you will achieve the necessary balance for the sale to occur.
Make your offer in writing, indicating in addition to the amount of your offer, the amount and the date on which you could make the first payment on account of the price, normally 10% and sign the contract, as well as the date on which you intend to complete payment and sign public deed of sale. Also attach furniture inventory if applicable. Your offer will be considered more seriously by the seller. If your offer is accepted, proceed to formalize the sale according to the terms of your offer. For your peace of mind and security, you can hire the services of a lawyer to represent you in the purchase. It will check the property registry status in the Property Registry, prepare the private contract that will bind both parties to the sale under the terms agreed upon in the negotiation and prepare the public deed of sale, free of charges and encumbrances, to be signed before notary on the agreed day to complete the payment of the property. There are excellent law firms in our city and most of them can assist you in several languages. Attorney fees will amount to one percent of the value of the sale.
Finally, I recommend that you be patient in the negotiation, most agreements are reached after several offers and counteroffers. Negotiating and reaching an agreement is not impossible with the right help and strategy.
The time invested in this process can mean significant savings on the purchase of your property.
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Allegra Realty Marbella
www.allegrarealty.com
Avenida Antonio Belón 3 Local A
29602 Marbella – Malaga, Spain
+34 951 084 159
+34 619 099 079
info@allegrarealty.com
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