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
2. Typically foreigners will pay more because it is cheaper than a similar property at home.
3. Many people have unrealistic expectations about their property value

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

---

Real Estate Investing - Maximum Leveraging of Your Money

At this moment, you have access to some amount of... Read More

Dont be Tempted by We Buy Houses (Updated)

Do you want to sell your home right away? Don't... Read More

Buying Property in Spain - How to Avoid Paying over the Odds

Spain has a lot to offer Northern Europeans and until... Read More

Why I Love Country Living

As somone who has lived in both places, I can... Read More

Real Estate Investing Skill Acquisition

Real estate investing is not in any list of high... Read More

Real Estate Appraisal - Rental Properties

Real estate appraisal for rental properties isn't the same as... Read More

FSBO - Selling Your Home FSBO (for sale by owner) ? Is It Worth It?

FSBO, what is it? FSBO means For Sale by Owner,... Read More

Find Out If There Are Sexual Predators Nearby Before You Buy A Home or Property!

When looking for a new home or property, buyers ask... Read More

What Is a CMA

"CMA" is an abbreviation real estate agents use for a... Read More

Home Appraisal Values Are Critical

To most, owning a home is a necessity, but sometimes... Read More

For Sale in Ridgefield

Ridgefield Connecticut, located near the New York border, is a... Read More

Investment Property - Leveraging Rental Property Equity

Owning investment property is a tremendous wealth building strategy. Thousands... Read More

What Is Home Staging And How Does It Help To Sell My House

Home staging is the concept of preparing a house for... Read More

Selling Your Own Home ? Pet Issues

If you are selling you own home, you need to... Read More

Youre Not Paranoid: The House Really Hates You

If you've just bought a house, you may be able... Read More

10 Easy but Essential Steps for Home Selling Success

They say that the whole process of selling up, buying... Read More

How to Own a Dream Home in Spain

Every year hundreds of thousands of foreign visitors travel to... Read More

The Bubble Effect

Turn on the TV at almost any time day or... Read More

Property Investment - Buying A Holiday Home in Cyprus

Cyprus is fast becoming a property hotspot for thousands of... Read More

Should You Sell Your Home Yourself?

Are you thinking about selling your home? Would you like... Read More

Real Estate Investing with No Cash and No Credit

Lots of folks think it can't be done.How in the... Read More

Think You Can?t Afford Your Own Home, Think Again!

Do you have bad credit, no credit, filed a bankruptcy,... Read More

The Benefits of Fractional Ownership in Private Residence Clubs

A New Way to Own a Vacation Home - For... Read More

Real Estate Investing Is A Better Gamble Than The Lottery

Real estate investing begins when you move to the starting... Read More

Sell your Property Faster

Learn how to sell your property faster and at the... Read More

Real Estate Investing - Books,TV Infomercials, and Seminars

Real estate investing has become popularized today because of real... Read More

What Homeowners Should Know to Stop Foreclosure- Speaking Your Lenders Language

Financial literacy is the means of empowering consumers to make... Read More

Why Not To Invest In Bulgarian Property

According to research carried out by the Thomson Group, owning... Read More

What Should I Do If My Home Isnt Selling?

Suppose you've been trying to sell your home for months.... Read More

Real Estate News

Happy New Year, Make it a better world. "Pay it... Read More

Selling a House is Easy

The thought of selling a house strikes fear into most... Read More

Preserve Equity, Build for the Future Using a 1031 Tax Exchange

Thinking of trading up on an investment resort property? If... Read More

Big Discounts With Property Investment Clubs?

A stagnant stock market, low interest rates and booming property... Read More