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AIPP: the industry body, the industry voice, the industry standard - AIPP: the industry body, the industry voice, the industry standard

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Buying and Selling Spanish Property...

Modern Spain is a young, vibrant and exciting country that has changed greatly in the last 35 years. Now one of the worlds great economies, Spain maintains its proud history and rich, diverse culture. It is full of strong traditions has a wonderful warm climate. It has been a magnet for overseas persons wanting to buy a holiday home or second home and live the dream.

Spain is a large country and before one decides to buy property in this country a good deal of ground work has to be done working out which part of the country suits you best. A good starting place as well is to understand how the actual property market works in this country, how do you buy property, who sells it and how do they operate ? The more information you have about the structure of the market, the simpler and possibly more economic it will be for you to choose from whom to buy your Spanish property.

Local people, will often buy property because via word of mouth, they hear that property is coming on to the market, often, if you have the opportunity to live in a location for a while you may be able to build up local contacts that can alert you to property sales that never need an agent to intervene or ever really are advertised.

You could call this local networking, and if you became friendly with people there is no reason to suppose that they will not consider selling you property. Local newspapers are also employed and you may find that people take out a small box advert as opposed to employing the services of a Spanish estate agent.

However, overseas purchasers are more used to dealing with agents and certainly if you have no local knowledge, you will need someone to guide you. However, remember the golden rile, not all Spanish Estate agents are the same. Whilst many do stirling work and provide a good service, others fall far short of being ethical, competent or professional. Problems really started for overseas investors when the Spanish government , deregulated the market in 2000 and now anyone regardless of qualification or knowledge or being a resident of Spain, can if they so wish, sell Spanish property.

Alas amongst some people involved in the selling of homes in Spain, this has led to a cavalier attitude with some very high commissions being charged on property sales. Commissions can be as high as 30% and with estate agent size is no guide to quality. In view of the above and before you decide on a sale you must take steps to ensure that the agent you are dealing with is competent and professional, certainly maintaining your independent legal representation will help and being offered a solicitor by an estate agent should be considered with extreme caution.

Spanish estate agents, tend to focus on the indigenous local population and you may not find that have too many English speaking staff. Coastal estate agents will; differ as this is where the bulk of overseas property buyers are looking to make purchasers. However, inland you may have a problem certainly with the language but local Spanish agents may offer the best advice and in more remote areas will have the added advantage of excellent local knowledge. On the whole it may be better to consider using the services of a company that can speak your language and you feel comfortable with.

The new breed of estate agent is Spain is foreign owned and has sprung up as a result of large scale demand. These companies can appear more professional that local agents and often many have websites offering thousands of properties for sale. These companies are very pro-active in selling property and many can be seen at the never ending supply of property exhibitions dotted all over the country. Professionals is polarised between, excellent and appalling, do your own research before you use one.

In more rural areas local property brokers are used, these are known as Corredores and are often well known and respected members of the community. Many Spanish people prefer to approach a Corredores to sell their property on their behalf, the fees are modest and it relieves the burden of having to negotiate with buyers and estate agent. The Corredores will handle all of this. Alas as most are of Spanish Origin, you will probably need a good command of Spanish to deal with one.

Another recent development, mainly as a result of the Internet, is the agency network. Many agents will now share customers if they do not have a suitable property on the books. This type of sale also needs to be approached with caution as two agents normally means that the fee will be higher. Another development on the Internet is that of the virtual estate agent, these are normally internet marketing companies who through various techniques, sell other persons products via a website that has been customised to look like their own. If following links from websites, always pay attention to the company actually offering the property for sale and not the marketing company who usually just being paid a referral fee per sale.

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