My previous blog on buyer beware are so well received, that I thought I would do another of lessons learned in my time working with Spanish real estate.
As I mentioned before, Spanish landlords, sellers and real estate professionals often create such urgency that a given property will be snatched up quickly, that they do not share pertinent information with you. Here are some examples to keep in mind:
Is the property rented? When will the tenants vacate?
What furnishings stay with the property, if any?
Does the home have central air, room air conditioning or heating? Especially be aware of this when looking at listings online. If it is not mentioned, it more often than not, does not have those items.
Are there any special assessments on the building that will be transferred to you after closing?
What are the property taxes?
What are the monthly and quarterly association fees?
Is a rental agent trying to charge you a commission? A new law states that the landlord is responsible for paying that agent.
If the property was not previously zoned as a residence, does the owner have a document from the city stating that it is now zoned as a residence? If not, you could wait months and months for the city to approve it, thus delaying your closing.
If utilities, such as a water meter, is not installed or turned on, who pays for that? If it is turned on, do not let the owner transfer it to you prior to closing or you may be responsible for paying for the time you did not own the property.
In Valencia province (and only here), buyers are responsible for paying their buyer's agent the 3% commission. That is the case with any real estate professional you work with. Do not let an agent charge you more!
NEVER send money until a contract has been signed by both interested parties.
Always use a real estate attorney, chosen by you! The cost is 1-2% of the purchase price and money well spent.
Property inspections are not common here. You have the right to have one so that you are aware of any issues but most sellers will do nothing to repair those items. You are basically buying the property as-is.
Photos on real estate websites, such as idealista, can be renderings. They show you pictures of what the home could look like after you renovate it.
A lot of listings by private owners on websites are commonly scams. If it sounds too good to be true, it usually is. And if they ask for money and other personal information such as passports or financial statements before the contract is signed, run, do not walk away!
Square footage, or in our case, square meters is often quoted as constructed, not liveable. Constructed would include areas like patios or terraces which is not liveable space.
New construction, especially those not yet started, can take 1-1.5 years for completion. If they do not yet have an approval from the city, it could take much, much longer. Also, in addition to all the taxes, fees and commission you will pay on any property, new construction has an additional 1.5% added value tax.
If you live in a "bajo" or ground floor with a terrace (as I do) be prepared for falling object from neighbors above, such as, laundry, cigarettes or other miscellaneous objects.
A tourist license for a AirBnB usage, may be in place for the current owner, but it is not guaranteed that the city will renew it for you, even if the agent says otherwise. Cities like Madrid and Barcelona are already doing away with AirBnBs and it is only a matter of time that Valencia will follow.
I firmly believe that a buyer's agent can make or break the deal. When at all possible work with a buyer's agent that has no relationship with the seller. Someone like myself, who has no sellers that I represent, will always look out for your best interests. A seller's agent, who gets paid by the seller, is motivated to sell that property no matter what. They will not put your interests first!
I have been a real estate professional for 32 years. (30 years in the USA and 2 years in Valencia) I have a network of the largest real estate agencies that will collaborate with me. I am responsive, knowledgeable and honest. If I can be of any help, do not hesitate in contacting me!
Useful information! Thank you!