Tips for negotiating a discount on the price of your dream property
-
Loading... - Mason Bell
- 16 Mar 2022
- 410 Views
- 0 Like
- 0 Comment
If you are one of those who are looking for a house in Spain, but don't know what you want, buying a home can be a long process. Before sitting down to look at idealista, establish a budget, your ideal house type and the area that suits you best. Analyse the market and get to know the state of the property you are interested in. This way, you will be able to negotiate with the seller a price that meets both your needs. Don't forget that you can also hire a real estate professional who will save you a lot of time and solve all your legal doubts.
The current real estate cycle presents a moderate evolution of property prices, at a time when the market is reaching record figures in terms of real estate transactions. Both notaries and registrars and the National Statistics Institute (INE) are recording sales figures at the same level as in 2008, after the market came to a standstill due to the coronavirus pandemic.
Several factors may have come together for this current situation in the residential market. On the one hand, pent-up demand has waited until the worst of the health crisis was over before deciding to take the plunge and buy a house. Another factor may be the improved savings capacity of households, which during the worst of the lockdown kept their jobs and managed to increase their savings in the face of the impossibility of spending on many activities that were interrupted.
In addition, there is the possibility of an increase in purchases and sales out of necessity, as many families have realised that the house they lived in did not fulfil the function that many households now need, from the interior and exterior space, to the qualities of the housing. Also, there has been an increase in the purchase of homes as an investment, where experts highlight real estate as a safe haven asset for savers in the current economic situation.
Whatever the case you are in, when it comes to finding a house, one of the main factors to take into account is the price. One of the most important parts that has to do with price is the possible negotiation of the initial offer on the market, for a reduction in the final price, which experts usually round up to 10%. But each case is unique, and it all depends on many factors. Here are some tips to know the margin to negotiate and manage to buy a house at a discount.
Set a budget
Know up to what price you can afford to buy a house, and bear in mind that you can think about applying for a mortgage loan. "A fundamental requirement is to go to a financial institution to ensure that a mortgage loan can be granted," say the experts at Donpiso. Know the maximum amount that the bank is willing to lend you with a mortgage. In general, it will be 80% of the appraised value of the property.
The remaining 20% will have to come from your savings, and don't forget to add between 10% and 15% for taxes and other incidentals.
Analyse the market in the area
Once you have a budget, and you have already decided where you are going to look for a house, you should analyse the residential market in the area where you have chosen to find out if the house you like is in price or not. You can soak up the real estate portals and all the complete information they offer, or go to the real estate agencies in the area to ask questions, also to the neighbours, and take a tour of the area, if you don't know it before.
If you don't have time for this, consider hiring a real estate agent to accompany you and advise you throughout the transaction.
Get to know the property you have fallen in love with
If you have already narrowed down your search field, and you have been left with a few offers, the next step is to find out how the property is. On the one hand, know the physical state of the property and the building, in case it needs renovation or rehabilitation, and the magnitude of the same, which can increase the amount of money you are going to contribute to the purchase of your home.
On the other hand, check the legal situation of the property. You can find out the legal situation of the property by means of the nota simple of the Land Registry. It may come from an inheritance, be repossessed or burdened with a mortgage from its current owner, etc. Also, find out the community fees of the property so you know what you are paying each month. Read More…
