Steps to buy a house in Costa Blanca Spain

Are you thinking of buying a new home? If so, don't miss our article on the steps to buy a house in Costa Blanca Spain. We will explain the whole process in detail and whether it is better to buy from a private individual or through a real estate agency.

Steps to buy a house in Costa Blanca Spain

Before going into issues such as the delivery of documents, visits to the notary, signatures, which we will deal with later, it is important to take some basic steps that will help you to be clear about the type of property you really want and need. Take note!

Define the characteristics

The first step you should take is to define the characteristics you want for your property, for example: number of rooms, area in which it is located, inclusion of a garage, etc.

Be realistic with the budget you have. Even so, make a list of all the requirements that are essential to you. Later on, you may have to give up some of them, but it is important to have a clear and concise idea.

What is your budget?

Do you have some savings, do you need a mortgage? Determine what your budget is for buying a house. This will also help you to modify the list of features you made earlier. If you don't think you have enough money to buy a property in a certain area, you may have to choose another location, or settle for a smaller house, fewer rooms, etc.

Research the area

In case you do not know the area, we recommend that before taking the step of buying a house, you do some research on the place.

You can ask neighbours in the surrounding area about the environment and issues that are of vital importance to you.

Compare offers

Next, find out what the market price of the houses in the area is so you can compare offers.

This step is essential when buying a house from a private individual, as they may inflate the selling price.

Buying a new or second-hand house

Think about whether you want to buy a new house or, on the contrary, if you don't mind if it is second-hand. Bear in mind that not all areas will have houses under construction.

The process of buying a house

Now that you have gone through the basic steps, let's look at the process of buying a home.

Making an offer

The buyer proposes an offer to the seller which may or may not be equal to the asking price. At this point the negotiation process is established in order to reach a possible agreement. If both parties fix the final price, we will move on to the next point.

Knowing the state of the property

Next, the buyer is provided with all the information on the administrative status of the property: if it has unpaid debts, if it has been repossessed, if it is not up to date with IBI payments, etc.

Deposit contract

The earnest money contract (Contrato de Arras) is the document that serves to secure the transaction. At this point, the buyer pays a negotiated amount in advance. Normally, this money is between 5 or 15% of the purchase price.

In addition to the final price, the earnest money contract establishes a period of time for the transaction to take place.

Search for financing

We come to one of the most complex points: the search for a mortgage or financing. This process can be quite a challenge for the buyer, especially if they are not used to negotiating with banks. For this reason, going to a real estate agency will save you from having to go to every branch to get the best conditions.

Purchase and sale and public deed. The buyer and seller go to the notary to sign the deed. First the mortgage is signed, if there is one, and then the public deed of the property is signed.

The gestoría will be in charge of presenting the deed at the Land Registry to manage the change of ownership of the property.

Payment of taxes

Property Transfer Tax varies according to the Autonomous Community in which the property is located. However, in Spain, young people under 35 years of age will only pay 8% when it is their first habitual residence.

There are also exceptions for large families, the physically or mentally handicapped, etc.

The payment of the Plusvalia, in general, corresponds to the seller. On the other hand, the buyer must pay the annual Real Estate Tax. However, with regard to the latter tax, the payment of the receipt referring to the year of the sale may be agreed. Both parties can pay the part proportional to the time of ownership.

Other expenses are: the cost of the notary, the Land Registry and the agency. Once all these are settled, the buyer becomes the owner of the house.

Documentation required to buy a house in Costa Blanca Spain 

The basic documentation that must be taken to the notary's office is as follows:

• Valid National Identity Document (DNI)
• Last receipt of Property and Real Estate Tax. This is required for second-hand homes. This document is requested at the Town Hall where the property is located.
• Certificate of the Community of Owners. This certificate confirms that the flat is up to date with the payment of the community fees.
• Personalised information sheet and binding offer (FIPER). This shows the mortgage conditions. It is recommended to take it with you on the day of the signing to ask any questions you may have.

You may find all these steps to buy a house in Costa Blanca Spain a little difficult; however, when the buyer goes to a real estate agency, a team of professionals will take care of all the formalities. There is no doubt that this saves a great deal of time and also provides greater security for the client, as there will be no possible scams or other unpleasant surprises. In the following point we will discuss the advantages and disadvantages of buying with a private individual and a real estate agency.

How to buy a house in Costa Blanca Spain

Real estate or private? The first thing that is usually thought is that buying a house without intermediaries is cheaper, since you will save the costs established by the real estate agency. Generally, commissions range between 2 and 5% approximately.

However, you should also be aware that it involves a higher risk. It is common to find sellers who do business illegally and cheat the buyer.

If you are not knowledgeable about legislation, mortgages and other areas of real estate, it makes sense to have professionals take care of all the paperwork for you.

The main advantages of buying a house with a real estate agent are the following:

• You will not have to worry about sending documents or other complex procedures.
• They will guide and advise you.
• You will get the best mortgage conditions.
• They will help you to find your ideal home and at the same time fit your budget.
• Everything will be done legally and you will be protected from fraud.

Digital real estate agencies: a new way of buying a house in Costa Blanca Spain 

In addition to traditional agencies, which have a physical office, there are also digital real estate agencies.

At first, you may be reluctant to trust their services; however, you should know that the fact that they do not have a physical office has more advantages than disadvantages.

The price charged by this type of agency is more economical for clients. In fact, they stand out for not establishing commissions. Instead, they charge a fixed price that does not depend on the price of the property.

On the other hand, almost all the procedures are carried out online, so you do not have to go to an office. You can hold meetings and consultations with a professional via videoconferencing.

Digital real estate agencies are equipped with the best technological tools to provide their clients with security and convenience. For example, they have a good real estate website with the characteristics of each property, photos, videos, virtual tours, 3D images, etc.

Conclusion

Now you know what are the steps to follow to buy a house in Costa Blanca Spain and how the procedure is developed.

As you have seen throughout the article, there are several factors that you should not overlook, as well as some basic steps that are of vital importance when selecting a new home.

We recommend that you take into account the advantages of carrying out all the procedures with the help of a professional agency instead of going directly to a private seller.