Buying a house on the Costa Blanca, what are the steps?

Buying a house on the Costa Blanca is an exciting but complex undertaking. It does not go the same way as in the Netherlands. First of all, it’s a lot less transparent. The provision of information is really lousy in Spain. We’re not used to that at all. We have made a step-by-step plan for you. What should you pay attention to? And what needs to be done? You want to buy a house in Spain and you are in Spain. Apply for an NIE number. Then you can act immediately if you see a nice house.

Our own search began with looking in the windows at various realtors and browsing on Idealista.

1. The search

Think about what your goal is. Do you want to emigrate? Do you want a vacation home or just a good investment? Different goals require different houses. The portals in Spain cannot be compared to Funda. In the Netherlands the market is quite transparent. Here there are different entries of the same houses, with different brokers with different information. Yet every house is really the same. So check the information carefully.

Main websites: Kyero, Fotocasa, Idealista, Rightmove and Green Acres.

Challenges of these websites:

• • Multiple listings for the same house
  • Not always current information
  • No exact addresses due to privacy and exclusivity

2. Getting acquainted with a buying agent

After browsing window displays and online portals, how do you get to the right house? We are happy to help you as a buying agent. We know the area. Can give you tips about the process, about the market and developments. We also have off-market offers through our network. We can make a pre-selection for you. This will save you time and money.

Advantages:

• • One point of contact for the entire process
  • Local market knowledge and network
  • Costs you nothing extra (the seller pays the costs) *

For homes up to €250,000, we charge €2,000 for the entire accompaniment.

We show you the nicest places, provide you with market information, and in the case of an investment, we make return calculations for you. This includes an overnight stay and a tour of the region.

3. Negotiation & reservation contract

Have you found the ideal home? Then start negotiating. Determine what your absolute maximum is. Then we will start negotiating. We will give you advice about the market value of the house. If it is an investment, we will show this with a return on investment calculation and discuss our purchase strategy with you. Is the negotiation successful? Then a reservation contract will be drawn up.

Reservation Contract:

• • Confirms agreement between buyer and seller
  • Reservation fee of €5,000 – €6,000
  • Property will be withdrawn from sale

No one else can purchase the property after the reservation is confirmed. The property will be taken offline.

4. Legal checks

In the Netherlands, we as real estate agents make the purchase agreement ourselves and check the accompanying documents. This is not the case in Spain. Here only a lawyer can find this out. Please do the same. In Spain there are many properties that are not built according to the rules and if there are debts on the property, these will pass to you. Often this can be arranged as yet. For example getting the right permits or registrations for your property or getting this checked out. In the Netherlands the notary checks the attachments and debts and the notary takes care of the registration. This is not the case in Spain. Here the lawyer does this. We know a good lawyer.

• Checks:
  • Property, outstanding debts, mortgages
  • Identity of the parties
  • Registration in the property register
• Notary: Has a limited but crucial role. He witnesses the signing of the purchase agreement and verifies the identity of the parties.

5. Funding

Consider financing options in Spain:

• Maximum financing: 70% of home value
• Additional costs: 10% transfer tax and other legal fees. Allow for about 13% total.
• Tips: Make sure you know in advance if you can buy and finance

You can also increase the mortgage in the Netherlands if you buy the property as an investment. In Utrecht and surrounding areas, we can determine the value of your home. Then you will have the money available immediately.

6. Purchase Contract

After the reservation contract and all the checks, you will receive the purchase agreement from the lawyer. Usually this is after 2 or 3 weeks.

• Purchase contract: Describes all the terms of the agreement
• Down payment: 10% of the purchase price (minus reservation fee)

7. Transfer

Once everything is settled and paid for, it is time to go to the notary. Buyer, seller, lawyer and the real estate agent are present for this. At the notary, the transfer of ownership is signed and the notary is the witness to this. This also lists all the taxes. Smart to also appoint a gestor, who will make sure everything is and is paid.

8. Additional Charges

Buying a house and paying for it is 1. But consider the following acquisition costs:

• Total cost: 12-13% on top of the purchase price
• Specific costs:
  • 10% transfer tax
  • Notary, registration and attorney fees

9. Annual costs

In addition to one-time costs, there are annual costs:

• IBI: Municipal tax
• Lump sum rental value: Through income tax
• Basura: Garbage tax
• Gas, water and light: Utilities
• Insurance and maintenance: Contents, fire, building, garden and swimming pool

10. Management

After purchase, you are responsible for:

• Local taxes and utilities
• House maintenance
• Assistance: the Gestor can help you enroll and transfer contracts

11. Rental

Consider renting during vacation periods:

• Rental license required (you can request this through your Gestor)
• Tax on rental income

Would you like to spar about buying a house on the Costa Blanca? Could you use some help? Nice! Let’s get acquainted.