Patience and caution: The secret to securing the best Spanish deals
British buyers tempted by the discounts and finance deals that come with repossessed properties in Spain should choose where they invest carefully, plan any viewing trips well in advance and be prepared for a more complicated buying process than usual, a leading estate agency on the Costa Blanca has advised.
HomeEspana, which has three offices on the Costa Blanca, explained that while repossessed properties can be incredible bargains, the very fact they are sold by banks means each sale involves more red tape and requires extra due diligence than a standard sale. After launching its dedicated Repossessions Team in the second half of 2012, HomeEspana also stressed that finding an estate agency that has good relationships with banks and can pick out banks' good stock from their bad is vital to a successful purchase.
Kieran Byrne, Managing Director at HomeEspana, said: "As in any country, there are key locations where you should buy and areas you should avoid. Unfortunately, many of the properties that were repossessed are in locations that are struggling to maintain current market values.
"In order to secure the best deals for our clients, ones they won't find anywhere else, we have strong relationships at the highest level within local banks, with whom our Spanish product manager is negotiating on a daily basis. This also means we are able to confidently guide clients through the buying process, which can be complex with repossessions, and advise them on the finance deals available with each property."
Further to that, HomeEspana's excellent local knowledge, gained from 10 years selling resale and new-build property on the Costa Blanca, means the company can advise which developments are best avoided when searching for repossessed property.
To help buyers prepare for a repossession purchase, HomeEspana offers the following invaluable tips:
The sales process for repossessions differs from bank to bank. Completion can take around two months, due to the large amount of paperwork and need for approval at different levels within a bank.
Not all banks are open to offers. With those that do, the offer process can take over two weeks and some banks ask buyers to pay a deposit, typically €3,000, to put forward their offer.
Banks can take days, sometimes weeks, just to get hold of keys to a property. If you want to view a selection of repossessed units, coordinate your viewing trip with the estate agent acting for the bank accordingly.
Repossessed properties come in all states of repair and are sold "as seen". If a property has been vacant for some time, there could be issues with mould, while previous owners may have salvaged fittings before leaving. Utilities are likely to need (re-)connecting. A good lawyer will do due diligence and check a property is "clean" and free of encumbrances.
Many of the best bargains are snapped up over the phone by investors. More careful buyers need to combine being quick with being both cautious and patient with the Spanish banks.
Repossessed property currently being promoted by HomeEspana includes detached villas and a selection of apartments and townhouses starting at €69,000. One example is this three-bedroom, two-bathroom villa in Pinar de Campoverde in the southern Costa Blanca - on a corner plot, and with a garden and solarium, it's on the market for just €135,000.
For further information, visit homeespana.co.uk.
