Cheap Property Spain - Read Before You Buy

As I have discussed in my previous REW Blog posts, there seems to now be a surge in interest in buying Spanish property that is regarded as below market value, either because it has been repossessed by a bank, an auction property or simply a vendor needing to sell because of acute financial circumstances. This is understandable as there are currently many "bargains" entering the marketplace and buyers who have been waiting patiently with their cash, feel now is a good time to strike. Although if you look carefully there are some gems out there, I think I should give a few commonsense pointers that everyone considering this route should apply whilst searching.

Remember that when a bank has repossessed a property, the previous owner will have gone through a tremendously difficult period, both mentally and financially. This can often mean that maintainence and general care for their property has been overlooked during this difficult time. Occasionally, before leaving , some people actually take out anything that has any residual value, including whole kitchens, bathrooms and fittings. Therefore it is imperative that you physically view the property you are interested in and never buy on the strength of an agents verbal description or some photos. Gaining access to such properties sometimes takes time as the agent will have to liase with the bank, so you must give sufficient notice and make yourself available for this.

When you gain access make sure you are equipped with a pen and paper, go through each room carefully and make meticulous notes about exactly what needs to be done to bring the property up to a desired standard. You can then price up the work and add it to the asking price to give you your the true cost of purchasing. This point seems too obvious, but in my experience I know of many clients who have bought without doing this, because they are so excited about the potential bargain price their property is being offered for.

The next stage is verifying whether or not this is actually a bargain, remember during the boom years property prices in certain areas got out of control, so if the discount is from the boom time price you are probably not getting a cheap property, just one at the normal current market value. How do you establish this? Through long, hard research into the development you are interested in. Speak to people who already own a property in the development, they will have a good idea of price history. Get on the web and trawl through all the relevant property sites. Strike up good relationships with some of the reputable real estate agencies in the area, then aggregate all your findings to build up a realistic picture of price/value of the property you are interested in.

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