Buyers Guide 2024 - Verdin Property SL

ABOUT OUR COMPANY

Verdin Property is an award winning luxury real estate agency based close to the world famous Puente Romano resort on Marbella’s Golden Mile, primarily serving the super prime areas of Marbella, Benahavis and Sotogrande. Specializing in the promotion and sale of multi-million euro properties, the team are often to be seen in the affluent areas of The Golden Mile, Nueva Andalucia, La Zagaleta, El Madroñal and La Reserva de Sotogrande

Established in 2016 by Tyler and Dean Verdin, Verdin Property holds a well respected position among local agencies, as well as their own clients, as being very straightforward, trustworthy and easy going.

Our business is built on the reputation gained for providing exceptional service to both our buyers and sellers, so we constantly strive to keep on top of the latest trends and ensure we are always at the forefront of the real estate market. We take great pride in our work and constantly adapt to the dynamic and evolving real estate industry through dedication and innovative solutions

VERDIN PROPERTY ARE PROUD TO BE FOUNDING MEMBERS OF THE GUILD OF SPANISH PROPERTY PROFESSIONALS, AN ASSOCIATION OF THE MOST REPUTABLE AND PROFESSIONAL COMPANIES WITHIN THE REAL ESTATE INDUSTRY ACROSS SPAIN.

VERDIN PROPERTY ARE ALSO PROUD TO ANNOUNCE THAT WE WON TWO AWARDS FOR OUR WEBSITE AT THE 2023 INTERNATIONAL PROPERTY AWARDS IN LONDON ON JUNE 27TH 2023.

OUTLINING THE BUYING PROCESS

Deciding to buy a property in Spain is an exciting and potentially life changing decision. Whilst there are some differences from buying properties in other countries, it's not too complicated once you understand the process.

You also have the reassurance that Verdin Property will always be at hand to assist as much as we can

Below, we outline the basic steps of the buying process You can then jump ahead to read about each one in slightly more detail.

FINANCE: The most important basic step for any purchaser Make sure to do a financial calculation of how you are purchasing a property and whether or not you will be asking for a mortgage This can add approximately 2-3 months on to your timeframe. Remember to add on approximately 10% to your budget to allow for buying costs

LEGAL: Always make sure you have a trusted legal representative to be able to check property documents, process your Spanish ID and banking process

VIEWINGS: Agents on the Costa del Sol have a sharing MLS network, so you only need one agent to be able to show you every property. Ensure your agent is happy to show you all properties, not just their own stock where the underlying motive is higher commission.

DEPOSITS: In Spain we typically have a three stage process Firstly a holding deposit to take the property off the market. This ranges from 6000€ to 1% of the purchase price depending on value Then we go to PPC (Private Purchase Contract) where you pay 10% of the price, minus what has been paid already as a holding deposit. Finally a date is set to sign the paperwork at the Notary Public where you will pay the balance and become the legal owner.

FINANCE

Finance. The most important basic step for any purchaser.

We recommend all our customers who’re thinking of buying a new property to set up a plan and do some calculations of how you will finance the property before you start looking. In case you will apply for a mortgage we recommend you to apply for an offer to find out your budget and what your options are.

One option is to apply for a mortgage in a Spanish bank, where you usually can get a mortgage for up to 60-70% of the property value Another option is to mortgage your existing home via your bank in your country.

Having a good overview of your finance gives you an idea what you can expect for the budget, what your new monthly cost will be and allow you to act in the most efficient manner when the right property comes along

Your sales agent will not be involved in the financing, but can provide you with our recommendations of bank options and legal representation

We recommend everyone, both vendors and buyers, to hire a legal representative with experience of the Spanish property market / transactions to represent you throughout the purchase.

The lawyer will cost you 1% of the agreed price of the property on average, which is a relatively small cost compared to that it will save you from future trouble and costs if something goes wrong in your purchase For example all debts belonging to the property, such as bank loans, local taxes and fees are taken over by the new owner if the vendor doesn’t apply for a change

This is included in the lawyers due diligence of the property and they will confirm that there are no outstanding debts on the property before you complete the purchase.

Those who're not Spanish residents need a NIE number to buy a property in Spain, which acts as a Spanish identification number for foreigners. The NIE number is a tax number which is required to buy property, pay taxes, acquire a bank account, sign up for any subscriptions, such as telephone, electricity, etc

Your lawyer will apply and provide you with your NIE number, which is included in the 1% that you pay to the lawyer in a purchase.

VIEWINGS

Viewings in Spain are often quite different from what you may be used to in other countries Here on the Costa Del Sol agents use a sharing MLS network This means that just one agent, one you trust and get along well with, can show you every property that is for sale.

When viewing properties with the Verdin team, we will typically show a maximum of 5-6 properties per day, otherwise by the time you get to the end you will have forgotten all about the first few properties!

We always advise prospective purchasers to choose their agent carefully and ask plenty of questions about the market and stock levels as some agents only want to show their own directly listed properties, with the ulterior motive being a higher commission for them.

In Spain, the customer often views several properties individually with the sales agent, which also means that you have enough time to ask questions without stress.

Your sales agent will attend all your viewings and can also give their recommendations and / or pros and cons according to our knowledge

NEW DEVELOPMENT VS RESALE

NEW DEVELOPMENT

At all the new developments, it’s the developer of the property who becomes the vendor The developer, together with your sales agent, will provide you with all information about the development such as when it’s going to be built, finished and when the access of the properties will take place There are renders, site plans and floor plans of the development to give you a clear picture how the result will look like.

The payment plan of buying a new development depends of the developer but usually a reservation cost of 10-20% will be paid to take the property off the market, followed by slightly higher payments during construction and upon completion of the project and the granting the occupancy license

NEW DEVELOPMENT VS RESALE

RESALE PROPERTIES

A resale property is an existing property that has had previous owners, where you buy the property from the current owner.

All resale properties are sold in existing conditions with respect to age, price and usage. It’s the buyer’s responsibility to check the property before signing the purchase contract

Your legal representation will help you to make due diligence of the property to see that everything is in order and that it will be a safe purchase.

Property tax of a resale property is 7% on top of the agreed price of the property

COSTS & COMPLETION

Purchase Costs: When you buy a property, we always tell our clients to make sure to add approximately 10% on top of the agreed price of the property and it’s important that this is included in your budget. The buyer pays following costs additional to the agreed property price.

Transfer tax: Property tax is 7% for a resale property and 10% of a property bought from a new development

VAT: VAT is 10% and shall be paid when a home is being sold for the first time. In addition to VAT, stamp duty shall be paid for the issue of the legal documents. This is normally 1 2%

Notary and registration fees: In most cases the notary fees are between 500€ and 800€. If you have applied for a mortgage on the property, you will also need to pay the notary fees for the title registration linked to the mortgage Title registration fees are in most cases between 300€ and 500€

Legal fees: Most lawyers charge around 1% of the agreed property price. This might be negotiable for more expensive properties Some charge by the hour and others offer a set fee

Completing the purchase: When the due diligence, documents and finances are done, it's time to complete the purchase. The date of the completion is written in the purchase contract and it takes place at the notary At this time the registration is made that the property has a new owner, and the agreed property price will be transferred to the vendor. The keys to your new home will then be handed over.

* Please note that Verdin Property are not lawyers, accountants, or tax advisers. We always advise our clients to seek and take professional legal advice at all stages of a property purchase or any related financial transaction. The information in this buyers guide is compiled via the Spanish government, regional government and local authorities, and is kept up to date as much as possible. Verdin Property shall not be held liable for any problems that arise should appropriate legal representation not be sought and taken during any financial and / or property related transaction.