Mortgage for overseas property: What you need to know
Getting ready to buy a property abroad? Read our guide on mortgage for overseas property, including the application process and costs involved.
Beautiful Marbella is a hugely popular destination for holidaymakers and expats alike, from the UK, Ireland and many other places too. Situated at the heart of the Costa del Sol, it’s an idyllic spot of sun and sand overlooking the Mediterranean Sea. But how do you find the Spanish real estate agency that’s right for you?
Whether you’re buying, selling or renting, finding an estate agent is a hugely important step, which will shape the whole of the process. The right agent will find you the best property in the perfect location, or the best buyer at the right price, while the wrong agent could mean you end up in the wrong part of town or waiting frustratingly long for a decent offer.
This article will help you with:
One thing is pretty certain, no matter what you need your estate agent for. Some money is going to change hands at some point. And if you’re going to need to send money between Spain and the UK, you should consider using Wise to cut back on bank fees and bad exchange rates.
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Now, back to what you came here to read.
It’s no surprise that a wealthy and popular destination like Marbella is home to a large number of estate agents. Up and down the coast, you’ll find plenty of options for you to consider.
As ever these days, you have 2 main options. You can either look online for an agency, or pound the pavement and find your perfect local estate agent in person.
Both options have their pros and cons. If you go in person to an agency, you can get a real sense of how they operate, meet the team, and immediately get some personalised advice: it’s a more enjoyable experience. However, it can also be quite limiting: which agencies you visit will likely depend heavily on your location, and your impression could be strongly affected by whoever happens to be at the front desk that day. The other problem, of course, is that you actually have to be in Marbella: if you’re mostly based elsewhere, then this option could be hugely inconvenient.
Staying online has some obvious advantages: most of all, convenience. Whenever you have a free moment, you can browse among agencies, and get a sense of what they’re really like via email or phone. This is a great way to whittle down a potentially infinite list of options into a manageable one, without arbitrary restrictions like the agent’s location. Be careful you don’t simply choose the agent with the best-looking website, though: there’s more to it than that.
Additionally, handling the process online can mean you may fall to the bottom of an agent’s list of priorities, it can make everything a lot less personal, and there’s a chance you’ll end up losing out on the best options.
The best approach is often a mixture: do some initial research online, and book yourself a trip to Marbella once you’ve got a few appointments in the bag.
As you’ll quickly discover, there are a great many estate agents in Marbella, and it isn’t hard to find ones operating in English. Here’s a few to get you started, but to find the perfect fit for you, take some time and go through a wide variety of options.
There are also freelance estate agents in Spain, who operate mainly online. If you want a different sort of approach, this could be an alternative option to consider.
The best estate agents for you are out there somewhere - but on the Costa del Sol it’s a crowded field. Here are a few words of advice on how to narrow the list down a little.
Overall, try and compare estate agents as thoroughly as you can. There are lots to choose from, after all, so there really should be at least one that you really click with.
When it comes to property, the fees can stack up. But among all the fees you’ll face, what do estate agents charge?
Service | Estate agent fee |
---|---|
Typical real estate agent commission on the Costa del Sol | 5% of the sale price The fee is usually paid by the seller.⁸ |
VAT | 21%⁶ |
Tax for the seller | 3% withholding tax on any capital gains, for non-resident. Capital gains tax is 19% of the profit of the sale.⁷ |
If you’re buying, it’s still worth clarifying with the estate agents if they’ll charge you anything. Even if not, there are of course plenty of other fees to pay, from the transfer tax to notary and lawyer fees.⁹
Here are a few extra facts regarding Marbella’s busy and glamorous property market.
You don’t buy or sell a house overnight, and there will probably be times when you’ll have to be in near constant contact with your estate agent. So you should be confident in how to deal with estate agents, when buying or selling.
When you’re laying the foundations of your relationship, make sure you ask the following.
With the stakes as high as they are in property transactions, you’ll want to make absolutely sure that your estate agent is a legitimate outfit. The best way to do this is to look at their credentials: check that they’re properly accredited and have a decent track record.
As mentioned above, they should really be regulated by API or GIPE. API accreditation (Agentes de la Propiedad Inmobiliaria) means that the agent has received official training, and it also means that their fees are controlled tightly. GIPE (La Asociación Profesional de Gestores Inmobiliarios en Promociones de Edificaciones) is an organisation that does something similar.
You can check for estate agent reviews or ratings online as well, although a professional certificate of accreditation is a bigger deal than a 5-star rating on Facebook.
All in all, it’s down to you to find your perfect estate agent match: it’ll depend on whether you’re buying or selling, already in Spain or living elsewhere, looking at luxury villas or mid-market properties, and so on. There’s no universal right answer.
But your agent will shape the whole buying or selling process, so make sure you feel comfortable with them. And even more importantly: good luck buying or selling your place in Marbella. Fingers crossed you can find the perfect deal.
Sources used:
1.https://smartxcape.com/
2.https://marbellaliving.com/
3.https://www.realista.com/
4.https://bromleyestatesmarbella.com/
5.https://www.thespanishestateagent.com/
6.https://www.terrameridiana.com/blog/3119-costs-selling-property-costa-del-sol.html
7.https://www.dmproperties.com/147-property-in-spain-expenses.html
8.https://www.marbellaforsale.com/spanish-property-faqs
9.https://www.panorama.es/articles/the-marbella-property-sellers-guide/
10.https://www.globalpropertyguide.com/Europe/spain/Price-History
11.http://www.andalucia.com/property/realestateassociations.htm
12..http://www.lpaspain.com/
All sources checked 27-May 2019
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