Educate Yourself to Make Smart Home-Buying Decisions
Don’t wait until it’s time to sign the contract to educate yourself about the intricacies of buying a home. Failing to plan properly for one of the most expensive and largest purchases you’ll ever make can lead to many regrets and problems later on.
Foreign buyers are especially vulnerable to making mistakes if they don’t educate themselves beforehand. Even if you’ve purchased one or more homes in the past, it’s a good idea to educate yourself all over again to discover changes that have taken place in the real estate market.
Choose the type the right type of property for you. This can be quite confusing when dealing with various types of “legal property”. Most buyers know the pitfalls of buying an illegal property, but do not always know what this really means. For example, you can buy a legal Nave, but it is not legal to live in full time. Your real estate agent and/or lender should be a great resource for those answers.
Execute a study of real estate in the area you like and want to purchase in. Check out whether homes are selling fast or lagging behind on the market. If the latter is true, find out why. Is it because they have been overpriced, they are not a desirable style or is there something else that you are not aware of yet?
Agents Fees, don’t get caught out with this one. Unlike in many countries where charging a buyers fee is illegal, there are still many agents who will charge you a buyers fee on top of the purchase price, This can be as much as 5% of the purchase price. These fees are often hidden and unscrupulous agents will add them into the contracts with you noticing and claiming they are part of the purchase costs, similar to purchase taxes. Never sign anything without being fully sure of what it is. This is especially true before agreeing to purchase a property, Do not sign a viewing sheet for example without knowing exactly what you are committing to. See more about this by clicking here
Active real estate agents are great resources to educate you on the home buying process and they will provide free resources to help educate you on the right moves to make in your area. Take advantage of everything you can to give yourself an advantage in the real estate market. Explore the agents YouTube channel and Social media pages to see if they regularly provide free advice to potential buyers on a whole range of matters. This indicates that they are not trying to hide anything. If a real estate agent does not provide this, then it is usually best to avoid them for buying as they are already demonstrating an unwillingness to share useful information with you.
Look closely at the obligations on any purchase contract you may sign with a real estate agent. Be aware of what you’re signing at all times when it comes to buying a home. You could be liable for commissions paid to the real estate agent even if they don’t help you with the transaction if you don’t go over the contract with a fine-tooth comb as we have mentioned above.
Interview your possible real estate agent as you would anyone who goes to work for you. Ask, “How unique are you in the real estate marketplace?” Remember, you’re learning and their job is to make the path easier by helping to educate you about the process.
Be sure to read everything carefully and get another opinion from someone you trust who knows the ins and outs of the real estate business. Some real estate agents charge fees for locating properties for you and some don’t. Get to know your real estate agent and expect the process to be seamless from the search to the day you sign the contract.
Finally, remember that planning to purchase a home is a bit like planning for the birth of a baby. Although you’ll get plenty of “advice” from others, you should be comfortable with the decisions you make at all times. Also, be very careful of believing everything you might read on the internet or in social media groups. They are often full of opinions, but rarely the true facts that relate to your personal circumstances. You will likely also only hear the “horror stories” and not the times when everything went through smoothly.
Choose your real estate agent well. The right real estate agent will lead you to your dream home. But, it’s also important to make your concerns known to your real estate agent and to educate yourself so you can make a smart decision.
Look out for our blog and video coming soon with the top 5 tips on how to choose your real estate agent in Spain
