Buying a Spanish property

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This topic contains 2 replies, has 3 voices, and was last updated by Profile photo of Anonymous Anonymous 9 years ago.

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  • #53490
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi

    Can anyone advise

    I’ve recently been offered an apartment in spain and the owner has asked for 125,000 euros. However the property has been valued by the bank at 173,000 euros with an insurance value of 75,000 euros.

    Assuming that the owner knows the valuation price why would he be willing to accept 125,000. Also the fees involved with the goverment etc are they based on the valuation or sales price!

    If anyone can help i’d be most grateful

    Thanks Lyndon

  • #76337
    Profile photo of Inez
    Inez
    Participant

    Bank vals are based on a euro per square metre basis, dependant on location, build quality and not much else! Various variables due to interior size, terrace size remainder of garden plot size, if there is a garage and its size, sotreroom….I could go on and on. However, market forces are such that people have to sell for less than bank val, so it becomes irrelevant. Many are selling under the bank val now.

    So, the purchase price is 125k and your costs are based on that, ie transfer/purchase tax of 7% is based on 125k etc.

    Your lawyer can and should advise you further – you are paying him for that!

  • #76375
    Profile photo of Anonymous
    Anonymous
    Participant

    If you are felling generous why not offer to pay him more…..!!!

    On the insurance valuation, thats the re-build cost, remember if it falls down you still own the land which has a value and the house will be re-built.

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