Offer price.

This topic contains 9 replies, has 4 voices, and was last updated by  Denpots1 2 months, 3 weeks ago.

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  • #224064

    Denpots1
    Participant

    Hi,

    I’m looking at a property about 40 minutes from the coast set in the mountains, I love it, has a pool etc, nice views and is listed for circa €134,000.

    It’s been on the market a while and pending searches what offer price would you guys start at? I’m thinking of putting in a very cheeky offer but not sure of the current standard as it were.

    Thanks.

  • #224074

    entropy
    Participant

    My experience with talking to brokers is that generally bids are submitted at 10-18% off to the offers, which sometimes can shrink to 5% based on market conditions

  • #224119

    luzcadiz
    Participant

    “I love it” . .. . . . . such dangerous words!!!!! especially when looking at remote location properties – safer but more boring would be a property on an urbanization on a golf course, guaranteed to be legal.

    Love is blind so need to ensure it is legal [do not believe what the agent says and do not believe the notary nor the owners nor local expats . . . . sorry but advice based on known bad experiences]; the only way to do this is to go to the town hall. Whilst there and if you have not already been given a copy ask for the “licencia de primera occupacion”.

    does it have local water, Does it have local electrics [generators and solar power are not really enough]. Bottom line is it fully legal – and you can only trust the townhall for an honest answer.

    If you are in certain provinces such as Valencia there are still land grab laws whereby if there is an attractive plot of land and your plot is on the access road to that plot a developer would have the right to put a road through your property to access that plot and not just at the end of your garden but if necessary between your house and the pool. So need to check for any local planning applications.

    Mountainsides are great for wind farm energy . . . . another aspect to think about as these are noisy and would blight your resale value.

    On the market for a while. What was the initial asking price . . . ????? SPI will be able to tell you the m2 value for that area for resales which is another indicator.

    If on a mountainside and remote then permission to build might have been given because it was originally a cowshed. It is important to get a written assurance from the townhall that permission was given to build to the current size of the house and also to build the pool [especially in areas prone to drought such as Almeria]. All improvements need to be registered with the townhall.

    not only do the townhall have draconian powers but any improvements to the “cowshed” will increase the catastral [rates] on the property.

    Then there is the construction and drains etc which a surveyor should check for you not just for the quality of the work but the quality of the materials used especially the drains which if not of the correct material could pancake, back up and cause extensive costs.

    I think the final point is how are you financing the project. If you are looking at a euro mortgage this could get very expensive post-Brexit as the pound will weaken against the euro . . . although the euro will also go weak . . .

    I hope this helps

    Good luck.

  • #224120

    Denpots1
    Participant

    Hi,

    thanks for the comprehensive reply, firstly no mortgage required, I’ll make sure I get the paperwork from the town hall as suggested. I’ll have all checks done to make sure it’s legal etc!!

    It is worrying about the lawyers not being too reliable or trustworthy! I’ll need to do my due diligence and get a recommended lawyer.

    I’m 44 years of age with a wife and a son who is 6, my wife works for an airline so we get very cheap flights so if the property is all legal etc then we’d hopefully get good use of the villa over the next 20-30 years plus my son and family would have use of it. We’d also look at maybe renting it to bring in some revenue to cover the small costs. It’s currently rented out.

    First and foremost is the legal side of things.

    Thanks again.

    • #224121

      luzcadiz
      Participant

      Hi there
      Yes, sorry to be a bit pessimistic . . . . if being rented out then it should have a licence to rent out. Local provinces are now employing many people to trawl thru websites such as Rentalia, Airbnb and Homeaway seeking out properties for rent which do not have a licence [VFT or VTR depending on your location]. The licence is both to protect the renter to ensure a basic standard is achieved a[fixed aircon may be a requirement] and also to control in some cases the explosion of more profitable short term rentals which have the effect of pricing out long term renters . . .

      If no licence is in place I would make the current owner applying for and getting one [a visit is required by the townhall] a pre-requisite to the sale [fines of 150,000 have already been issued to Cadiz/Malaga province owners renting out without a licence].

      Best regards

      Ian

  • #224122

    Denpots1
    Participant

    Current owner rents the villa via Homeaway which was handy to see foreword bookings and rough revenue! 😄

    I’ll check if it’s licenced!

    Lots to think about, I have a long check list of requirements etc which I’ll go through.

    Thanks again

    • This reply was modified 3 months ago by  Denpots1.
  • #224124

    luzcadiz
    Participant

    The requirement is for the licence number to be displayed on the Homeaway website as well as to put a plaque somewhere prominently on the wall . . .

    Yes indeed – a fine balance between following the dream and not finding loads of expensive issues . . .
    On the rental income sadly this has to be declared less costs to the spanish authorities on a two monthly or quarterly basis and to comply with another law all your guests over the age of 16 [I think] need to provide their personal details which your agent would need to supply to the local guardia [but this can be done by email].

    Best regards

    Ian.

  • #224125

    Denpots1
    Participant

    Ian,

    Thanks for all the advice, appreciate it.

    Cheers.

    Steve.

  • #224133

    SurveySpain
    Participant

    Steve, that’s all good advice from luzcadiz. If it has a First Occupation Licence and a Rental Licence, all will be well. If it hasn’t, beware. A good lawyer is essential. Doesn’t have to be in the area, in fact might be better not as then there is less likelihood of them siding with the seller or agent. You need somebody to ask the questions you don’t know to ask! Only doubt is the comment regarding golf courses. Not all urbanisations/houses beside them are legal. Also remember the seller could have added on illegal buildings.
    Don’t be frightened off, but do just let your head rule you and not emotion. Also, get a survey done of the property by an independent surveyor. RICS is best and they are available. The lawyer can have the paperwork 100% perfect, but then its discovered that the building is not correctly described or it has faults that will be costly to repair. The costs of the survey can be repaid many times by you then having a list of items to negotiate the asking price with the seller. If the seller won’t see reason, maybe that house is not for you and there are plenty of others available.

  • #224435

    Denpots1
    Participant

    Thanks for all the advice guys! Appreciate it.

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