Yes, I’ve seen houses advertised on papers stuck on lampposts, mainly in the cities. Something I will utilise if I do manage to get my finances together for my intended Valencian property (or elsewhere).
Do you think that method would normally put off prospective British buyers though? Seems a good way to find places in the area you’re looking at. Also, from your tale, it may also be worth asking the bank manager if they know of suitable properties for sale – although I can see big drawbacks on that too.
In Madrid it is usually the agents who advertise on lampposts