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About Estate Agents and Buying A Property in Spain

The process of buying and selling a house in Spain is different than the process in the UK. In many ways it is a lot easier and quicker, but there are a few pitfalls that must be avoided. The first thing you need to realise is that the price of a house is set by the vendor, not by the estate agent. The estate agent then prices the property including their commission, which can vary dramatically.

In most regions on the Spanish coastline, the dogma amongst the developers and sales houses is 'sell, sell, sell' and there are many tactics employed by these companies to get you to sign on the dotted line as fast as they can. Most know all too well that there are a great many houses for sale and they can't risk letting you go to meet competing sales houses.

Javea is not quite as bad as other parts of Spain, but you still need to be careful. You also need to realise that deposits here tend to go to the agency and some will view this as part of the payment for their 'services'. So don't part with any money quickly. If you find a property you want to buy, it is often wise to take down the details and give these to your solicitors. They will then verify that the process being used by the estate agent is 'kosher' and appropriate. Also remember that the sales staff in estate agents are mostly working on a commission only basis and that runs the risk of the member of staff walking off with your deposit if they are a casual worker, or the risk that nobody will follow up the sales process, as their incentive for doing any more work has been removed.

Agencies here often are competing for a sale on the same property (multi-agency). That can make them very aggressive and secretive. I once walked into an agency to enquire as to where a particular property was located and the owner immediately ordered the girl attending me not to give me any idea. He didn't realise that I spoke fluent Spanish!

Property Debts and 'Land Grabs'

It is also wise to remember that 'what you see' is NOT always 'what you get'. Firstly, because in Spain, if a house owner has any debts, then these can pass on to the new owner of the house. So it is essential to ensure your solicitor fully researches any debt claims on the property. Secondly, throughout the Costa Blanca there have been a lot of problems with 'land grabs'. This is when a property developer puts in a planning application to develop land that belongs to someone else and even ends up charging the original land owner for the privildge!. 'But that can't be' you are thinking. Well unfortuantely it is the case. It would take a couple of pages to explain fully as to why, but here it is suffice to say that it has happened extensively on the Costa Blanca. The good news is that Javea itself has been 'relatively' unscathed, but I'm sad to say not totally. More good news is that it is perfectly possible to avoid getting into such a problem, but you and your solicitor need to do your homework. The simple message then being 'don't rush' into putting down deposits until you are certain about the property.

It's Not Difficult to Get it Right

Once you know what to look out for and understand the correct process to follow, the buying process is relatively painless. There are some excellent books available by English authors on buying a home in Spain and any of these will be very helpful. To our knowledge most British expats have been very happy with their house purchases in Javea and the sharp rise in property prices throughout Javea gives evidence of the town's continued appeal and desireability. For the most part then, you will find the Estate Agents here helpful and professional, but we thought you ought to be aware of the key pitfalls to watch out for up front.