A Practical Guide to Buying a Property in Valencia
At Found Valencia Real Estate, we understand that buying a property in a new city or country can be an overwhelming process. That's why we've put together this comprehensive guide to help you navigate the exciting world of Valencia's real estate market.
Follow our step-by-step process to ensure a smooth and successful property purchase.
Table of Contents
Understanding the Valencia Property Market
Valencia is a vibrant city on Spain's east coast, known for its rich history, stunning architecture, and year-round sunshine. The city's property market has been growing steadily, attracting international buyers and investors alike. Before diving into the property search, it's essential to familiarize yourself with the local market and its intricacies.
Key factors to consider:
- Property Types: Valencia offers a diverse range of property types, from modern apartments and lofts to traditional townhouses and luxury villas. Consider your lifestyle, budget, and personal preferences when deciding on the ideal property type for you.
- Location: Valencia is divided into several districts, each with its unique character and charm. From the bustling city center to the tranquil suburbs, it's essential to research different neighborhoods and determine the best fit for your needs.
- Market Trends: Keep an eye on property prices, recent sales, and local development projects to understand the direction of the market. This information will help you make an informed decision and identify potential investment opportunities.
- Talk to us, Conor WIlde company founder of Found Valencia welcomes video or telephone calls to discuss the current status of the market, understanding up and coming areas, local legislation and the do's and don'ts. Here is a link to Conor´s calendar for potential buyers to use.
Finding the Right Property
At Found Valencia we show our clients in great detail the areas first, if its city or a surrounding town of Valencia , its fundamental the area suits, forget the views and beautiful homes, look at services, examples such as public and private medical services, hospitals, education facilities, amenities for day to day living, public transport etc. REMEMBER IN VALENCIA YOU ARE BUYING INTO A LIFESTYLE so let get the area perfect to your required lifestyle.
Then we show you in detail the homes, you will meet the sellers as we go and we encourage all our clients to ask whenever questions you may have.
Once you have a clear understanding of the Valencia areas and property market, it's time to begin your search. At Found Valencia Real Estate, we offer a personalized approach to help you find the perfect property.
Here's how we can help:
- Property Search: We provide a curated selection of properties that match your criteria, saving you time and effort. Our extensive knowledge of the local market ensures that we present you with the best options available.
- Property Viewing: We arrange property viewings at your convenience, allowing you to fully experience each property and its surroundings. Our professional agents will be on hand to answer any questions you may have and provide valuable insights.
- Expert Advice: With years of experience in the Valencia property market, we're here to guide you through every step of the process.
- We understand how property is built , so our “Know How” is at your disposal. What to look out for and what aspects of a home or area are an advantage or disadvantage.
- Remember, To fully understand the true value of your budget, always start looking at properties under your budget, compare and ask WHY.
Financial Preparation
Before making an offer on a property, it's crucial to have your finances in order. Take the time to evaluate your financial situation and determine a realistic budget for your property purchase.
Key financial steps:
- Mortgage Pre-approval: If you plan to finance your property purchase with a mortgage, it's a good idea to get pre-approved by a Spanish bank or a mortgage broker. This will give you an accurate idea of your borrowing capacity and show sellers that you're a serious buyer.
- Proof of Funds: Be prepared to provide proof of funds to demonstrate your financial capability. This may include bank statements, investment portfolios, or a letter from your mortgage provider.
- Additional Costs: Don't forget to factor in additional costs, such as taxes, legal fees, and property maintenance. These expenses can add up, so it's essential to include them in your budget planning.
Your 3 key people in Valencia for your property project need to be
A respected established real estate agent or realtor, with the resources, experience and market knowledge to assess you correctly and to have the aftersale services to assist your and your family get completely settled after the acquisition of a home in Valencia.
Your independent lawyer or attorney, Registered in the college of lawyers and with exceptional knowledge of the local areas you wish to purchase and a full understanding of local legislation to study and confirm the exact status of the property.
A building surveyor, Found Valencia Property highly recommend that all clients use the independent services of a qualified surveyor, a professional who can identify or detect defects, a full survey is money very well spent and a vitally important part of your purchasing process.
Legal Matters and Due Diligence
When purchasing a property in Valencia, it's essential to ensure that all legal matters are in order and that you conduct thorough due diligence. This step is critical to protect your investment and avoid any potential pitfalls.
Important legal considerations:
- Hire a Lawyer: Engaging a local lawyer with vast experience in Spanish property law is highly recommended. They will help you navigate the legal process, review contracts, and ensure that all necessary paperwork is in order.
- Land Registry Check: Your lawyer should conduct a check with the Spanish Land Registry to confirm the property's ownership, legal boundaries, and any outstanding debts or liens.
- Building Permits and Compliance: Ensure that the property has all necessary building permits and complies with local zoning regulations. This is particularly important when purchasing older properties or those that have been renovated.
- No monies sould change hands between buyer and seller until a full survey and complete due diligence have been carried out.
Making an Offer and Closing the Deal
Once you've found the perfect property and a agreed purchasing price has been established to suit your budget
Key steps to follow:
- Making an Offer: With the help of your real estate agent and lawyer, submit a written offer to the seller. This should include your proposed purchase price, timescales,inventory,and of course subject to mortgage approval, due diligence and survey approval.
- Purchase Agreement: Once a seller accepts your offer, your lawyer can prepare a reservation contract. The reservation fee agreed is sent to the lawyer or notary account (at this point the seller has agreed to take the property off the open market and won't allow any more viewings of the home)(these monies are refundable 100% to the buyer should problems or discrepancies arise) until due diligence and surveyors reports come in and then and only then you should move to the next contract.
- Contrato de Arras (This contract is bound by spanish civil code) outlining the terms of the sale in great detail. Both parties will sign the agreement and the buyer will typically pay a deposit (usually 10% of the purchase price).This includes monies sent from the reservation contract.
- Notary Appointment: The final step is to sign the deed of sale in the presence of a Spanish notary. The notary's role is to verify the identities of both parties, ensure the proper transfer of funds, and register the property transfer with the Land Registry.
- Payment and Transfer of Ownership: Upon signing the deed, the buyer will pay the remaining balance of the purchase price. The notary will then submit the deed to the Land Registry, officially transferring the property's ownership to the buyer.
Post-Purchase Responsibilities
Congratulations! You're now the proud owner of a property in Valencia. However, there are a few post-purchase responsibilities to take care of:
Responsibilities :
- Property Taxes: As a property owner in Spain, you'll be responsible for paying annual property taxes, including the Impuesto sobre Bienes Inmuebles (IBI) and the Impuesto sobre la Renta de No Residentes (IRNR) for non-residents.
- Utilities and Maintenance: Don't forget to set up utility accounts (water, electricity, gas, etc.) in your name and arrange for property maintenance, including cleaning, gardening, and any necessary repairs if needed.
- Enjoy Your New Home: Finally, settle in and enjoy your new home in the beautiful city of Valencia. Embrace the local culture, cuisine, and lifestyle, and create lasting memories in your Spanish haven.
- No monies sould change hands between buyer and seller until a full survey and complete due diligence have been carried out.
At Found Valencia Property we encourage our clients to use our resources and offices are your base, Even if your enquiry is not property related, come in, we are here to help, yo need to find school places for your children, want to buy a car, need local advice even if its not property related.
We are genuinely here to assist you so welcome to the Found Valencia Property experience.
Conor Wilde - Founder & MD
I am available to take video calls or phone calls to explain the correct processes to follow when purchasing real estate in & around Valencia Spain.