Buying Your Home
Discover how to buy your home in Javea and in the Costa Blanca step by step.
Choosing an Agent
No doubt you would have searched the internet for many months before arriving in Javea to find your dream property. Choosing an agent to help you in your search is your first important decision. There are many agents in the area, from established agents with a prominent office, like Javea Home Finders, to property finders who are working from home and new inexperienced agents open regularly. Choosing Javea Home Finders will give you peace of mind that you are with an agent that has a solid base and reputation, has your best interests at heart and has the experience to guide you through the whole buying process.
Agents work differently here to the UK, they are able to collaborate between one another, so once you choose an agent they can register you with other agents to ensure you not only get to view properties on your chosen agent’s books, but also any properties that are listed in the area with other agents.
If you work with one agent it makes viewings so much easier for you as they will organise everything for you, if you see a property on the internet or in a shop window, just tell them about it and they will speak to other agents and organise all your viewings for you. You have one contact and someone who really gets to know what you are looking for. You won´t be disappointed if you choose Javea Home Finders.
Your Purchase Budget
It is important that you know your budget. There are three main areas to consider.
- How much can you afford to spend on a property?
- Do you need finance and how much can you borrow?
- Be aware of Spanish taxes and fees.
Arranging a Mortgage
If you need a mortgage to purchase a property, then it’s recommended to get a provisional agreement before you start viewing properties. This ensures you know exactly how much you can borrow and what your purchase budget is. Javea Home Finders have many contacts with banks and brokers and can help find you the best mortgage deal.
Spanish taxes and fees
When buying a resale property there is a Transfer Tax of 10% charged by the Spanish Government. Other fees will be charged for the Notary and Land Registry, these fees are based on a sliding scale depending on the price of the property (about 0.5% for both). Your Lawyers’ fees (approx 0.5%) will also be payable at completion. It is recommended to budget between 12% to 13%. If you buy with a mortgage there are additional set-up costs and fees associated with the mortgage deeds which will be on top of the original purchase price (your mortgage provider will advise you of these costs).
Now you know your budget you can start to view properties. You would have seen lots of potential properties on the internet and if you have chosen Javea Home Finders we would have got to know you and your requirements so can help guide you to the best property or location that suits your needs.
Once we have agreed a list of properties to view we will agree a date to start viewings. We can collect you from your accommodation or meet at our office. We will always endeavour to find you a good selection of properties to view, this may be over a period of a few days, or if you are pushed for time we can try and fit as many in as possible in one day.
Remember we want to find you your dream property, giving us honest feed back on viewings is essential. Knowing what you like and dislike will help us to find that perfect property for you.
Agreeing the price on the dream home
As with all house purchasing worldwide you are expected to make an offer, this could be the asking price or below. Javea Home Finders has extensive experience in negotiating a purchase price with both buyers and sellers. We are renown for brokering a deal that leaves both parties happy.
Making a deposit
Once you have agreed a price, it is normal practice to make a reservation deposit (usually between 3,000€ to 5,000€). At this point both parties will sign a reservation contract giving specific dates (usually for a period of 10 to 14 days) for the next step in the process and the property is taken off the market whilst preliminary searches are being done and purchase contracts drawn up. If any problems are found with the searches then this deposit is returnable, but not if you simply change your mind.
You will need an NIE to buy a property. This is a foreigner’s fiscal registration number, similar to a UK national insurance number. The sooner you get this the better. There can be a waiting list for appointments and especially during the summer months this can take several weeks. Javea Home Finders can assist with this.
You will need legal representation when buying a property in Spain. We recommend that all our clients appoint an independent Lawyer (Abogado). This Lawyer will carry out legal searches, ensuring the property has all licences and no debts against it. There are many excellent English-speaking Spanish Lawyers in the area for which we can provide contact details.
At the agreed time within the reservation contract and if all provisional searches are clear then a purchase contract is drawn up and 10% of the purchase price is paid (less the 3k or 5k already paid) and a completion date agreed.
From an offer being accepted to completion usually takes about 6 weeks. On the agreed completion date Javea Home Finders and your lawyer as well as the sellers and their lawyer will meet at the Notary’s office to sign the purchase deeds and complete the sale. You will be given keys to your new home!