We saved a client 5,000 euro this week!
Do you want to save money buying a home in Spain?
Here is a behind the curtain look at how we saved a client of ours thousands.
Thanks to Mr. G For allow us to analyse his example.
So its a resale on the books of another agent at 110,000 euro, a second agent advertised at 107,000 euro- Our client was confused. He had up to 120,000 to spend, wanted a little place for the family with a bit of rental return too. The house was fine but Mr. G didn’t know who to believe about the price. Both agents said that 100,000 would get the house off the books, absolute bottom price.(this is a good value for money townhouse in Torrevieja) One of the agents offered to do the legal work themselves- an instant red flag!
This is the background as to how he ended up on the Spanishhomesonline website.
G. wanted to pay the asking price so as not to lose the house. We offered 97,000 on his behalf instead.
We are good negotiators, we simply told the seller, the facts:
Cash buyer, going back to Ireland in three days and if he does not buy this house, he´ll get another for his price. Ok, we gambled a bit but everyone won- Our buyer got the house he wanted below market value, the seller got a sweet, easy sale, while they can make serious money on their euro to Sterling transfer pre Brexit. As it turns out we saved the seller 2,000 euro too!
So how exactly did we save G. money:
COSTS OF PROPERTY
PROPERTY PRICE 100.000,00 €
(typically, there is a minimum of 5% comm on real estate in Spain- ie 5,000 for SHOL (spanishhomesonline). Our client has many contacts back home and agreed to publish so many good things about us on his Facebook, linkedin and other social media. It’s great advertising for us so we agree to give him back 1,000 euro for furniture. We dont work for free and still made a 4,000 commision, we think we offer great value to our buyers however! The other agent was charging 7.5% and our buyer would never have found out! We decided “lets give 1,000 back so our comm is 4,000, plus we get the owner down 3,000. Price is now 96,000, (1)saved 4,000.
DEEDS PRICE 100.000,00 € (reduced to 97,000)
AJD/ITP (TAX) 10% 10.000,00 € (9,700, (2) saved 300)
Notary + Registry (approx.) 1.500,00 €
Title deeds Insurance (20 years cover) 300,00 € OPTIONAL
Spanish Solutions (our lawyer) fees (VAT incl) Normally 1.573,00 € Discount to the client price is 1,073 (3) saving 500 euro
TOTAL 108,573,00 €
TOTAL COST OF PROPERTY: 108,573 €
MORTGAGE COSTS (G. Didn’t get a mortgage but we would have saved him thousands here)
Notary + Registry (approx.) 0,00 €
Tax (2,3% approx) 0,00 €
Bank Setting up fee 2,00% 0,00 €
House insurance 0,00 €
Valuation (approx.) 0,00 €
Life insurance 0,00 €
TOTAL 0,00 €
Wills (181,5€/person)VAT INCL 21% 2 363,00 €
NIEs (130€/person)VAT INCL 21% 2 260,00 €
Power of Attorney (181,5€) VAT INCL 21% 1 181,50 €
Compulsas / notarised copies (10€ each) 2 20,00 €
TOTAL 824,50 € We can knock (4) 420 off here.
TOTAL INCLUDING EXTRAS: 108.977,50 €
Total savings (5) 5,220 euro
Total saved by our client due to buying his Spanish property from us:
This is all on top of our terrific service and happy helpful staff. G. was buying without transferring sterling or Kroner to Euro- had he done that we would have saved him thousands more. Also, he didn’t need finance – another are where we save our buyers thousands.
Do you want to know how you can save 5,000 euro buying your property in Spain?
Get in touch with Spanish homes online today!