1. Understand the differences between the UK and Spanish property market
In the UK it is fairly standard procedure for a vendor to listen to an offer of around 95 per cent of the asking price. It’s all fairly predictable and a given that even in a good market the asking price is rarely the ultimate sale price, but equally rarely is it under 90% of the asking price. Property prices in Spain are in general far less predictable. Some vendors price their properties with the expectation of ultimately selling for several thousands of Euros less, some give all their discounts (sometimes as much as 30-35%) upfront and show the reductions openly to viewers of their property. Equally it is perhaps surprisingly common for those selling property in the first line or very close to the sea not to sell for a Euro under the asking price. The one size fits all UK style strategy of negotiating a 5-10% discount is not necessarily going to be the key to the best deal on your Spanish property.
2. Be Informed
Find out how long the property has been on the market and more importantly how long at the current price. A property that has been on the market for a year at the same price is probably overpriced. On the other hand a property that has been on the market for a year and has just been reduced by 30% could well be bargain waiting to be snapped up. Your Agent/Property Advisor should be well placed to know what price a builder is likely to accept. Use this knowledge to your advantage so you can rule out viewing any properties that are not going to fall within your budget.
3. Sell yourself
Owning a property in the sun is something almost everyone has considered at some point. However tough the market is, the dream of a place in the sun is as popular if not increasingly more popular today as it ever has been. Vendors and in particular builders are very much used to seeing a procession of people viewing their properties before they are in a position to buy. Many make offers and try to negotiate a purchase price long before they have arranged finances or have the cash in the bank. Vendors simply do not take this type of buyer seriously and tend not to waste much time considering the empty offers, even if they do remain polite and courteous so as not to upset the viewer on the off chance they may return one day as a buyer.
Present yourself to the seller as someone who has all their finances in place (if only an agreement in principal from the bank) or has the necessary money in the bank, be clear that you are ready to seal a deal while you are in Spain, re assure the seller that you are reliable, ready to complete quickly and you make yourself a very difficult prospect to walk away from.
4. Get your goodies
Some builders even now are reluctant to publicly reduce their prices. They will often, on the other hand, be responsive to a suggestion that they include gifts in the sale such as furniture, air conditioning or even a private pool. The value of these gifts can easily add up to a sizeable discount and sometimes importantly for the developer,the price that the house sells for will still be the advertised price.
5. Know your limits
Before starting any negotiation, decide on the maximum price you will pay and don’t move from it. This is a decision to make before getting caught up in the emotion of the moment. Don’t advise the seller of your price limit until you really have got to that point. Once you have reached your bottom line, make it clear you can’t go any higher and this is your final offer. This will save you lots of time in the event of your offer not being accepted and will allow you move on to other properties.
6. Make it clear you have other options
It’s a good idea to mention that you are considering other properties. Combining this technique with other the tips can often give you an advantage when negotiating with builders/sellers.
Your MASA Property Advisor will help you put these tips in action and negotiate with builders/sellers on your behalf, under your instruction. If you are buying through MASA you will benefit from a ‘Lowest Price Guarantee’, so you can be sure that the builder is not selling the property cheaper anywhere else.
