How can a buyer's agent help you buy real estate in Spain?

We met up with Ronan Baird, a buyer’s agent covering Costa Del Sol in Spain, to help explain the concept. Ronan is a lawyer from Ireland who relocated to Spain earlier this year. He is now helping others like himself achieve their dream of a home in the sun. 

Ronan, what is a Buyer's Agent?

A buyer's agent, or property finder represents the best interests of the buyer in a real estate transaction. Unlike the traditional real estate agent, who represents the seller, a buyer's agent's sole focus is on getting the best deal for the buyer and helping them throughout the purchasing process.

It is about giving the client the best possible advice in relation to the location the client is looking at, then the individual properties, the estimated additional costs of purchasing, the actual purchase process, and finally once a property that the client loves is found and they want to try to purchase it discussing if the price being sought for the property is fair and advising on a realistic offer that could be submitted.

Then making the offer for the client with a view to securing the property for them.

Who should use a buyer's agent?

Spain's real estate market can be complex and varied. A local buyer's agent will have in-depth knowledge of the market trends, prices, and hidden gems that might not be evident to outsiders.

A buyer’s agent is also 100% on your side. Whereas the seller’s real estate agent’s sole interest is in selling you their properties, as a buyer's agent, I help you negotiate the best property deal from across the whole market.

We handle the negotiations and offers for you, taking away any of that stress.

There’s also a lot of work when it comes to arranging the transaction. From property viewings to handling the paperwork, a buyer's agent will simplify the buying process, making it smooth and hassle-free. I’m looking forward to working with Homevest to help my clients find the best mortgages.

We are also very hands-on in our approach and remain in contact with the client throughout the buying process until they get the keys to their new property.

Language barriers or cultural misunderstandings can also cause miscommunication. My business partner and I speak Spanish, English, French and Irish, which ensures that your interests are clearly communicated and understood.

How much does it cost to use a buyer’s agent?

I never charge my clients anything. Instead, I get paid a share of the seller agent’s commission. Some buyer’s agents might charge you, but in my experience, that’s not the best deal for you.

We are committed to providing a first-class service and this is why we request exclusive collaboration from our clients.  By the client working solely with us, the client benefits from having a single point of contact as well as eliminating the confusion that may occur if multiple agents are involved. 

As a buyer’s agent, we have access to all the properties on the market.

What should foreign buyers consider when selecting a buyer’s agent?

It makes sense to look for agents with a proven track record in the type of property you're interested in and in the specific region of Spain. In my case, I focus on properties in Costa Del Sol where I am based.

I have traveled here extensively for a number of years and am very familiar with the area and properties and in fact, lived here a number of years ago before moving out here permanently.  My business partner has been located here for over 8 years and again is fully conversant with the area and the properties that are for sale.

I have given you a brief synopsis of the services we provide in a PDF document setting out in more detail what we can offer and I would be delighted if you would share it with any prospective clients.

How does the buying process work with a buyer's agent?

We first have a phone call to discuss your property requirements, budget, and any specific preferences. If you need financing, now is usually a good time to determine the budget too, which we figure out with the help of the Homevest platform.

We source the properties once we know the dates that the clients will actually be here, sending listings too far in advance doesn’t really work as the property may be sold by the time the client arrives.  Conducting our search just prior to the arrival of the client avoids disappointment as the market is fast-moving.

Once you are ready to come for a visit, I will arrange property viewings and accompany you, providing insights and advice. We’ll grab a coffee in between and discuss the properties we’ve seen.

Once you've selected a property, I’ll help you with negotiating the price. We’ll also get you started, get mortgage offers from banks, and make sure the banks compete hard to give you the best deal.

We can explain all the legalities and the various costs, ensuring a smooth transfer of ownership. We would insist that you have a lawyer review your contract.  They will also assist you in obtaining your NIE Number and opening a bank account.

If you don’t have a lawyer we can provide some recommendations that you could choose from.

Why did you decide to work with Homevest?

We want to provide the most comprehensive service as property finders. In that regard, we want to be able to deal with any query a client has.  Whereas our specialty is finding the property that the client wants, we are not specialists in mortgage advice and we needed to be able to recommend a company that could provide this service to the client that we could trust.

We did extensive research before approaching Homevest with a view to collaborating and were very happy with what we found out about the company.

We also felt the idea of a cross-border mortgage advisor was very innovative and that also appealed to us.

How long does it take to buy a property on Costa del Sol?

If the New Development is off-plan, the buying process is as follows:

1. Reservation Fees: The reservation fees range between 6,000€ to 12,000€, which is required to take the property off the market.
2. Private Purchase Contract: Approximately 3-4 weeks later, we will need to sign the private purchase contract. At this stage, you will be required to pay 30% of the total amount minus the reservation fees.
3. Completion of Development: Once the development is complete, you will sign the deed and be responsible for paying the remaining 70% of the amount.

The buying process for Resales is as follows:

1. Reservation Fees: The reservation fees range between 6,000€ to 12,000€, which is required to take the property off the market.
2. Private Purchase Contract: Approximately 2-3 weeks later, we will need to sign the private purchase contract. At this stage, you will be required to pay 10% of the total amount minus the reservation fees.
3. Deed Signing and Key Handover: Around one month after signing the private purchase contract, you will sign the deed and receive the keys. At this stage, you will be responsible for paying the remaining 90% of the amount.

How much does it cost to buy a property on the Costa del Sol

For a New Development, the taxes are as follows:

• 10% taxes to Spain
• 1.2% taxes to the Andalucia state
• 1% Lawyer's fees
• 1% Notary's fees (Note: It may be lower)
• 1% Bank's fees if a loan is required

For Resales, the taxes are as follows:

• 7% transfer taxes
• 1% Lawyer's fees
• 1% Notary's fees (Note: It may be lower)
• 1% Bank's fees if a loan is required

Conclusion

Buying property in Spain can be a rewarding experience, both financially and personally. However, it's essential to have the right guidance. By enlisting the services of a buyer's agent, you can ensure that you navigate the Spanish real estate market with ease, confidence, and the assurance of getting the best deal.

If you are looking for a property in Costa Del Sol, Ronan can be contacted by phone at +34 676 790 179  or by email at [email protected].