Author: Steven

How to buy Real Estate in Barcelona step by step

How to buy real estate in Barcelona step by step

Published: 12 November of 2020

Whether you are looking at purchasing a property for your own private use or as part of an investment strategy, Barcelona Flat Hunter is here to ease the whole process. You will find in this section a detailed description of each of the steps required to buy real estate in Barcelona and how we will make it a hassle-free experience.

step 1. Project Definition

EVERY PROJECT IS UNIQUE, BUT THEY ALL START WITH ONE THING: WE WANT TO KNOW EVERYTHING. If you haven’t done so yet, feel free to fill out our Property Search Form, for a free consultation with one of our Barcelona Flat Hunter experts.

 

This consultation would allow to:

1. Validate your search: your expectations & budget versus real estate market in Barcelona.

2. Define the extent of the support needed: at Barcelona Flat Hunter we do not believe in “one package suits everyone”. Each client is unique and as such should only be charged for the services he actually needs. Whether you wish to get a full support throughout from the search to the purchase, or have already identified the potential property but wish to be assisted moving further, Barcelona Flat Hunter places its expertise to your service.

3. Answer your questions: from general explanation on the purchasing & financing process to the market characteristics, real estate prices in Barcelona and trends, we are here to answer your questions.

4. Validate your financial plan: once the ideal property has been defined we will review together the financial structure of your future purchase. Should financing be needed, banks/brookers will be approached to ensure you get the adequate financing.

GOOD TO KNOW >>> Making an offer on a Spanish property is usually done in writing & it requires in most cases a down payment of 1% of the offered price, This written offer is then presented to the seller so that they can study it and respond. If the offer is accepted, the 1% is considered as a first down payment, if it is refused then the amount is refunded entirely by the seller agency. Lastly, if your offer is accepted but you change your mind, you would lose this deposit, it is thus essential to ensure all aspects of the future purchase are addressed in writting within the offer document.

Step 2. Flat Hunting

Picture on hand, we do all the groundwork, from sharing your search with our extensive network to monitoring proporties published online and going through pre-visit, we hunt on your behalf for your dream property. Upon identifying and visiting properties that match your requirements, a visit report with pictures & video will be sent to you together with an assessment of the property real value based on real estate prices in Barcelona, state of maintenance of the property and specifics of the building. Renovation estimated budget and rental value can as well be provided upon demand to have a full potential return on investment estimate. Visits of selected apartments are then  organized to fit your schedule.

barcelona balcony

STEP 3. NEGOTIATION

Once we found the gem you were looking for, we will assist you to make an offer in writing. This first step is essential as it not only states the amount you are offering for the property but as well the timeline within which you wish to complete the transaction and any conditions to be met by each side to move forward.

 

At Barcelona Flat Hunter, client interest comes first. As such, prior making an offer, all aspects of the property will be cross checked to ensure that what was announced is correct and that there are no unpleasant surprises further down the road*.

Some of the verifications we carry out on your behalf:

1 – Property registry to check the specific of the property, the owner identity & its legal capacity and whether there are any limitations or debts on the property

2 – Land registry to ensure it is in adequation with the specifics of the property

3 – Urban planning to check that the property is not affected by any restrictions & is in adequation with the current  municipal urban plan

3 – Habitability Certificates & energetic certificate

4 – Community of owners’ dynamic, decisions when it comes to any upcoming repairs or upgrades in the building & financial state

5 – Touristic appartment(s) (with licence) operating in the building

6 – Technical Building Inspection passed or not & with or without aptitud certificate obtained. Any pending issue will be reviewed.

 

The price negotation is as well an esencial part of this step. For any given property we will assess the real value of the property, collect background information to best understand the circumstances of the sale (reason & origin of the property, time on the market, inicial published price…) and then determine a strategy to secure the property at the best acceptable price.

 

*Whenever any of the above points cannot be checked prior to signing the offer, Barcelona Flat Hunter will condition your offer to these points to ensure your interest are protected at all time.

STEP 4. Earnest Money Agreement / "Contrato de Arras"

The seller has accepted your offer and all checks have been conducted, as such both sides are now ready to sign the earnest money agreement also usually referred to as “Contrato de Arras”. This legally binding contract is essential as it states all the specifics of the sale & purchase as well as conditions to be met for the purchase to take place (that would allow the buyer to pull out without loosing his deposit). A deposit of a minimum of 10% of the property value is required and you can either be present for the signature or mandate us or another person of your choice as your representative to sign on your behalf (in such case a power of attorney would need to be done in Barcelona during your first visit). The terms of this agreement will be carefully drafted and a courtesy translation to English will be provided for your reference.

GOOD TO KNOW >>> In Spain, under the earnest money agreement (referred to as “Contrato de Arras”), in the event of the buyer backing out of the agreement with no justified reasons (keeping in mind that these have to be specified in the agreement), the full amount of the deposit will be lost. If it is the seller who changed his mind, he must pay the buyer twice the amount of the deposit that was paid when the Arras was signed. Both sides’ interests are thus protected.

STEP 5. Formalities

The moment the arras contract is signed and if you have not already done so, the following steps will need to take place right away:

1– A spanish bank account will need to be opened

2– The NIE (ID number for foreigners) requested

3– Should you be requesting a loan the assessment of the property value (called “tasación”) will need to be requested. This report will then be sent to the selected bank to move forward with the financing process. Do keep in mind that in Spain, banks lend money based on the lowest amount between the purchase price and the assessed price.

Barcelona Flat Hunter will be able to assist you for all three and ease this part of the process too.

 

Once the bank account open, you will need to transfer the amount needed for the purchase to this account. On signature day the payment to the seller will be either done by certified bank checks or transfer.

Barcelona Flat Hunter will as well ensure that the notary of your choice receives all requested documents from the seller side prior to the day of the signature. These very same documents will be explained to you so that everything is clear prior to the signature day.

STEP 6. Deed Signature

All original support documents provided by the seller will be handed over to the notary and on your side upon presenting the original ID & NIE and the certified bank cheques/transfer order you will be all set. Once the “escritura” signed, the seller will hand over the key of the property to you and the notary will prepare a copy of the signed agreement called “copia simple”. The original signed contract will be kept by the notary who will then carry forward through the “gestoria” all remaining steps (taxes, registry) upon receiving a provision of funds from your side (approx 11% of the amount of the purchase).

STEP 7. Post Purchase Support

The support from Barcelona Flat Hunter includes a post signature assistance that includes ensuring all utilities contracts are changed to your name & payments set to your account and your details provided to the building management company.

Wish to take a few steps further? Barcelona Flat Hunter can as well be your eyes on the ground for the renovation/decoration of your newly purchased property and assist with the furnishing/home staging as well as rent it out when you are away.

Validate your real estate project feasibility and get a free consultation with one of our experts

Learn more

Barcelona Flat Hunter, we make your purchase of real estate a hassle-free reality

Barcelona Flat Hunter, we make you purchase of Real Estate a Hassle-Free Reality

Published: 16 September of 2020

As a Real Estate buyer agency in Barcelona, our objectives are to save you time, money, hassle, and to protect your interest at all times.

Purchasing a real estate in Barcelona is a dream and a life goal for many people all around the globe, and when it comes to Europe, Barcelona is one of the favourite spots for investors as well as couples and families who seek its vibrant lifestyle, pleasant climate, quality healthcare along with attractive real estate prices and much more.

The idea of having your very own flat in Barcelona is very attractive...

Unfortunately, the whole acquisition process can be exhausting and way more complicated than anticipated including for Spanish speakers. Part of the complexity has to do on one side with regulations that do not protect buyers but instead shift the responsibility on the latest to carry on all the checks, and on the other side with the fact that real estate agents are in most cases solely paid by the seller leading to a clear conflict of interest. The market is as well extremely segmented with lots of small real estate agencies fighting over the same properties, and it often comes down to who will close the deal the fastest independently of whether the basics checks on the real estate they are selling have been carried on or not.

It is this reality combined with a strong will to offer a much-needed tailor-made support to buyers throughout the whole process, that led to the funding of Barcelona Flat Hunter, a 100% buyer oriented real estate agency based in Barcelona. We do not sell properties on the side nor have a collaboration agreement with real estate agencies selling properties, our
interest is 100% aligned with yours.

The time factor is essential when searching for the perfect property for sale in Barcelona. You do want to get there first and carry on an exhaustive monitoring of the market but often lack time and after 30+ visits motivation too… Our clients on average visit less than 5 properties before moving forward with an offer. The secret? We are the one carrying on these 30+ visits on your behalf, selecting the ones that truly match your search, and carrying on all basic checks. You then get to review the pre-visit report and with all the information in hand decide whether you wish to go ahead or not with a visit.  Saving you time is a big part of our services.

The money factor is another essential part of our added value. Our services do come at a cost for the buyer but in most cases end up saving you money. The explanation is simple, with our knowledge of the market, we do know how to properly assess the value of a property and lead a good negotiation. Our clients end up paying the right price for the assets they purchase with our support, not an inflated one. Saving you money is another of our key objectives.

Hassle can take many shapes when purchasing a flat in Barcelona. From issues related to the property itself, its documentation, legal aspects and the various documents to be signed, to all the side aspects that must be addressed to make the purchase of a property in Barcelona possible from opening a bank account in a Spanish bank and transferring funds to applying for a NIE or getting trusted professionals. Barcelona Flat Hunter is by your side, easing and facilitating every step of the way, making the whole process as hassle-free as possible.

Who does not want to ensure its interest are protected? Spain still has a long way to go when it comes to protecting Real Estate buyers’ interests and being part of Europe where some countries have stronger regulations gives a fake sense of safety to many foreign buyers.

You already found the flat and just need an expert eye to comb through everything before moving forward? Don’t hesitate to reach out, we will be happy to ensure your interests are protected.

Barcelona is a great city to live or invest in, and even though it requires diligence & expertise when moving forward with the purchase of a property, a buyer agency (“personal shopper inmobiliario”) like Barcelona Flat Hunter might be just what you need to turn your project into reality!

Validate your real estate project feasibility and get a free consultation with one of our experts

Learn more

Barcelona, Spain: Top Investment Destination For Chinese Real Estate Buyers

Barcelona, Spain: Top Investment Destination For Chinese Real Estate Buyers

Published: 12 March of 2020

Spain is now the 7th main investment destination worldwide for Chinese real estate buyers after US, Australia, Canada, UK, Thailand and New Zealand according to Juwei website and Barcelona continues to be the number one city in Spain where Chinese are purchasing real estate.

It is amid this growing interest that Barcelona Flat Hunter attended the LPS exhibition in Guangzhou, South China’s leading invitation-only high profile luxury real estate exhibition.

CHINESE INVESTORS’ INTEREST IN BARCELONA REAL ESTATE HAS NEVER BEEN STRONGER.

When it comes to availability and cost of real estate, KPMG ranks Barcelona as the 5th most attractive city worldwide (and 1st in Europe), and this did not go unnoticed by Chinese buyers, eager to secure “bargain deals”.

The very attractive “Golden visa” scheme that allows non EU citizens who invest 500.000 euros or more in real estate in Spain to obtain a residency permit for them and their family (and with it a visa free access to all 26 Schengen countries) is as well of huge added value for investors looking at securing a residency outside of China.

Add to this, the city vibrant lifestyle, pleasant climate, high-level universities & quality healthcare and potential investors find the perfect mix, even more so if they are looking to move abroad with their family.

The combination of all above elements translates into a strong increase of property purchased by Chinese buyers in Barcelona. 

In 2015, out of the 1805 properties purchased by foreign buyers in the province of Barcelona, 449 were sold to Chinese clients.

2016 will most likely set a new record as more and more Chinese clients are taking advantage of the Golden Visa scheme who was simplified late 2015, making it the most attractive plan currently available in Europe.

EVENT REVIEW: LPS GUANGZHOU, SEPTEMBER 2016

Strong of its team’s experience working and liaising with Chinese clients, Barcelona Flat Hunter attended the LPS Guangzhou – South China’s leading invitation-only luxury real estate exhibition in late September 2016.

During three days, our team got the chance to interact with some of the 6,000 highly targeted VIPs who attended the exhibition. This was an opportunity to introduce a concept still very new to Chinese Buyers: the buyer agent approach, whereas the agent does not sell properties but instead search within the entire market for the one that fits all his client’s requirements. From there, it remains by his side to ensure his interests are protected at all times.

This tailored & service oriented approach is setting Barcelona Flat Hunter apart from traditional real estate agencies.

Barcelona Flat Hunter’s Golden Visa services were as well presented during the fair and at a conference dedicated to real estate investment in Europe.

The Golden Visas being one of the main motivation behind Chinese buyers purchasing properties in Spain, our legal services in both English and Chinese throughout the procedure raised a lot of interest and were perceived as very complimentary to our real estate activity.

By attending the LPS Guangzhou, Barcelona Flat Hunter demonstrated once more not only its commitment to the Chinese clientele but as well the company clear will to continue offering them the most adequate tailored-services.

Starting 2017, full travel services will be made available upon request to our clients, including chauffeur and Chinese speaking guide, easing even more any prospective visit to Barcelona.