Thursday, June 09, 2005

How to find a trustworthy real estate agent in Spain

Buying property in Spain with out problems, is it easy? Yes! How?

All around the world the real estate sector has a bad reputation and its not because all the bad people in society realized that they were bad and decided to work in this sector nor is there any other strange reason why the problems that happen, occur in this sector. The reason is very simple.

Now, if the reason is so simple, why is this problem so severe?

The problem has been dragged from the past and the solution is very complicated. This article tries to explain some of the key factors without going into too much detail otherwise it would end up being a book instead of an article. The objective of this article is to explain the key factors so that when someone buys a property, they can make the decision with complete assurance, trust, and satisfaction. Let's use the example of Spain, and even more specific the Province of Valencia. If you want to buy a property in Spain, the following information could save you time, money, and more than one headache. Buying a Spanish villa for any person or family is very important being that it is:

- An important economical transaction, probably the most important we will make in our lives
- An important financial transaction, the largest debt of our lives
- A profitable investment transaction, the most beneficial with the least risk
- The highest social-cultural implication, our residence has a social and cultural effect on us
- A family bond implication, it is our family home and it reflects so.

The principal cause of the problems in the Valencia property real estate agent is ignorance. This ignorance, that many Valencia property agents have, is caused by misinformation or an excess of bad information in all the aspects that form part of the process of buying a villa in Spain. Due to its complication it requires long and extended qualifications and good experience in a sector that is poorly and badly regulated by the administrative institutions and in which there is no official regulated university training. In order to ensure that everything goes well, the Valencia property agent has to generate a big enough level of business that together with experience and academic training can resolve the problems which among others are detailed below.

-Economical problems: Be completely informed of all the economic costs in each case. Each Spanish property case can be very different from the next and being that there are many steps and transactions taking place in the pre sales, sales, and post sales, it's important to keep in mind the extra costs even though many of them are a small amounts but no less important. This is why in Spanish property sales there are costs that are not accurately known or even completely unknown by some other Valencia property real estate agent. These costs are generally approximate calculations which lead to errors, which in turn create further problems of difficulties that snowball.

- Financial problems: Given the magnitude of the financial world, it´s a business in which the Spanish Property agent has to generate a certain volume in a few banks with the goal of maintaining competitive financial and economical conditions. Trying with many banks we are not going to find one that offers you conditions that they can not give you, no one gives money for nothing. When all is said and done, it's the same for all and so for the Real estate agency Valencia to get the most competitive economical and financial conditions for their client, the only way is to generate enough volume with a good reputation backed up by their past experience which allows great agreements with banks year after year.

-Legal problems: VERY IMPORTANT! This is the cause of many problems in other categories. Keep in mind that there are many different legal areas in the sale-purchase process of a property (civil, administrative litigious, local, religious, national and international...) and in Spain it's legislated badly and differently from other autonomous regions, obligating you to have a specific department in the property consultants Spain office that is dedicated only to that, making it necessary to have a larger office which can take on these costs. Another alternative for Spain real estate agents would be to resort to a solicitor, that:
1. Is good but consequently too general (civil, family, administrative...) or because he has a lot of experience in various sectors
2. Good and a specialist but unfortunately very expensive or
3. Cheap and a specialist but is inexperienced and in this sector errors are costly.

There are only a limited number of properties for sale in Spain available but in order to maximise the number of properties in Spain available to the client, the Property consultants Spain needs to have a large number of houses and it is necessary to be a medium to large business in order to provide this assortment. Small Valencia property real estate agency will only offer you a limited choice, or even worse, offer you properties in Valencia that they don't even have. This is a common practise in a small Spanish property estate agent, which puts the client under pressure and/or misinforms the client on Valencia villas for sale he has seen or may see with other Spanish estate agents. You should also avoid those real estate agent in Spain that are too big or are franchises, who will show you what they want and not what you are looking for.

So the answer to the title is: Yes, and how? Well if someone is going to buy a property in Spain and wants to avoid having economic/financial/legal/cost effective/human resource problems what they have to do is look at ONLY medium sized real estate agencies from three to five self owned offices which are no more than 20km from one another or in the same area, with a good reputation, with at least 8-10 years of experience, and with academic training, and if they don't have these characteristics what you have are GUARANTIED PROBLEMS.

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