Buying Overseas Property-an insight into the common misconceptions Janet and John Part Two

In part One we left Janet and John planning to embark on their two week buying trip to Spain searching for their new home abroad. They really had not decided exactly what their budget was. The day of the trip was fast approaching and so they sat down one evening at Dinner and discussed the contentious issue. Janet was quite convinced they needed in excess of 200,000 Euros to finance what she had already seen on the net. John was loathe to dip into pensions, SIP and savings, even though he could, and Janet of course knew that! However after a good Dinner was enjoyed a budget of circa 200,000 Euros was agreed. The journey began. Once they had arrived in Valencia they made their way to their Hotel and called the first agent on their list to make arrangements for the next day. The agent was out and did not return their call till much later. Regretfully John had decided not to email his travel plan ahead and did not give any of the agents a potentially suitable property from their web sites, as an indication of his preference. Luckily the agent had a slot the next day and after John had explained on the phone what he was looking for off they went on the first inspection tour. It was a disaster. The agent showed them 6 properties. It took most of the day to respectfully trudge around the properties that the agent had thought might be suitable from the description John had given them. It was a quiet Dinner that night and Janet and John were starting to re-think exactly what their criteria for a property was and how best to convey the information to an agent and as quickly as possible. They had made a classic error.

Had I been asked I would have told them to tell the agent in advance when you are coming. Most of the re-sale houses belong to Spanish people who work for a living and need some notice of a visit, unless the agent has the key. The latter is unlikely as you will discover the market is fragmented and many agents have the same property on their books! Go to a recommended agent. Always look up a potential property on the agents web site and communicate this to the agent in advance of your visit. Quite often the property you want is already sold. However the agent at least can see exactly what it was you think you might want and can look for several other similar properties. Dont just say We want a house with 3 bedrooms near Callosa.This will simply open Pandoras Box. Should the agent show you a property which you know immediately you are definitely not interested in, tell him! Dont waste your time or his anymore than you have to.

The next day the second agent took them out. John was quite quick to point out one or two properties in the agents portfolio so that they didnt waste too much time. Another long day ensued looking at 6 houses, but this time they found one they liked and although very tired enjoyed a better Dinner. On the third day a funny thing happened to Janet and John. The property they liked yesterday was shown to them again by a different agent. So what was so funny about that? Well as John explained to me, the price yesterday was 235,000 but today the same property on this agents brochure was 25,000 Euros cheaper! They were astounded, but as the house was empty when they were shown around for the second time they said nothing to this agent. However the conversation over Dinner was explosive in comparison to the silent conversation on the first night! Janet and John were learning hard and fast, but did they have all the answers? Who would help them find their way? In Spain as in most overseas countries, it is possible for many agents to be involved in the sale of one house. Firstly there is the Correador. He is the man who originally finds the property and arranges the price the owner actually expects to receive. He then informs his agents that he has found a new property. He will normally keep the key and escort the agent and the client to the property. Each agent will visit the property and make their own photos and description so the properties appear to be different on competing web sites. Then some agents without a web site will Lend their CD of properties to a number of other agents. This can sometimes leave a line of agents with an interest in earning a commission from the sale of one property. In exceptional cases there are reputable agents who will be brought a property directly by the owner who will give it to him on an exclusive basis. The problem is this rarely happens.

What to do? Janet and John decide to have a day off. Good thinking! The day after, they return to the third agent and ask to see some more property similar to the one they prefer. They spend another whole day searching the countryside from Cullera to Gandia on the relatively unknown Costa Valencia. Johns research has shown him that this is a quiet coastal area in comparison to the Costa Blanca further south. It has a risk of greater rainfall and is therefore much greener and lusher with tree lined landscapes. It is colder in winter but John might still be sweltering in August and swimming late into October. There are many coastal and typically Spanish inland villages. Properties here could represent good value for money. They have now seen 5 houses during the course of the morning and are approaching the area to the north of Gandia, tired and hungry. Jose Miguel has become their favored agent and has just taken them to a local Tapas bar to refresh them. In the afternoon he shows them another 2 houses and this time they really find one they love. This house not only ticks all of Johns boxes but offers Janet much more, a BBQ house, large swimming pool and an annex in the garden for visitors. Of course Jose Miguel has left the best to last and cleverly increased their aspirations and the bad news is, its not within their budget. John might now need a local mortgage to top it up. Oh dear, poor John. Janet and John tell Jose Miguel that they really love this property. Big mistake! He immediately informs them that there is another agent with another client interested in the same property. Of course a reserve deposit of 6000 Euros given to him now, will secure it for them. What happens next? Is Jose Miguel really a crooked agent? Does John part with the dosh? Will Janet suffer from Sun sickness and persuade John to pay the reserve with his Amex card?

Read installment Three tomorrow.

hugoraymond@mypropertypal.com