So many people have dreamed of owning a home in Mallorca. And for some, the dream does indeed come true. But before you commit your hard-earned cash to purchase a piece of Mallorcan real estate, it may be worthwhile taking a look at some of the legal, financial and practical aspects of buying a home here on this beautiful Mediterranean island. Whether it’s an apartment, penthouse, villa, or country house, whether it’s a holiday property or you are moving here permanently, it is a good time to invest in Mallorca at the moment. So let’s look at the ins and outs of buying your dream property here in Mallorca and why it is a good idea to have an expert by your side.
First things first: choose a reputable estate agent.
It is true that anyone can shop for a new house and even get a peek inside without formally signing on with a real estate agent. However, flying solo may not be the way to go–and could end up being more costly than a agent’s commission in the long run. Find out why you should consider hiring a real estate agent when buying a home.
1. Time is Money
Have you heard the phrase ‘Time is Money? It is an aphorism that originated in “Advice to a Young Tradesman” by Benjamin Franklin, implying that, while money is considered one of the most important aspects of life, one should not forget that our most valuable commodity is “TIME”.
While doing the work yourself can save you the significant commission rates many real estate agents command, a real estate agent will save you plenty of precious time. Agents have easy access to all other properties listed by other agents and can easily track down and filter the ones that meet your criteria, get in touch with sellers’ agents and make appointments for you to view the homes. If you are buying on your own, you will have to play this telephone tag yourself. This may be especially difficult if you’re shopping for homes that are for sale by owner. Moreover, sometimes properties are available but not actively advertised. A real estate agent can help you find a hidden gem.
2. Pricing Expertise
While you may have to do extensive research to pull information on sales of comparable houses, real estate agents will immediately know whether a specific house is overpriced or underpriced. Agents with a good knowledge of the local market will be able to estimate the value of a home the minute they walk through the door. Thanks to their experience, they know the ins and outs you may not be aware of, and how well a neighborhood holds its value. A good agent will know exactly what you’re looking for and won’t waste your time touring houses that won’t work.
3. Knowledge
Once you’ve found your perfect property in Mallorca, your agent will guide you the stress of dealing with all the legal complexities of buying a home in Mallorca and will inform you what annual fees will need to be paid. For instance, are there any community fees? What about local council taxes? Is there an annual real estate tax? And what about government taxes? Are there any restrictions, charges, or debts on the property?
4. Unemotional negotiation
From price to repairs to possession date, there are many factors up for discussion in any real estate transaction. The agent who is representing you will look at the transaction from your perspective, conveying your concerns to the seller or his agent and helping you negotiate a purchase agreement that meets your needs. Acting as an intermediary/messenger, he/she may be in a better position to negotiate the price, play the “bad guy”, take the heat in a negotiation and prevent obstacles that can kill a deal. And when you get into a challenging situation, it can really pay to have a professional on your side.
5. Tackling the paperwork
There are a lot of documents involved in ta real estate transaction. These probably include the written offer, the written and signed counteroffer, the little details (like specific repairs) and what exactly was and was not included in the sale. The odds of missing something, not initialing a margin or not checking a box, can drop substantially when you’re working with someone who knows the paperwork inside and out. A knowledgeable real estate agent will know what’s required in your market, helping you avoid delays and costly mistakes.
But not all real estate agents are equal. When choosing an agent find one who driven from within by a passion or a purpose that involves serving people. This characteristic should be the foundation upon which everything else is built. He or she must not only be competent, but also have strong morals and ethics with the ability to be completely honest with you.
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