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November 2007

28.11.2007 - Sellers Packs - help market your Mallorca property

 

Could Sellers packs (background information about a property) assist the marketing and sale of a property? In an article from Inversiones Novi SL Director, David Novi, we consider why sellers should get their paperwork in order prior to marketing their property.

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Home Sellers Packs have been one of the recent hot topics amongst both estate agents and the general public in the UK as the Government there has tried, in a rather clumsy fashion, to use legislation to force their introduction across the market. In many respects it is rather surprising that something which on the surface of things seems relatively sensible should cause such fierce debate and controversy. Much of that has been due the breadth of information suggested for these Packs, the timescale for their introduction, who is qualified / able to provide the reports and the fact that they are being forced on the market rather than being introduced voluntarily.

 

In Spain and Mallorca, to date, there has been little or no talk of the use of such reports but is there a place for them, in whatever form, and how could they assist the process of selling and buying real estate investments? As, in the main, representatives of buyers, Novi Property Mallorca and Mallorca Real Estate Search know only to well how often lack of information, or delays in obtaining information, either holds up a sale or even frustrates it all together. What could be done?

 

Starting at the most basic level there is a certain amount of information that will be needed when it comes to agreeing the private contract for sale (Contrato Privado - equivalent to exchange of contracts in England) and proceeding to completion. Getting this information at the outset will not only save time, once a buyer has been found, but will demonstrate a "seriousness" and "transparency" in approach by the vendor which could well make the difference between a buyer making an offer or not. Serious and well informed buyers will be asking for this information in any case so why not get it all ready in advance?

 

So what information should be included? At this "basic" level what we are talking about is a copy of the deeds (escritura); a receipt for the last Town Hall rates bill (IBI in Spain); if the property is part of complex / block of apartments etc (known as "Community") copies of the most recent receipts and minutes of the last annual meeting (this will help identify discussions and decisions re on going maintenance liabilities etc); and normal statutory service receipts (electricity, telephone etc).

 

None of this will cost anything to put together, will be required anyway and will speed things up when a buyer is found. But should a seller go further and what else could be added to the pack to assist the marketing process?

 

One of the main concerns amongst buyers in Mallorca is the "legality" of a property, or any works that have been done to a property. If the property is new, has been built in the last 10 years, or has been subject to building works that have required Town Hall consent, it would clearly be sensible to include copies of such consents in the pack. Again not only will it demonstrate the seller's integrity but will, in many cases materially differentiate that property from many others on the market that either don't offer this information up front or plain can't because the appropriate consents are not in place! As with the earlier set of information recommended, providing documentation covering building works, be it consents and / or architects drawings etc, will not cost the seller anything - it is information they will have already (or should have!)

 

Perhaps the biggest step for an owner to consider is whether they should invest in additional information, the key one being a survey. There is little doubt that a seller that can show a recent condition survey from a qualified professional, such as a Chartered Surveyor, will be providing prospective buyers with a great deal of confidence not only regarding the property they are looking at but, as importantly, the person (seller) they are dealing with. Even if the report is not assignable (ie transferable from seller to buyer so the latter can legally rely on it and have recourse to the report provider) the fact that the buyer can see that a professionally qualified and competent person has reported on such issues as the electrics, basic condition etc, will go a long way to giving the buyer enough confidence to proceed with an offer and, hopefully, purchase.

 

While the cost of any survey will depend on the complexity of the information requested, an RICS House Buyers Report (suitable for smaller and new properties) for example or full surveys will, depending on the size of property, cost in the order of 500€ - 2,000€, not a huge investment when one considers the value of most properties and the time that could be saved before a buyer is found. In a market that is relatively weak, as the current one, it is all the more important to put in place any proposals that could assist the marketing of a property and differentiate it from others on the market.

 

Will  sellers support such an approach? Well informed will but in reality it will require the support and encouragement of the Estate Agency industry. While some good agents do assist buyers in this regard I won't hold my breath re a general trend in this direction!

 

Should you wish to discuss any aspects of marketing your property, would like to consider a survey prior to going to market, or are a buyer looking to be professionally represented, please do not hesitate to contact Novi Property Mallorca or Mallorca Real Estate Search.   

 

David Novi BA MPhil MRICS

Inversiones Novi SL 

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26.11.2007 - Spanish & Mallorca Mortgage Rates Fall

 

The October Euribor rate (main interest rate used in Spain to calculate mortgage repayment rates) fell for the first time in over two years following the ECB's decision to keep rates on hold. Whether this is just a pause before rates continue to rise, or the top of the current cycle, depends largely on the ongoing world credit crisis. Further fall out could see the ECB move to a quarter point drop early in 2008 while benign news could see further rises as the Central Bank focuses on underlying inflation pressures. 

Story provided by Inversiones Novi SL

26.11.2007 - Spanish Mortgage Reform

 

Impending Spanish Government reform of mortgage legislation could see the costs of taking out mortgages fall by up to 80% in addition to making the process of moving your mortgage easier. Fees and commissions including notary fees, registry fees, and cancellation charges are all likely to be reduced.

For further information and to discuss your mortgage requirements please contact our partners The Mallorca Mortgage Business.

Story provided by Inversiones Novi SL