There are many reasons why Valencia is a great place to buy a house. Whether you are looking for your dream home or an investment, the Valencia property market has a lot to offer, whatever your wants and needs. Read on to find out how to buy a house in Valencia.
Why Purchase a Property in Valencia?
There’s a reason why Valencia has such a booming expat community. People make the move to take advantage of all Valencia has to offer year after year. From the low cost of living (which extends to property prices) and fantastic climate to the quality of life, we would argue that Valencia is one of the most wonderful places to live in Europe. And, whilst very much a cosmopolitan city, Valencia city and province still retains its traditional Spanish culture, offering a relaxed, authentic Spanish lifestyle for those looking for a slower pace of life. And, even though there is a more relaxed and considered approach to life in Valencia, there is still an abundance of professional opportunities throughout the city.
Pre-Purchase of Property in Valencia
There are a few things you will need to sort in advance to purchase a property in Valencia.
Obtaining a NIE
An NIE (Número de Identidad de Extranjero) is an identification number you need to buy a house in Valencia as a foreigner. Keep in mind that it is currently difficult to obtain an NIE. Normally you can apply for it yourself through the Spanish Consulate, or at the police station here in Spain, but those times are unfortunately over. There are currently long waiting times or worse, you can’t get through.
Since it is currently very difficult to apply for an NIE yourself, if you buy a house through us, we can advise you exactly how best and fastest to apply for your NIE at that time. Ultimately, this will mostly then be done through the lawyer and notary who can apply for it for you with a power of attorney.
It’s important to remember that obtaining a NIE is slightly different post-Brexit, and you will need to supply additional documentation to support your application.
If you’re buying a property with us, we can advise you exactly what documentation you need to supply, depending on your circumstances.
Open a Spanish Bank Account
After obtaining a NIE, you can open a bank account at any bank of your choice. When signing the property purchase before the notary, you will need sufficient funds in your Spanish bank account, so it’s a good idea to sort this out ahead of time. If you need to wire funds from a non-EU account, it’s important to research various options to save on transfer fees. You can also look into foreign exchange brokers and online transfer services like Transferwise to save more on fees.
Remember to allow enough time for transferring funds to your Spanish account, as delays can sometimes occur. If you’re buying a property with us, we can advise you on the exact process and how much time you will need to give.
In addition to budgeting for the property price itself, we also recommend putting aside an additional 15% of the purchase price to cover all fees that may arise in the process. There are various charges that you will encounter throughout the process, such as notary and surveyor fees, registry costs and property transfer tax (which is 10% of the purchase value).
The Purchase Process
Now for the exciting part! Searching for your dream home in Valencia.
At Dream Properties Valencia, you can search thousands of fantastic properties in Valencia city and province to suit a variety of budgets and requirements. You can either search yourself or use our Property Finder Service and let us give you some more tailored recommendations.
Once you’ve found what you’re looking for, there are a few steps to consider.
Preliminary Property Checks
When buying with Dream Properties Valencia, you can be assured that all necessary checks are carried out prior to listing. We will be able to provide all information about ownership, possible restrictions and property size and confirm that the property is currently with utility bills, community charges and property tax.
Making An Offer
Found your dream home? It’s time to make an offer!
At Dream Properties Valencia, we can communicate your offer to the seller and facilitate any negotiation. You can usually expect some negotiation, but this varies from case to case.
Once the purchase price is agreed upon, the next step is to sign the pre-agreement, in which both parties commit to completing the purchase. This agreement details the agreed price, the closing deadline and any other conditions that factor into the purchase of the property in question. During the pre-agreement, the buyer usually pays a percentage of the agreed purchase price (normally 10%). If the seller backs out, they lose their deposit. Likewise, if the buyer backs out, they will encounter a fee for this.
If you’re applying for a mortgage, the bank will assign you a property surveyor to inspect the property and provide a report with the appraised property value. Please note, the bank will only offer a mortgage to a percentage of the appraised value (usually 70%), so it’s important to have additional funds put by to account for this.
The closing is completed before the notary and can also be done on your behalf by someone with a power of attorney. First, the notary will check both parties’ identities and the seller’s property title. Then, the remaining purchase price is usually paid by bank cheque to the seller, so ensure that you notify your bank of this in advance with all the details so they can issue the cheque. Following this, both parties can sign the contract. Then, the property is transferred to the buyer’s name on the Property Register, but a private agency usually carries this out. When you buy with Dream Properties Valencia, we can advise you on all of the above and be there for you throughout the process!
Purchasing a Property with Dream Properties Valencia
If you’re looking to purchase a property in Valencia, we’re here to help you through the entire process. Whether you’re looking for your dream home or for an investment opportunity, we can advise nuances of each process and make sure the process is as simple as possible.