You’ve dreamed of owning a home on the lovely island of Majorca and the good news is there are many fabulous Mallorcan properties currently on the market to choose from.
However, one attractive option popular at the moment is to look for a Majorcan property that has been repossessed by the bank.
The truth is, due to la crisis (Spanish economic crisis) there are more Mallorcan properties repossessed by banks on the market than ever before.
This, sadly is unfortunate for those who have lost their homes during the recession, but good news for those looking for a Mallorcan property at a bargain price.
Mallorca, like the rest of Spain was hit hard by the housing market crash. But things are now looking up and the market is beginning to recover. And that’s great news if you are looking to buy a repossessed property as, not only could you snap up a real estate bargain, there is also no chain to worry about and therefore no delay in moving in to your home.
What’s more, a recent Spanish law allows that anyone purchasing a property for 500,000 Euros or more automatically qualifies for resident status!
So how do you go about buying a property in Mallorca that has been repossessed by the bank?
The first thing to understand is that it is different to buying a home in a ‘normal’ property sale. So here are some helpful tips in buying a repossessed property in Mallorca.
Where do I find a property?
Some Majorcan properties repossessed by the bank can sit on the market for months, while others can move within hours of being put up for sale. Here it is vital that you find a local professional estate agent who is familiar with the purchase of repossessed property on the island. We at Balearic Properties have extensive knowledge in this area and would be delighted to help you find the right property.
How do I determine a property’s value?
First of all the price of a property repossessed by the bank may not necessarily coincide with the market value of that particular home.
Naturally the bank wants to wants to sell as quickly as possible and may put it on the market at a drastically reduced price. Yet if the market values the property at a higher price, the price you pay could substantially increase.
Alternatively, you may well be able to snap up a bargain, getting the property at a lower price than that of the asking price.
Spanish banks such as Sa Nostra and Santander want to reduce their liabilities as soon as they can. Because of this they often market properties at a big discount, while also trying to get the best possible price.
Again, the advice here is to choose a respected Mallorcan estate agent who will determine a property’s true market value.
What about negotiating?
Unlike a ‘normal’ property purchase there may be no negotiating at all. Often a Spanish bank will not put in a counter offer, so you must ensure you are aware of the value of the home you want.
The advice here is to offer your ‘top price’ for the repossessed home or the bank may simple pull out of the deal.
Do bank repossessions take longer to buy?
Not necessarily, but it is different from the conventional housing market in that properties repossessed by the bank can sit on the market for months, while others go within hours.
Once again, utilise the services of an experienced Mallorcan estate agent who is familiar with the purchase of repossessed property.
What about the property’s condition?
A property repossessed by the bank is sold ‘as is’. Remember, the previous owner would obviously have been in some financial difficulty, so you can presume that the property is in need of some repairs. Factor in your estimated cost of getting the repairs done when putting in your offer.
As you can see, using the services of a knowledgeable Mallorca estate agent such as Balearic Properties can save you a lot of heartache in finding your dream home in Majorca.
To view our latest repossessed properties go to balearic- properties.com. Or why not pop in to one of our offices for a friendly chat? You are most welcome!