Finding the dream home after an intense search is an immense joy. However, before deciding to buy it, it is essential to take into account important issues that can affect the procedures and also what you end up paying for it.
Research before making a decision
Never take for granted that the property has all the licenses in order and is free of charges; it may not be the case. Therefore, when purchasing a second-hand property, we must confirm some aspects:
- Property: we must verify that the person who transfers is the real owner, either through the deed or in the Property Registry.
- Debts: also in the Registry you can check if there are any charges on the property. Besides, you should make sure that it is up to date with the IBI payment and the community fees.
- Legality: on the one hand, we must confirm that the property complies with urban regulations; on the other, we must take into account that officially protected homes are subject to particular conditions as regards the sale of second-hand homes.
If there is nothing to object to in these matters, the transaction will not generate any added and unexpected problems. But before doing it, it is still worth to consider another point: the total amount you are going to pay for the property.
Value of the sale of a second-hand property
So, one thing is the sale price of the property, and another is what you end up paying for it. Several extra expenses will get added to the amount requested by the seller:
- Appraisal: if you are going to apply for a loan, the bank usually requires this procedure to assess the amount granted as a mortgage. Its cost is variable and will depend not only on the professional but also on aspects such as the location of the property or the need to find additional information. On average, it can cost around € 300.
- Notary: it is where the public deed of the sale of a second-hand property gets done. Notary fees are regulated. However, many factors can influence the calculation, such as the sale price, if you have a garage or storage room, if there is subrogation to a mortgage, etc. The average cost would be between € 600 and € 900. If the notary's fees correspond to the formalization of a loan or mortgage, in this case, it is up to the financial institution to take charge of the expense.
- Registration: although registration is not mandatory, it is advisable. It is what attests that, indeed, the property belongs to whoever claims to be the owner. The law regulates this cost and depends on the value of the estate.
- Taxes: the sale of a second-hand home requires the satisfaction of two taxes. On the one hand, the IAJD (Tax on Documented Legal Acts) which usually ranges between 0.5 and 1.5 depending on the region. On the other, the Tax on Patrimonial Transmissions, which depends on each region and ranges between 6 and 10%.
Eventually, we should keep in mind other expenses that are not always given, such as those derived from management services in advising on the procedures of the operation or the mortgage opening commission, if requested.