C-Cat

Has anyone ever come across this one before? (Quote below from a Brit-owned Spanish estate agent's website.)
'Pay before you view' is certainly a new one on me and seems to fly in the face of all the advice one hears on buying a property in Spain. Are they having a laugh?
I wouldn't personally touch this agent with a bargepole - or am I missing something (which I think I certainly would be if I stumped up 10% (10% of what I wonder - each property you want to view, or just one??)
Interested to hear what other people think of this.

"It is essential that, before you visit this lovely region of Spain you have enough funds in place, to be able to pay a 10 per cent deposit in cash BEFORE you undertake any viewings.

This is a requirement because:

1) Vendors require a 10 per cent deposit to secure the sale;

2) Property is selling so quickly that it is pointless viewing unless you are able to act promptly;

3) Vendors will not take your interest in their property seriously, especially in price negotiations, unless you are able to pay the required 10 per cent deposit in cash."

Happy Christmas
C-Cat

Mercedes

Most Estate Agents are sitting filing there nails here now. The market is dead at the moment, some are obviously are getting desperate......

pwwm

Hi C-Cat
This is a new one on me, but around here there is one British run "Estate Agent" that will try to charge you x euro's to visit per house, we refused, after all you do not travel all the way from UK to view with no intention, or do you?
We were not going to be pressured into buying something we really did not want, This was supposed to refundable on buying but I happen to know from one of their purchasers that it was damn hard to get anything back.
Happy Christmas one and all
Pat

C-Cat

Yes, and no mention either of escrow accounts or lawyers - there seem to be enough agents around to be able to steer well clear of ones like these. Perhaps they'd like a bank statement and reference to prove we can pay whilst they are at it?
If there is that little activity around at the moment ( at Mercedes - I can just picture them filing their nails...) maybe they should be knocking 10% off their commission to encourage buyers.
In fact I think we should all have a Christmas whip-round for these impoverished estate agents.

C-Cat

ScotinSpain

Hi C-Cat, I am sure you must have misquoted this Estate Agent . I think what they really mean is they will PAY YOU 10% of the asking price for every property you view ! Even with this attraction, they are probably going down the plug hole like most of the sharks out here. What region of Spain does this two brain-celled moron come from?

sibsie

Companies like Ocean Estates, McAnthony and Atlas prequalify buyers for inspection trips and say this sort of thing all the time. If it's not on their website, you'll certainly hear it from the telemarketers. Bollocks of course!

meseta

You must tell us who this idiot is !

I wonder how many have been parted with their 10%'s by this company ?

Is that plus IVA ??

A Merry Christmas and a prosperous 2005 to all !

sibsie

They don't mean you actually have to fork over the 10% before you view, they mean you have to have the funds to pay a 10% deposit before they will get you over to view properties.

I started working with one of the more well known estate agents over there and went through their hard sell sales techniques. This is something they say as a way of prequalifying buyers. Without being prequalified like that they won't take you over on an inspection trip or spend any time with you. In the end I left on ethical grounds!

Mercedes

Best way to buy if you can is to get hold of a Spanish newspaper as many don't use estate agents anyway. Usually then get it cheaper as they are not paying the agents fees and just make sure you have a good lawyer. When you think you pay 10% tax when you buy then when you sell 10% to the Estate agent and then capital gains tax...... Thats it I'm going to be a drug baron, they make loads of money and don't pay tax l.......Only joking Officer

ScotinSpain

As we're talking about Brit Estate Agents, I agree with every word sibsie ! They have a world wide reputation, but I think Spain takes the biscuit .................

Feliz navidad,

Jock

Mercedes

[QUOTE=ScotinSpain]As we're talking about Brit Estate Agents, I agree with every word sibsie ! They have a world wide reputation, but I think Spain takes the biscuit ..............Quote

I think they take the crumbs as well.

C-Cat

Hello there,

(Just got home from work - 12-hour working days - one of the reasons we're off to Spain next year!)
The agent is www.costaspanisheyes.com - based on the Valencia coast.
I looked up the website after finding their ad in a magazine. Nope, no mention of IVA -
"No income tax, no IVA, no money back, no guarantee...." to paraphrase the song.
I would at the very least have expected some reference to a client or escrow account - 10% is quite a sizeable chunk of money to demand with no reassurance that it was safe, whatever a property costs.
I'm quite amazed by the whole thing - they seem incredibly unprofessional; with Spanish agents already having a terrible reputation, why on earth would any buyer trust them or choose to deal with one that demands several thousand quid upfront for nothing (yes they do actually expect the prospective buyer to hand the money over to them in advance of viewing, not just to be assured the money is available - take a look at the website) - it isn't as though there's no choice of agents, apart from the fact that they only seem to have about 3 properties on their books anyway!

We will rent for a couple of months and certainly will try the newspapers, even though at the moment I only have a few words of Spanish - we will also try to find a good solicitor.
We've also seen quite a few houses with 'for sale' with signs up - er, is it the 'done thing' to knock on doors?

And good on you, Sibsie, for sticking to your principles.

C-Cat

westy

hi
my understanding on reading the text is that they advise not to view properties unless you have the 10% deposit. The 10% would be put in a escrow account while the title search is done on the property of your choice.
It appears that this company has more resales on its books, I understand from my visits to this area that it is fairly undeveloped by spanish costa standards, but the area from Denia, through Oliva, Gandia and up past Valencia to MarinaDor and very desireable and property prices are increasing due to the beautiful coastline and Americas Cup coming to Valencia in 2007.

jdr

I think you would find that this deposit is non returnable and another 10% is payable if you drop out. The only refund of the 10% is if the property is not mortgageable. So make sure for definite before you pass any money over
Mind you if the paperwork is dodgy they are supposed to pay you the extra 10% but i bet they would just keep it for your next purchase.

ScotinSpain

You don't, by any chance, work for a Brit Estate Agent do you westy?