Posts tagged with "estate agent"

Energy Performance Certificate In Spain

As
from the 1st June 2013 every domestic property for sale in Spain will require
an energy performance certificate (EPC) which is regulated by the EC directive
2002/91/EC.  In Spain it is known as the
Certificado de Eficiencia Energetica (CEE) and is valid for ten years. The EPC
has its roots in the Kyoto Protocol which was a worldwide initiative started in
1997 to address the issue of Greenhouse gases and forms part of the ‘Energy
Performance of Buildings Directive’ (EPBD)

The
EPC provides information on how to make your home more energy efficient to
reduce carbon dioxide emissions. The test measures the efficiency of the
property as a whole and all energy consuming elements that are integrated
within it. The ratings are scaled from A to G, ‘A’ being the most efficient
and  ‘G’ being the least.

The
report will advise on how to improve the energy efficiency of the property in
at lest two ways. Improvements are voluntary not mandatory but could save you
substantial cost in the longer term. Insulating your home for example would
keep you warmer in the winter and cooler in the summer thus saving fuel cost.

Property
for sale

If
you intend to sell your property you will need an EPC before it is advertised.
For properties already for sale, you will have seven days after the 1st June
2013 to prove that you have applied for the certificate and then you are given
a 21 day extended period to obtain the EPC
You can of course obtain one beforehand. All estate agents are required
to show the EPC rating on their details. Failure to obtain the EPC could result
in a fine for both the vendor and estate agent, ranging from 3000 – 600,000
euros!   If a sale is agreed without the
EPC, your sales contract could be declared void and your purchaser can demand
compensation for not being informed about the properties energy efficiency,
especially if lawyers have been engaged.

Notaries
are also obliged to request the certificate when signing over the property.

If
your property has been insulated and double glazed, once tested, it should have
an excellent energy efficiency rating. This will be attractive to prospective
purchasers. On the other hand, if you have a poor rating, it could work against
you.

Rental
property

This
new law also affects properties for rent. A certificate will be required for
any let that consumes at least 25% of the annual energy consumption. This
applies to short term holiday lets as well! This short term letting is
obviously very difficult to police and many will choose to ignore the
requirement. If you advertise for longer term lets

(min
4 months) the certificate will be required. If you already have a tenanted
property, you do not require a certificate unless you get a new tenant. The
laws says that new tenants have the right to know the energy consumption of the
property they rent. Failure to provide the EPC means you can be fined 3.000 to
600.000 Euros by the Spanish government, your rental contract declared void and
your tenant can demand compensation for not being informed about the properties
energy efficiency.

If
you rent out your property through an agent, either you or your agent will need
to get a certificate for your property. An agent will not be legally allowed to
offer your

property
for rent or sale without a certificate. The law assumes that most holiday lets
that are being commercially advertised will consume more than 25% of the annual
energy used.

How
do I obtain an EPC

Only
a qualified official energy efficiency certifier can perform an EPC test.

The
building inspector will collect data from the building as follows:

1.Measurement of walls and windows and orientation, North, West,
East , South.

2.Composition of walls, cavity wall, insulation, materials.
Composition of windows, doors, double or single glazing.

3.Composition of roof, floors and foundations in contact with
the ground.

4.Solar control devices, porches. awnings, overhangs or shadows
that can affect the building excluding trees.

5. Installations, boiler, air conditioning, heating system,
solar panels etc..

The time it takes to collect all the information depends on many
factors. One hour for a simple one level property of a small size but longer
for a larger property on more than one level.

Other considerations also include, when the original property was
built, if it has been extended over recent years. This
data is then in-putted into a special program, which can then provide an energy
efficiency / carbon emissions rating. This is a quick process but may take
several hours subject to the complexity and amount of data being processed,
after which a certificate should be issued promptly.

If
you make changes to your property that help improve your rating, you can have
your property re assessed at any time during the period your certificate is
valid.

This article has been written by Anthony Bloom and may be used with permission only.

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Posted by on 04/24/2013 15:24:00

Moraira & Javea property news Nov 2011

It’s been 8 months since our last Moraira and Javea property news update. Time fly’s!

This year started very well as we reported previously. Thankfully many more clients have decided to use our services and we have continued to be very busy.
Many of the leading estate agents have also reported having a very busy year. Regardless of the dire economics we all face, there has been a glut of buyers ready with their cash.

The biggest problem has been and continues to be the significant reduction in the average property budget that buyers now have in relation to the bulk of property prices out there.

Consequently the availability of quality property stock that falls into the price band that people can afford has diminished and the amount of legwork involved with finding an affordable property has increased substantially for all concerned. You have to kiss a lot of frogs!

Over 93% of enquiries are for less than 400,000 euros and 70% of these are for less than 300,000 euros.
Having spoken to many agents they have confirmed a similar enquiry pattern.

For the majority of properties for sale, agents are struggling to close the reality gap between vendor and purchaser expectations.

Quality properties that do fall into the mainstream affordability band and represent value for today’s money have continued to sell throughout the year and expect next year to follow the same trend.

We have had a very busy year doing just that for our many clients and this is where a property finding expert can help you find quality property quickly and help you decipher the best from the rest in a short space of time.

Happy hunting!

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Posted by on 11/16/2011 07:39:00

Property valuations in Javea & Moraira

3 bed 120m2 moraira apartment for sale

3 bed 120m2 moraira apartment for sale

Recently I have been trying to make sense of property prices and valuations in Moraira and Javea.

There seems to be all sorts of data around with regard to valuations. The majority is not area specific relative to the Javea and Moraira properties for sale. Although we have seen, in some cases, a price reduction of around 20 – 30 % in advertised sales prices, it does not represent a true picture of the underlying value that was born during 2007 – 2009 financial crisis.

What the majority can afford will always dictate the underlying value of a property. It just takes a while for the reality to kick in. Many property owners out there simply don’t have to sell or can hang on to an unrealistic price until such a time when the majority of prices have been corrected. They then have to follow suit if they wish to sell. This process usually takes three years to bottom out to a realistic level. Some properties are priced to sell but the majority for sale still doesn’t reflect reality.

The properties that seem to sell are being substantially reduced when it comes to the actual deal done. Most never get to know how low the actual sales price was relative to the asking price. Many offers are refused but the ones that are selling are deals based upon a more realistic price level to start with. So how do you get a realistic valuation?

The process of valuation is arrived at by various means but rest assured, it’s always way behind the market when it comes to the reality of reductions! Most vendors already seem to know how much their villa is worth. They arrive at this in the usual way and this is based upon other advertised prices and what they think properties have been sold at next door or down the road over the past few months. Then by making adjustments for what they paid for their property and how much money they have spent on it, plus adding some on to negotiate with and “oh, the exchange rate is not in my favour” etc.

The other way is to ask an estate agent to come around to value the property. Estate agents are aware of the market conditions and will use slightly revised figures per square meter that reflect this but will still hold out in hope that the market will improve or will not be as affected like other areas. Historically there is a lot of truth in this as far as Javea and Moraira go. These desirable areas have been able to ride the storm far more than other areas, but of late there seem to be many people having no alternative other than to sell at low prices. In my opinion this time next year will see the low priced deals done today being the advertised sales price next year. So the initial figures estate agents arrive at will be similar to what the banks come up with to lend new money.The only difference is that estate agents are more at liberty to be a little bit more creative with the rest, usually increasing the valuation to please the vendor subject to how desperate they are to sell.

The truth is there is no rock solid formula and the formulas that exist in my opinion, do not reflect the true underlying value of a property or basically what the majority can now afford. Even the official figures are lagging behind what’s happening on the ground and what’s actually happening on the ground is lagging behind the financial crisis born during 2007 and it’s not over. It may take another year before we see some realistic prices being advertised, maybe even longer.

Estate agents talk amongst themselves and know, even if they are not selling much them selves, some of the properties being sold and at what price some are exchanging hands for. Many can’t believe the deals that are being done and it would insult many vendors out there wishing to sell if they knew. Consequently it’s easier to live in the past and avoid the confrontation when asked to put a value on a property! They allow the market to take its natural course.

Another way, though at cost, to value your property is to pay a bank to do it and allow them to be as clinical as possible. Don’t sell it to them! After all these guys will probably be financing the 70% mortgage to someone, somewhere down the line. Its inevitable banks will have their say because most buyers require some form of funding or at the very least an official valuation, so you might as well know how banks are going to look upon the value of your property before hand. At least you can waive an official bank valuation in front of them regardless.

Recently I thought I would compile 200 villa properties in Javea, taken at random from various websites. I made sure that the prices were reduced prices and that the properties had a similar build 150 – 175 and plot size of 850 – 1200. Then I totaled up the build size and divided it by 200, likewise with the advertised prices. Then I divided the average price by the average build and came to an average figure of 2,300 euros per M2.
I compared this 2,300 M2 figure with some recent bank valuations and arrived at a figure that was almost the same. Today I have spoken to a property valuation expert that does valuations for the banks. Banks use various registered organizations that specialize in such activities whom follow the guidelines laid out by central government.

One such organization is Tinsa and a report by them echoes my sentiment on this subject matter even though there info is dated relative to what’s happening on the ground.

Tinsa, a Spanish property valuation company used by several high street banks, has signaled that advertised house prices will drop a further 20% over 2009. In the same report, they have calculated the drop in 2008 as being 10.1%
If this figure is correct, Tinsa say that this will bring house prices back to their advertised levels in 2005. The monthly drop may be between 1 and 1.4%.
This is not news to many agents down here on the ground, who have seen price reductions of between 20 – 40% in the resale market. The official figures often lag behind the reality of business day to day.
A 10% drop in price does not really attract attention among the bargain hunters looking to purchase a Spanish home at a drastically reduced price. It is only those properties that have reduced to 2005 prices that are actually selling.

It may well take time for certain vendors and developers to catch up with the pricing downturn. It is only those that need to sell for personal or financial reasons that are pricing their properties realistically or accepting very low offers.

This translates into only a small percentage of properties available at ‘distressed’ prices. However, they are the only properties that are selling and selling quickly.

As there seems to be no accurate formula for property valuations, I asked how they establish a value on a given property. It was a little vague but here we go…..

Firstly, they have a valuation guide by province and this is broken down to some degree by area. The problem is that there are huge fluctuations from province to province and town to town. The system depends greatly upon each individual valuation officer having knowledge of a given area and the prices these areas are able to attract. For example a like for like property in the south of Alicante would be significantly less in price than say the north of Alicante in areas like Moraira and Javea.

The bulk of the valuation is based on the amount of actual living accommodation, excluding garages, terraces and undeveloped under builds. The plot is usually included in the price/calculation, unless it’s a double plot. The pool also tends to be included. Then adjustments are taken into account relative to the overall condition of the building, gardens, views and area. So it’s part science part art. One thing for certain is that properties with greater living accommodation have always valued up very well, where as smaller accommodation will not calculate favorably and therefore will be more difficult to sell especially if the buyer requires finance.

Some of the recent bargains I have come across are larger properties of 280 and 290 M2 build. As far as bank valuations go, they value up well and one was recently valued at 670k two months ago. But the prices they are being sold at are way below a bank valuation. The figures work out at 1,300 – 1,400 per M2!!
The reason for this is because that market for older properties that were once worth 600 – 750k has virtually gone, and what’s left of that market sector can buy something that was once worth 1.2million!

So to get back to property values in a real world, many of the once 600k – 750k properties are selling at around the 400k mark, some above and some below. This is mainly due to the fact that lending has become difficult and people have less value in their currency. Spain used to be cheap!

It all sounds like doom and gloom, but let’s not hide away from what is actually happening here on the ground. You might as well know because if you have a villa that you need to sell and it’s not too dissimilar to the many out there and amongst hundreds of others for sale within a given price band that 90% of the market can not even afford, through no fault of their own, how are you going to sell your villa?

If 90% of all buyers can only raise 300k – 400k at best, plus the additional 10% cost and you happen to have a villa that you think is worth 700k or 800k, think again!
Where is your market? Who are you selling to? The few buyers around with this higher budget can find amazing villa bargains that seem unreal and unfair but they indeed exist.
If one day the advertised prices are within the grasp of the many and sterling recovers to 1.45 against the euro, you may stand a better chance of finding a buyer. Either way, you will lose out on both the reduction in price and probably on the exchange rate if you need sterling!

One thing for certain is that resale properties represent amazing value for money. And are far less expensive than new build. You would be lucky to find a decent plot for less than 225k and anything with a sea view is at least 350k for a 1000M2 plot. With the cost of architects, building permissions and modern day materials and labour you don’t get much change out of 600k and that’s for something basic. Consequently, the future of new build looks grim and only prime and very expensive plot locations seem to be being built on for a more discerning customer.

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Posted by on 07/28/2009 19:26:00

Villas for sale in Moraira and Javea - Repossessions

Moraira property for sale

For some time now property prices have slowly but surley been corrected to take account for the economic downturn.

There are some genuine bargains to be had if you do your homework. It’s a mistake if you think that bank repossessions are bargains! It’s not always the case and sellers always try to recover at least the outstanding mortgage as a last attempt to sell. One must ask the question why the property has not sold before the repossession? In my opinion it’s usually for good reason.

Having seen many overpriced or undesirable villas for sale, I am not surprised they have never sold even though prices have been reduced. Many are not even worth the outstanding mortgage and consequently they get repossessed.

Banks will auction them off and try to recover the mortgage. If they fall short they will pursue the owners for the outstanding debt.

Assuming you can pick up a so called "distressed property sale” from a bank, there seems to be a fundamental flaw here as you risk inheriting the very same reasons why it never sold in the first place, so buyer beware!

As Moraira and Javea property finders, I have taken a close look at bank repossessions lately and it has been of no surprise I have seen many of the properties on the list over the past 3 to 4 years.

Understanding why property does not sell and what truly represents excellent value is paramount. The market may be depressed and property sales way down, but don’t be taken in by all of the media’s generalisations, sweeping statements and exagerrated hype stories. The fact is there are genuine bargains to be had and desirable property is still selling. It’s a buyers market and for those with some liquidity property seems to be a safe bet. Where else do you invest money and feel safe?

That said, more recently it has been more euro led since sterling has lost so much of it’s value.
Eurozone countries are taking advantage of the price reductions. The UK buyers whom once led the market are few and far between, compared to when sterling was strong but they indeed exist.

Real bargains tend to be with the people that bought before the boom began and paid very little for their property. If they have dire circumstances they can afford to let go and still recover more than most that say bought during the boom so it’s worth bearing in mind.

Without doubt there are some desirable properties at knock down prices if you have the time to find them but you need to be careful that you arn’t just buying work. Our property finding services are free so feel free to contact us with this link

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Posted by on 05/22/2009 14:10:00

Spanish Property Market

The Spanish property market has been experiencing difficult times over the past couple of years and many Estate agents have gone out of business and many more are set to follow. The exchange rates for sterling are at an all time low against the euro and predicted to get worse. Some are saying one for one over the next twelve months. At that time the UK will probably join the euro if it’s not already been orchestrated!

The doom and gloom of the British economy is having a negative effect on everything, especially the spanish property market that was once booming. There are still people buying property in Spain but the trend seems to be people leaving the UK and selling up to seek a new life. It’s understandable, especially with the recent events with the new PM Gordon Brown and his crew.

Some of the property prices here are reflecting a bad situation and those who need to sell are reducing there prices accordingly. There are a few good deals to be had if you know what you are doing. It’s certainly the time to buy and have recently seen an influx of private investors swooping up some of the worthwhile deals to be had. Some are not worth having if it’s a fast profit you want!

Finding the right property is a very time consuming task and most people simply do not have the time , let alone the expertise , in finding the best deals and a property worth investing in.

There are areas in Spain that should be avoided mainly due to the mass developments that have been allowed along the coast, many of which continue to cause financial problems for the investors and more recently the short sighted developers who built them!

To shop smart, you really need an expert property finder that is well versed in such a task and can fast track you to the best deals worth seeing.

Here is a general property link

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Posted by on 05/31/2008 21:42:00

To Buy or Not to Buy?

To buy, or not to buy? – that is the question.

Especially when some of the UK media are reporting that property in Spain is overpriced by 30%, that thousands of properties are empty, prices are falling, developers are going bust, and Spanish building company stocks are plummeting. Add to this the really scary stories of developers taking homeowners´ land, demolition of illegal buildings, and town hall corruption, and it´s enough to put you off the idea of owning a home in Spain completely!

Of course we all know that there’s “no smoke without fire” and there are obviously issues for concern, but we also know that the media excel at scaremongering – good news doesn´t make headlines. Perhaps some feedback from this Correspondent in Spain may dispel some of the misconceptions and generalizations.

These tales of doom and gloom apply only to very specific areas of Spain and if you do the research, there are still some very worthwhile investments to be made. Hang on tight to your dreams – Spain still offers all the attractions which drew you to it in the first place, not least the wonderful climate and some beautiful places to live.

Today’s poor exchange rates are obviously concerning prospective buyers relative to what they can buy for their £sterling. When we bought our home in Spain, the exchange rate was in the mid 1.80´s. The pound has gradually weakened over the past 5 years, to around the 1.30´s now. City analysts predict a further decline over the next few months, with the pound settling between 1.20 – 1.30 for some time and unlikely to rise above 1.30 again. Then, who knows, maybe the UK could join the euro?

We have no option other than to get used to it, but the weaker pound has clearly not discouraged us Brits from traveling, shopping and holidaying in the euro zone. Nor has it put us off moving abroad – according to UK government figures, a record 250,000 British nationals emigrated last year, with Spain and France in the top 4 destinations. It simply means you don’t get as much for your money as you might have a few years ago, unless you work hard to find it.

Right now may not really be the best time to sell, but it could certainly be the best time to buy, provided you do your research carefully.

We have been living and working in Spain for many years now and have seen the property boom and then the inevitable tail-off – not dissimilar to what seems to happen in the UK every few years. Being in the resale Spanish property business ourselves, we have to make sense of what is happening now in the Spanish property market to enable us to plan ahead and secure our future. We keep abreast of what´s being reported in the UK, but we have the benefit of first-hand experience and local knowledge to help us keep things in proportion.

When we first began researching where to live in Spain, we made numerous trips to all the Costa’s over a 4-year period, and almost gave up! We witnessed, nearly 10 years ago, the mass of new developments and housing estates being constructed in the sun. It was cheap, and awful. We knew then, and it wasn’t rocket science, that the bubble would one day burst as far as those areas were concerned.

The lack of infrastructure, poor locations and the whole mass housing estate boom was certainly not our Spanish dream and not surprisingly, it has become a terrible nightmare for some of the unsuspecting property purchasers of that time.

I can remember some of the property exhibitions and Reps on stands trying to reel us in with inspection tours and subsidised trips, geared for selling a vast number of properties. It was like lambs to the slaughter and we are glad that we never succumbed to it. That massive scale of new development and over-supply is responsible for much of today´s bad press and falling share prices of the larger construction companies.

We were fortunate that we had the time to thoroughly research our ideas and not get caught up in the whirlwind created by ravernous property conglomerates. Seeing so much development really put us off, and after nearly giving up on our Spanish dream, we found Moraira and Javea on the northern part of the Costa Blanca.

Moraira and Javea were already well established and had many beautiful, individually designed villas, but no high-rise and no housing estates. Developed areas were interspersed with lots of unspoilt pinewoods, vineyards and olive and almond groves. Looking inland, there were beautiful rolling landscapes and mountains, and coming from the Peak District National Park, it felt more like home!

We soon realized, though, that these exclusive and desirable locations had a much higher price tag than what was on offer elsewhere. This did not deter us, we decided to invest in location and compromise a little on the property. We are so glad we did!

The quest we embarked upon for our own “"place in the sun":/” eventually became our business, offering property finding services to others looking for suitable property. We realised that most people don’t really have the time, contacts or expertise to seek out property in the best location and at the best price. They would rather work with us than alone, and we are here with our fingers on the pulse! See some of the testimonials.

We have seen a significant increase in a new breed of client over the past couple of years. People are shopping smarter these days, and 98% of clients are very active on the internet. But they soon realise that all is not as it seems, especially with varying prices for the same property at numerous different agents. It’s no wonder they are cautious and rightly so, it gives a really unprofessional impression of the property market here. This, coupled with the bad press tarnishing Spanish property generally with the same horror stories, it’s no surprise that many people conclude that they can pick up a villa for next to nothing!

Although we have seen a steady decline in property sales in general terms, thankfully Moraira and Javea still continue to retain desirability and consequently, higher property prices.

Most people have holiday homes here to enjoy, whilst knowing they have made a good investment. The expats, who live here permanently, are more than settled. So it would be a mistake to think that people in established and desirable areas like these are going to give their homes or second property away; Most seem far from being desperate.

Yes, it is a buyers´ market, and people wishing to sell their property realise the trends and are prepared to negotiate harder on price subject to the condition, location and more importantly – on their personal circumstances.

We are seeing many properties being withdrawn from sale and people holding back because they know now is not really the best time to sell. Consequently, quality property stock is becoming rare and well-priced quality property still sells first – if you can find it!

A good investor knows the time to buy and a good deal! But beware of waiting for the impossible deal and missing the boat completely. Prices will inevitably rise, whilst you hang on for that fantastic deal in the rain and the cold, whilst taxes are getting higher, crime is on the increase, the cost of living is sky high and getting worse, and immigration continues to escalate at an alarming rate. You could be enjoying the sunshine and laid-back Mediterranean lifestyle today.

It’s a real challenge to find your dream villa, whose owner happens to be desperate to sell, especially when Moraira and Javea are very popular choices for the villa rental market offering significant income for those that seek it.

That said, there are always a number of people going back to their native country, either through ill health, divorce, bereavement etc. But is their property in the location you want and are they prepared to accept your offer? Most of the properties that are not selling usually have good reasons why they don’t.

As far as that suggestion that all Spanish properties are 30% overpriced is concerned, in our experience prices are always negotiable to some degree, especially so on properties requiring a lot of work. But if it’s in the wrong location you’ll be lucky to get your money back. It’s surprising just how many make this mistake, so be careful you don’t end up buying one of them, old or refurbished! I wouldn’t buy some of the properties I see at half the price, let alone a 30% reduction.

And some I would not touch at all, so it is really important you do the research and don’t believe everything you read. You will know a good deal when you see one.

We help all our clients make the right choice and a property truly needs to represent good value in the whole scheme of things. To establish this, we work very closely with all our clients, seeking out really worthwhile properties on their behalf. We utilise all of our skills, contacts, building experience and years of living here, whilst we build up a true picture of what you want, and what is available. All this can be in place ready for your arrival. For further information take a closer look at this link or you can contact us using this link

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Posted by on 02/01/2008 19:54:00

Moraira Estate Agents

Moraira Marina

Moraira Marina

Although Moraira and Javea are small towns, there are over 140 registered estate agents offering properties for sale.

Passing by the many shop windows, one would think that there is an abundance of property deals to be had! Don’t be fooled, first impressions can be very misleading.

Nearly all property stock on the market is non exclusive. This means it can be for sale with any number of estate agents.

Over time prices are, more often than not, reduced by the vendor with one or maybe two agents but not with them all.

It is a common occurrence to see varying prices, especially on the internet. Indeed, unless the estate agents are informed or have the resources to keep their website bang up to date, you never really see a true picture.

It is often that what you see may have been reduced, withdrawn or sold.

With so many estate agents around where does one begin?

How much time do you really have?

How do you know you are getting the best deal?

The simple answer is that you don’t and probably won’t, unless you do it everyday for a living and are expert property finders with your finger on the pulse!

It’s a whole new ball game here in Spain. It’s not regulated like it is in the UK and you are vulnerable. There are many things the buyer needs to be aware of.

Make no mistake here, it is a very time consuming job to get it right. Our buying guide may help you but for more information you ought to have a chat with us.

As property finders, we work for the purchaser, seeking out and selecting properties worth while from over one hundred estate agents. Property for sale in Moraira and property for sale in Javea are very popular choices.

If you want to have the “pick of the crop” then you really ought to consider our property finding services. Happy hunting.

More information can be found on this website.

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Posted by on 10/10/2007 14:23:00