Buying a home without a real estate agent

When you decide to buy a flat or house, there are many decisions to make.

One of the first decisions is whether to buy directly from individuals or through a real estate agency.

Why buy a home without a real estate agent?

Most people who buy a property without a real estate agent do so to keep the transaction as inexpensive as possible. Without intermediaries, they will not have to pay their fees.

Alternatively, you may negotiate a better price or seek a more personal, direct deal.

Before deciding to take this step, it’s important to understand the benefits and potential drawbacks of buying directly from an individual.

Advantages and disadvantages of buying a home without a real estate agent

Advantages of buying a flat directly from individuals

The positive aspects of buying a house without a real estate agent are:

Lower price. You save the 5% commission that real estate agents typically charge. By eliminating the middleman, you can save a significant amount.
Negotiation. Having direct dealings with the owner gives you more flexibility to reach agreements. Although market prices must be considered, there may still be room to negotiate a price reduction.
Speed of process. Without the need for multiple appointments with an agency, the agreement can be finalized directly between the parties once the buyer has made their decision.

Disadvantages of buying a flat directly from individuals

However, not everything is positive when a professional is not involved. Here are the negative aspects of buying a home directly from individuals:

Higher risk of fraud. Sometimes, a lower price can end up being more expensive. Although most transactions proceed without issues, there are also sellers who try to profit through deception and illegal means.
Fewer guarantees. The buying and selling process can be quite complex and, without the help of specialists, mistakes are more likely.
No option to file a claim. If the seller has not included the necessary guarantees in the contract and the buyer faces problems, they will not be able to file a claim later.

How to buy a home without a real estate agent

If you have decided to buy a flat without a real estate agent, it is important to know the steps to follow.

Steps to take before buying and selling

Before formalizing the purchase, the buyer should:

Be informed about prices. This way you will understand the market value and avoid overpaying or underpaying.
Meet the seller in person.
Visit the property. Viewing the property in person is always advisable to see possible defects and other aspects.
Talk to the neighbors. This will provide you with genuine feedback about the area, the costs of the flat or house and other relevant information.
Know the local services. A visit to the area will help you identify nearby amenities, like schools and supermarkets.
Check the Property Registry. You can verify details about the property, its encumbrances, and the owner.
Reservation. If all of the above is correct and meets the needs of the buyer, a reservation contract or deposit should be made. This document outlines the purchase conditions and confirms the buyer’s deposit.

Steps to take in the buying and selling process

During the buying and selling process, the steps are as follows:

Sales contract. This includes the conditions agreed upon in the deposit contract, such as the price, delivery date, and deed.
Signing of the deed. Once everything is in order, including financing, a date is set with a notary. Both parties then sign the contract, which is converted into a public deed.

Steps after the sale

After signing the sale, a few more steps need to be taken:

Registration in the Property Registry. There is a 60-day period to do so and it is usually handled by the notary.
Change of ownership in the Land Registry. This is automatically processed once the contract is converted into a public deed.
Payment of taxes and expenses:
- Property Transfer Tax (ITP). The deadline for payment is 30 days after signing the sale and the amount varies depending on the Autonomous Community where the property is located.
- Capital gains tax. There is a 30-day period for its settlement and it depends on the City Council of the town where the property is located.
- Property Tax (IBI). This also depends on the location and is paid by the buyer starting the year after the purchase.

Buying a home without a real estate agent is a decision that many people make to save on fees and gain more negotiating power. To do this, it is advisable to first visit the property and review all the documentation. During the process, the deposit and sales contracts must be drawn up and, subsequently, changes will have to be made in the Registry and Cadastre and taxes will have to be paid.

Further information

This article is part of our service Real Estate Lawyer in Spain. Visit this section where you will find all the useful information on this topic, including a complete guide on How to buy a house in Spain.

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