How to negotiate the purchase price of a property in Spain

When you’re buying a home in Spain, the asking price you see in the advert is rarely the final price you’ll pay. In most cases, there’s room for negotiation — and knowing how to handle that process can save you a significant amount of money.

Why negotiate the purchase price of a property?

The objective of negotiating the price when buying an apartment, house or any property is to reduce it so that the purchase costs are lower.

A good negotiation helps you avoid overpaying for a property that may be overpriced and can also improve the overall return on your investment.

This negotiation can also include other aspects such as delivery conditions, payment methods, and possible improvements to the property.

Therefore, the main reasons for negotiating the price when purchasing a property are:

• Financial savings. A successful negotiation can result in a significant reduction in the purchase price, which translates into considerable financial savings.
• Investment optimization. Negotiating allows you to adjust the price to market conditions, avoiding overpaying for a property that might be overvalued. What’s more, ensuring you pay the right price keeps your property’s long-term value stable.
• Better profitability. A lower purchase price can improve the potential return on investment if you decide to sell or rent the property in the future.
• Market advantages. In areas with plenty of supply, sellers are often open to offers, so not negotiating can be detrimental, as you could miss out on opportunities to get a better price.
• More favorable terms or conditions. Negotiations can extend to other aspects such as delivery terms, payment methods, the inclusion of upgrades, or the assumption of expenses. Which means you can negotiate who pays certain fees or ask for furniture or fixtures to be included in the deal.

Common mistakes when negotiating the purchase price

Many buyers lose negotiation power by making these avoidable mistakes:

• Not talking to the bank to find out about the possibilities of getting a mortgage. Always check with your bank to know exactly how much you can borrow before house-hunting. If you set a budget without taking this into account, you’ll be looking for a home without any real chance of getting one.
• Not doing household calculations to see if you can afford the associated expenses. Even if the bank considers you eligible for a mortgage, the monthly payment plus the other living expenses might stretch your budget too far.
• Not studying the market and not knowing that many prices are significantly negotiable, can leave out of the search properties that don’t seem to fit the initial budget, but that can be afforded by negotiating its price.

Steps to negotiate the purchase of a house effectively

When negotiating the price for the purchase of a house, follow these steps:

1. Do research on the following elements:

• Real estate market. It’s essential to analyze the sales prices of similar properties in the area to determine a fair price for the property you’re interested in.
• Specific property. Analyze the condition of the home, any necessary renovations, and any factors that could affect its value.
• Seller’s situation. Knowing details, such as whether the seller is in a hurry to sell, could influence the willingness to negotiate.

2. Set a budget:

• Set a limit. Set a maximum amount you’re willing to pay, including mortgage payments, taxes and other associated expenses. These additional expenses typically add up to 10–15% of the purchase price and can include:
  • Taxes: New builds → 10% VAT. Resale properties → 6–10% Transfer Tax (ITP), depending on the region. Stamp Duty (AJD) → 0.5–1.5% if you’re taking out a mortgage
  • Notary fees: €600–€1,200
  • Land registry fees: €400–€800
  • Administrative fees (Gestoría): €300–€600 (for mortgage paperwork)
  • Valuation (appraisal): €250–€500
  • Estate agent’s fee: usually 2–5% of the sale price (if paid by the buyer)
  • Renovations: from €2,000 for light work up to €80,000+ for full refurbishments
  • Furniture and appliances: €3,000–€15,000
  • Mortgage-related costs: opening fee (0–1%), home insurance (€150–€400/year) and life insurance (€150–€600/year)
• Consider financing. Make sure you’re pre-approved for a mortgage to demonstrate your purchasing power.

3. Negotiate:

• Initial offer. Submit a realistic initial offer, considering your research and your budget.
• Arguments. Justify your offer with objective data, such as appraisals, the condition of the property, or the need for renovations.
• Flexibility. Assume that you’ll have to negotiate and make concessions, such as accepting a slightly higher price in exchange for the seller assuming certain costs.
• Attitude. Maintain a professional and respectful attitude throughout the negotiation process.

4. Close:

• Written offer. The offer must be made in writing to record the agreed terms.
• Inspection. Have a professional inspection of the property performed before closing.
• Advice. Seek legal and financial advice to ensure the process is carried out correctly.

Additional tips

To ensure the process goes as smoothly as possible, keep the following tips in mind:

• Don’t be afraid. If the seller doesn’t want to negotiate a price that’s close to your budget, don’t hesitate to look for other options.
• Consider other elements. In addition to price, consider other aspects such as the closing date, community fees, and the inclusion of certain home features.
• Avoid intermediaries. By negotiating directly with sellers, you’ll have greater control over the entire negotiation process.
• Be patient. This process usually takes time, so it’s best to be consistent and not rush into something so important because it could lead to costly mistakes.

Negotiating the purchase price of a property is one of the most valuable steps in the buying process. Having a clear budget, understanding all additional costs, and being well-prepared will help you secure a better deal and a stronger investment. With solid research, realistic expectations, and a calm, respectful approach, you can successfully buy a home in Spain without overpaying — and with confidence in your decision.

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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