Expenses Derived from the Sale of a Second-Hand Property

20 de October de 2019

What expenses are involved in buying a second-hand home?

The expenses of buying a second-hand home depend on multiple factors. In addition to the property's value given by the seller, and of course your negotiating ability, when asking "how much does it cost to buy a house" you must also add:

Whether it is a new or second-hand home.
Whether you will pay the entire expense in cash when buying a house.
Or whether you will opt for a mortgage through a financial institution.

Other issues, although of lesser importance, are whether you acquire a officially protected housing (VPO), or opt for the subrogation of the mortgage that the seller has on the flat to buy.

Do you need a Simple Note?

For €11 avoid lengthy Administrative procedures

BUY NOW

Lowest market price

Valuation

In the expenses of buying a second-hand home in cash, many seek to save the added cost of resorting to an appraisal company to evaluate the value of our property. Otherwise, if we resort to a mortgage loan to acquire the property, the bank will require certification from an external expert (Appraisal Company) to assess the percentage of financing they are willing to grant us.

A valuation simulator like Idealista's will give you an "approximate" idea, but the bank will require you to use an official appraisal company.

When calculating the expenses of buying a home without a mortgage, we must add the added cost of the Property Registry. In this case, when taking out a mortgage, this expense is assumed by the bank since June of this year 2019. A different thing is if the bank or savings bank passes this cost on to you through another channel, such as charging added commissions.

For this reason, if you have used a home purchase expense simulator from 2018, the results obtained will no longer be valid and you must update them. On the other hand, in principle, an expense simulator for buying a home in 2018 without a mortgage, the result should be correct because the legislation in this case has not changed substantially.

Official Property Valuation

Buy the Official Valuation of your property from €144

BUY NOW

Euroval, Appraisal Company approved by the Bank of Spain and the CNMV

Notary fees

The belief has spread that, in the sum of expenses for the purchase of a second-hand home without a mortgage, we must pay the notary fees that should not be assumed by those who resort to a mortgage to acquire the home. This is not exactly so. In the case of resorting to a loan granted by a bank, we must at least pay the cost of the copies of the notary, although its amount is very small compared to the total amount of the entire operation.

See more--> How much does it cost to register a property?

Property registration fees

Like notaries, property registrars also have regulated what price, called "tariff", they can charge for their service. Specifically, they are regulated through the BOE law

And, like notary costs, the cost of property registration is conditioned by the amount fixed in the public deed of sale, the deeds.

In the case of resorting to a mortgage, the expenses when buying a flat or another type of property will also be assumed by the financial institution.

The fees of notaries are regulated by law, so that all notaries charge the same for the same service, with a maximum possible discount of 10% of their fees. The expenses of buying a home in Madrid, or in Teruel, to cite two examples, do not vary depending on the notary you choose.

It is the price of the property, the amount of the operation, that conditions how much the notary's expenses will amount to.

Readers have come to this article looking for:

Distribution of assets of heritage in divorces in community property and separation of property

How long will it take to sign the mortgage after the valuation of the home?