Understanding the Bidding Process in Spain
In Spain, the process of bidding on a property is more straightforward and less formal compared to some other countries. Once a buyer finds a property they're interested in, the negotiation phase begins.
Initial Offer
The buyer usually starts by making an offer below the asking price. This can be done verbally or in writing. It's common to start with a bid that is 10-20% lower than the listed price.
Negotiation
The seller can either accept the offer or make a counteroffer. This back-and-forth can happen a few times until both parties reach an agreement. It's essential for the buyer to be aware of the current market conditions and property values in the area to make reasonable offers.
Reservation Deposit
Once a price is agreed upon, the buyer may be asked to pay a reservation deposit to take the property off the market. This deposit is usually around 1-5% of the property's price and is subtracted from the final amount when the sale is completed.
Private Contract
If everything checks out, the next step is signing a private contract (contrato privado de compraventa) which outlines the terms of the sale, including the payment schedule and the date of transferring ownership.