3 tips to save on home acquisition costs, according to the Valuation Institute
To save thousands of euros in the purchase of a home, it is recommended: compare appraisal companies, sign a mortgage "without commissions" or take advantage of the real estate discount campaigns, especially on holidays such as Black Friday
After the entry into force of a Decree Law in November 2018 and the Regulatory Law of Real Estate Credit Contracts, in June 2019, several of the costs that were previously borne by the buyer - Documented Legal Act Tax, would notice, registration and management - have become the responsibility of the banking entity. In this way, there are three the number of expenses that the person who is interested in buying a home must face: appraisal, opening commission and taxes.
While it is true that the number of taxes payable has been reduced, the sum of their amounts continues to be a strong outlay for buyers, who wish to minimize spending. One of the most common ways to get real estate at the best possible price is to take advantage of the rebates, in the same way that would be done when buying any other asset ... and that is that in the brick world there are also discounts.
Thus, when purchasing a home, the buyer must bear the cost of the property as well as other expenses related to the acquisition. Valuation Institute explains how to minimize all these expenses:
Check the prices of the different appraisal entities, it can mean savings of up to 20%
One of the essential requirements to formalize a mortgage is the appraisal report. This document, prepared by a qualified technician, determines the real value of the property, considering factors such as the characteristics of the home and the market situation. For this document to be accepted by financial institutions, it is essential that it be issued by an appraiser approved by the Bank of Spain.
The rates of a mortgage appraisal are normally similar, however, they are not officially established, so each appraisal company can establish the amount and reductions it deems appropriate. It is advisable to check the prices of several companies before requesting pricing and visit their online spaces for discounts. The Valuation Institute appraiser, for example, offers a reduction of up to 20% in the online contracting of an official appraisal service.
Use online comparators to get the best mortgage loan
The opening commission on mortgage loans is one of those expenses whose application has been put on trial in recent times. At the beginning of 2019, the Supreme Court denied that it was abusive and admitted its validity, although, even so, many banks have decided not to charge it. Therefore, it is recommended that before signing the mortgage, an investigation is made to find out which banks charge the opening commission and which do not, since it can imply a percentage of up to 1.5% of the capital that is available for the acquisition.
A good way to know which mortgage loans do not involve commissions is to make a comparison study through the online comparators available. This step is highly recommended since, signing a mortgage without opening commission can save several thousand euros, depending on the total amount of the property.
In addition, the mortgages qualified “without commissions”, renounce not only the collection of the opening rate, but also the collection of some possible subsequent services such as early amortization, subrogation, novation or the change from variable to fixed.
Take advantage of special brick promotions, such as Black Friday this 29/11
Just as the times of sales are used to buy furniture or decoration for houses, in the real estate world there are also offers. Although the same trend of winter sales and summer sales is not followed, many real estate portals, agencies and even banks carry out discount campaigns in their offer of flats, garages, storage rooms, premises and even industrial warehouses at prices reduced for a specific period of time. This year, the Black Friday of the brick takes special relevance, and this is the 29th of November the annual day of the offers.
Many real estate agents have already begun to announce sales of 20%, 30% or 40% in real estate throughout Spain, so now more than ever, it's time to get good opportunities. The good thing is that in this market the offers are not limited to a single day, but generally extend for a month or a period of time around the key date.