Real estate market trends for 2012 reveal that average home prices in Madrid will fall another 20 percent, at least between 2012 and 2014, after having already dropped by an average of 20 percent since 2007.
The market being full of risk and opportunities, I recommend you follow these 5 tips – a short summary of what I would recommend to clients and friends:
1) Beware of the market variations in Madrid, and buy now only if you plan to hold the property for more than a minimum of five years.
2) On top of the purchase price, you will have to spend 10 to 15% in taxes, commissions and fees.
3) Real estate agents in Madrid usually charge commission to the seller: 6 percent is the average. This is different to other parts of Spain. However, some agencies, such as Red Pisos, charge 3 percent to each party, the seller and the buyer. Just be aware that, in most cases, you will not have to pay commission, but it may occur.
4) Negotiate with patience and preparation. All real estate professionals know that average advertised prices are 20 to 30 percent higher than the final sale price. To negotiate well in Madrid, you need to be patient, have alternatives and be prepared.
5) Get help, you will need support, and keep in mind that real estate agents payed by the seller are not your friends. It’s recommended that expats use the services of a flathunter: a professional who can help get the best property at the best price.
If you want more advice, do check my website Moving2Madrid with the detailed version of this post, all the interactive maps to choose the best neighborhoods and more advice.
If you have a specific questions, do not hesitate to send me an e-mail – I will come back to you within 48 hours.