Know your facts.

The Dream

Majorca Realty estate agents provide a personal service to clients wishing to purchase here in Majorca.
Once you are ready to begin your dream home search, the excitement starts to happen. Now this is where I say to all my clients, "draw in the reigns, get a steady foot hold and lets keep all our common senses to the forefront". 
This is where my advise to all prospective purchasers is to carefully consider what kind of property your hearts desire, the location, and most importantly the overhaul price including  taxes and fees,  fees are reasonable in comparison with UK fees.

Buying a home

Qualifying for a home loan

Accurately determine how much house you can afford, including taxes and fees, you don't want any nasty surprises after speculating time, effort, and money, to find that the taxes, and fees, tip your plans upside down. And learn why a good credit score and loan pre-approval are critical in the real estate business.

It's essential to consider how much real estate you can afford to pay before you start looking for your dream home. Mortgages here in Europe are normally about 3% lower than in the UK. Considering what house you can afford early on will save you time and money because you won't want to bid on unattainable real estate property, or apply for loans that could be unserviceable. It will be easier to get a home loan based on what you can afford, and if necessary, you will be able to take creative steps toward improving your financial and credit profile concerning real estate.

How much house (Real Estate) can you afford?

As a broad generalization, most people can afford to purchase real estate worth about three times the total (gross) annual income, assuming a 20% down payment and a moderate amount of other long-term home loan debts, such as a car, etc. With no other debts, you can probably afford to buy a house worth up to four or even five times your annual income.

Mortgage companies, Banks, and Building societies, have traditionally wanted you to make all monthly payments using no more than 28% to 38% of your monthly income. (If you have an excellent credit record, however, they might allow you to go more deeply into debt.) In other words, if your monthly income were £2,000, the lender would want you to pay no more than £760 (.38 x £2,000) toward all your debts. The percentage depends on the amount of your deposit payment, the interest rate on the type of home mortgage you want, your credit history, the level of your long-term debts and other factors. Generally, the greater your other debts, the lower the percentage of your income lenders will assume you have available to spend each month on mortgage re-payments. Conversely, if you have no long-term debts and a great credit history, and can put down a larger than normal deposit, a mortgage-lender may approve carrying costs that exceed 38% of your monthly income.

Check your credit history

Selling a house

What's the best way to price a house for sale?

The key thing in selling a house is determining how much your property is actually worth on the home market. The most important factors in selling a house is to determine a house's value. Comparisons of similar recently sold properties in the neighbourhood should give a good idea of what your asking price should be.

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Estate agents have access to local sales data and can give you a good estimation of what your house should sell for. Many Estate agents will offer this service free; in hopes that you will list your house with them, and in turn they can sell your house.

Other options include hiring a professional house surveyor and visiting public record offices. Finally, asking prices of houses for sale still on the market can also provide guidance. However, you'll need to adjust these house prices for local market conditions. In some areas, asking prices are typically 10% or more over the market value, while in others, houses for sale may be under priced in order to fuel a bidding war with homebuyers. To find out asking prices on a house, check newspaper's, estate agent offices, and classified ads,  searching the Internet to sell or buy a house.

Is it possible to sell a house without a broker or agent?

Usually, yes. This is called a " House For Sale By Owner". You must, however, be aware of the legal rules that govern house ownership transfers. Who can conduct the legalities for selling a house, and what to do if and when "Problems and encumbrances" arise which slow down the transfer of ownership? You also need to be aware of any disclosures as to the physical condition of your house you want to sell, and all other relevant information. Check with your Solicitor, or other professionals for guidance and information for the sale and property transaction.

If you want to sell a home alone, be sure you have the time, energy and ability to handle all the details, from setting a realistic price to advertising, negotiating offers and accepting the deal.

Is there some middle ground where a seller can use a more limited (and less expensive) way?

Using an estate agent's help with such crucial tasks as, setting the price of your house. Also advertising your home for sale in the local rag and multiple listing services of homes for sale in the area. You might consider doing most of the work on selling your home yourself, such as showing your home to prospective buyers.

Database's managed by local and wider Internet sites, and or handling some of the more complicated paperwork when the house sale completes is something that estate agents do every working day of there lives.

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