What to expect during your Madrid apartment buying experience
Madrid has been ranked by a number of investment advisors as one of the top European cities for property investment. It has relatively low prices, high rental yields and prices are poised to appreciate 15% between now and 2021.
However, it can be a difficult market to navigate. Without insider knowledge it can be difficult to find the best Madrid apartments. Very few people speak English. Real estate agents are unresponsive and not to be trusted. The market is moving quickly and the purchase process is a bit different than in other countries. Combine all of this with the fact that purchasing property in any foreign country adds an additional level of complexity to any transaction and you indeed have a tricky situation. What to do?
How do I know I will get a good apartment when I use your services?
Because we have hundreds of happy clients, and many that use our services a second or third time to purchase additional properties. These yield long-term returns that are 50-100% above those achieved by other Madrid property investors. Here are a couple examples:
But don’t believe us! Here are some testimonials from our clients:
“Super-professional company, if you are looking for a property in Madrid, you won’t find (believe me – I searched a lot) a professional, bringing-value, with great and responsible persons like M2M. From formulate a decision, finding the best properties, building an investment strategy, doing tough negotiation and managing your property.” Itay Ofarim – Leumi Group, Israel
“We had a great experience with Ben and the team at Moving2Madrid. He was very attentive to our requirements and made the whole process of finding and buying an apartment in Madrid very smooth and stress-free. We love our new place and he was also able to make recommendations to help us find architects and arrange a renovation. We would certainly recommend the Moving2Madrid service!” Julie Flower – Strategy consultant, UK
“Moving2Madrid delivered, and more: not only did they find us the best house, they negotiated, helped set up Spanish bank accts, set up utility services, arranged for TV / internet to be installed and even came to a phone shop with me!” Chris Webb – Partner at Spectrum IFA Group, Singapore
What to expect when you use our services
Years of experience helping international buyers purchase Madrid apartments has taught us a great deal about how to shop for property in this city. We have developed a unique process that has enabled us to become the market leader in this space.
Clear and consistent communication
We start the buying process with an initial consult. Here we explain everything clearly to our potential clients. We walk them through:
- Current market dynamics and pricing.
- How the purchase process works.
- Our negotiation strategy.
- The closing process.
Once we agree to start working together, our team starts the process by sending clients an initial planning/onboarding email where we access their preferences, budget and investment goals.
Since we view client communication to be so important, expect a consistent stream of emails and for us to check-in with you, via Skype, every 10-15 days.
Hassle free shopping
Before clients come to Madrid
Once we know exactly what you’re looking for, our Madrid based team begins the process in your absence. We use our extensive insider connections to curate a short-list of 8-10 properties for you to see when you visit the city. During the search we continually update the apartments we see based upon client input. This process yields properties that are ideally matched to your preferences. If we are on the fence about a property, or think you will be, we discard it.
Our commitment to our customers is that they only see Madrid apartments that they love. We value our clients’ time and never show them anything marginal. To learn more about how to get started, book a free consultation today.
When clients are in Madrid
When you arrive in Madrid you will be greeted with a list of potential Madrid apartments, including initial estimates of value and yield. We visit all potential properties over the course of two days.
Importantly, we spend time during the process showing you Madrid. The city has very diverse neighborhoods– some are definitely better than others for property investment. In our initial onboarding procedure we get a feel for the neighborhoods that will best fit your lifestyle and investment objectives. Once you’re here we help you get to know them. We spend time visiting important sites, having coffees in neighborhood cafes and enjoying working lunches.
Once you see all the properties, and we answer all your questions, you will be in a position to make an initial selection. We have our clients select three properties they wish to pursue. Since the Madrid property market is moving quickly, it is important to simultaneously work on three separate deals. This way, if we lose one property due to market dynamics we don’t have to start again from square one.
A tried and true negotiation strategy
We constantly reoptimize our negotiation strategy. Currently, the key is to secure an investment worthy property before anyone else. Negotiation is done incrementally and efficiently. We tailor our strategy to each individual property, share it with you and then begin.
Before entering into any pre-contract, our lawyer does initial due diligence to make sure the property is not in debt. If it is, we need to know this so we can get the mortgage cancelled if our offer is accepted.
Once we have crystalized our negotiation strategy and done the initial due diligence, we engage with our short-listed sellers. The goal is to place an initial offer (contrato de arras) on three properties. This will require the client to put down 3000€. If a property has an existing mortgage, we will retain 1000€ to get the mortgage cancelled.
At the end of the negotiation process, the client makes a final Madrid apartment selection. Once this is done both the buyer and seller sign a contract.
Thorough and timely due diligence
The objective of due diligence is to ensure a safe transaction. There are three areas that need to be thoroughly reviewed:
- Legal framework
- Structural framework
We have a trusted legal team and architect that perform due diligence. We actively manage them to ensure the process is carried out in a timely fashion and all steps are communicated to our client. We have everything translated into English. Then we ensure all paperwork is properly executed (there is a lot of it in Spain!), all bank cheques are organized, taxes are estimated correctly and that the contract is signed without a hitch.
An easy transition process
Once the property is purchased we work with the notary to ensure the property is registered with the Land Registry. We pass you to our accountant to make sure all taxes (the IAJD and ITP) are paid. Finally, we transition your to our renovation partners so you can begin working with an architect and builders to get your new Madrid apartment rental ready ASAP!