Suddenly there seem to be a lot more visits from people wanting to buy a house for sale in Spain. There are also more people looking for straight rentals as well as option contracts for later dates when the banks are more open to lending after they see a better market and are able to get capital to fund buyers.
This week in Valencia one of the jobs has been phoning sellers to ask if they would consider renting with an option to buy further down the line and the response has been surprising. After hearing what was involved in a purchase option contract more than 50% expressed a great interest in doing it. So just in case you have a property that you could rent with an option to buy here are some of the ways it can be done.
The idea stems from the fact that someone likes your property but because of the prevailing situation they cannot currently proceed with a purchase whether that is because they need banks to start giving out money again, they need to prove income in Spain for a greater time period or they are waiting for their residency application to go through so as to get a better deal. If these circumstances apply, or maybe just one of them, then renting with an option to buy could be an option.
Drawing up a contract of this type has many variable but the basic premise is a rental agreed between both parties for a fixed period and within that period of time the tenant has an option to purchase at any moment and the right to match other offers on the property. At times the owner stops marketing the property actively for a time to give the tenant time to decide whether it is for them and so that they can get comfortable in the property, for example in one of our houses the owner stopped marketing for 8 months guaranteeing the tenant peace of mind for that time. The person renting feels a greater sense of ownership of your property.
The good point for a potential purchaser is that an agreed price is set now and they can buy at that price at any moment. It is possible to rengotiate the price if the market continues to fall too. Positives include the fact that if prices go up then the tenant has a guarantee of purchase at a stated price. The owner gets a price guaranteed during the contract and has the obligation to sell at that price if the tenant wishes to purchase. They also have a guaranteed rental and a person living in the property who is more likely to look after it as they have a stake in the future of that property.
The contract is a bit more complicated than normal as it requires lots of negotiation on behalf of tenant and landlord but here we take care of that negotiation for you.
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