At the moment there are more potential customers walking through the door wanting to buy a house for sale in Spain. Not only that but there are more people looking for rental and also rentals with an option to buy at a later date if and when the banks start getting their act together and lending again after they extract themselves from the mess they have created.
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. Thus if yur property could be rented out before selling here are the details as to how to do it.
The idea stems from the fact that someone likes your property but because o 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 any of these apply, or maybe even a couple of them, then they might be interested in renting with an option.
The contract that is drawn up can have many variables but the base of it is that they pay an agreed rental for an agreed time and within that period of time they have an option to buy the property and the right to equal any offer that comes in on the property. Sometimes there is a guarantee on behalf of the owner to stop marketing the property for a set time so the person renting can settle, in one of our contracts they were guaranteed eight months in the property without any change of ownership. The tenant thus has a stake in the 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. The other good part is that if prices rise then they are guaranteed being able to purchase at the agreed price within the duration of the contract. 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.
