Considerations before Buying a Luxury Home in Sotogrande
Individuals looking for a “Sotogrande luxury home” are not looking for a house that costs a lot or the most. From experience, many factors ultimately make the purchase worthwhile in their eyes.
These factors could be scarcity value such as the one with the best views or at the top of the hill, or the villa designed by a renowned architect. Maybe the Sotogrande property gardens have been landscaped by a famous gardener.
And of course, the finishing must be top of the range including the latest appliances, security features, and interior decoration. Anyone looking to buy an expensive Sotogrande luxury home wants to make sure their investment is secure.
Here are a few considerations for potential buyers of a Sotogrande property:
Consideration #1 – Work with an agent that knows the segment well.
(1) Find an agent who can demonstrate performance in the Sotogrande luxury sector. This works both for buyers and vendors. If they have done it before they can do it again. They will also have been engaged by vendors to sell their properties. The agent should have direct access to the vendor and not be part of a chain of intermediaries.
(2) Find an agent that knows the area in which you will be buying. Preferably an agent that lives in the area and understands what attracts applicants to the area. Deep knowledge of an area may lead to new opportunities for clients. On occasions, properties are for sale but not advertised on web sites. A knowledgeable agent will be aware of these opportunities. Find an agent that has their own Sotogrande luxury web site. You will quickly see if they are knowledgeable or not.
(3) Find an agent that has a good network of agents with similar “luxury property” listings. All good agents working in the luxury market tend to work together. Information such as offline opportunities tends to be shared amongst the network.
(4) Confidentiality is a priority, so find a Sotogrande agent whom you can trust.
Stephanie Noll & Charles Gubbins, at their office in Paniagua Avenue in Sotogrande.
Consideration Tip #2 – Fully understand the financials and legal implications.
By definition, a luxury home in Sotogrande will be expensive, so it is essential to make sure all potential costs are understood. These costs are both direct such as property purchase price, property purchase taxes, registration costs, notary cost, and legal fees, but also ongoing indirect costs such the property maintenance costs, annual property taxes, annual community cost, and most importantly how the property may affect the buyer fiscally. It is recommended that as early as possible in the buying process buyers seek advice from a trusted financial advisor, an experienced accountant, and a lawyer who is familiar with the local tax and property law of Spain and mainly, Sotogrande.
Also, the financial position of the buyer will be of great interest to a vendor and will possibly a factor before negotiations are considered. It will become helpful to be able to provide some “comfort” to the vendor in regard ability to buy. This might be in the form of pre-approval from the bank or a letter of reference from your portfolio manager.
Consideration Tip #3 – Clearly define what you want.
At the end of the day, the property in Sotogrande you are going to buy is for you and your family. Providing a detailed brief of what you want will be extremely helpful not only to the agent of your choice but also for yourself and your family. Easy to say, but as you begin to view properties new considerations will always arise and compromises will be required. Having a document, you can refer to will be immensely helpful. From experience having a scorecard for comparison purposes can also be helpful, particularly when you are getting closer to two or three options.
Consideration Tip #4 – Don’t rush.
The more expensive a property is, the fewer the number of potential buyers. It is very unlikely a Sotogrande villa priced in its millions, will suddenly have two or three interested buyers. TAKE YOUR TIME! After all, you are spending a lot of money, and you should have no regrets. Take your time to negotiate, take your time to ensure proper due diligence, take your time to have a good survey, take your time to ensure it is the right location. Take your time!
Consideration Tip #5 – Get to know the area
Location, Location, Location. Whatever the cost of the Sotogrande property it will have a close link to the area in which it is located. This applies to the current situation and to how changes may affect the area in the future. For example, Sotogrande is currently on an upward curve concerning development. With La Reserva de Sotogrande, the San Roque Golf Club and La Zagaleta (Valderrama II) all developing the luxury sector within or very close to Sotogrande. Be sure therefore to ask many questions on the area if you are not familiar with it, and how it may change in the future.
Get to know the area – Location is very important!
Consideration Tip #6 – Get the property Surveyed.
Get the property inspected by a reputable surveyor. This should be both a structural survey, as well as for appliances, heating systems, air-condition, and any other technologies that may exist in the property, particularly security ones. As well as defects the survey will assist with identifying upgrades you may wish to add on at a later date.
Consideration Tip #7 – Evolution of the property value.
When buying a Sotogrande property, you will have an entry strategy. This could include how it is financed, any exchange rate issues, and maybe even ownership issues to address fiscal or inheritance tax options. There will be, at some point, an exit strategy required when it comes to selling the property. Someone else will be critically looking at the property to buy. Keeping the home “saleability” is important. You have spent a lot of money on your luxury home, and you may want to spend even more upgrading it to your taste. Make sure upgrades are an added value to the bottom line as well as for your enjoyment.
If you have any questions or would like assistance for buying / selling a property in Sotogrande or Marbella, do not hesitate to contact us.
Stephanie (+34 607 465 383)
Charles (+34 607 911 661).
