In the Spanish real estate market, there is a growing trend in the sale of occupied properties. Although the phenomenon of house squatting is limited in Spain, many property owners who have experienced this situation end up choosing to sell their properties.
Selling an occupied property presents a challenge for owners, who must offer a discount attractive enough to find buyers willing to acquire a property under such circumstances. According to experts in the real estate sector, discounts usually range from 50% to 70%.
However, these types of transactions come with certain risks and difficulties. First, the buyer acquires the property without being able to visit it beforehand, which means not knowing its condition and the costs of possible renovations. Additionally, banks will not finance the purchase of an occupied property, so the payment must be made in cash.
Once the property is acquired, the new owner faces the challenge of evicting the illegal occupant, a legal process that can be long and costly. Some investors choose to negotiate with the squatters by offering them financial compensation to vacate the property.
In this scenario, the main interested parties in acquiring an occupied property are usually investors and auction bidders. For them, these transactions represent an investment opportunity, especially if acquired through a public auction or at a price that is around 60% of the market value.
It is important to note that the purchase of an occupied property also entails the payment of taxes, using the cadastral value of the property as a reference.
In summary, the sale of occupied properties can be an opportunity for brave investors who are willing to take on the risks and challenges associated with this type of transaction. If done cautiously and with proper legal advice, it can result in a profitable long-term investment.