In this blog linked to F&B REAL ESTATE INVESTMENTS, we have always said that we accompany our clients throughout the process of a real estate transaction, but what exactly do we mean by that? 

Before answering this question, we have to say that there are two types of “seekers”: those who decide to follow their own instincts and take on the management themselves, or those who do not want to take the risk and opt for the help of professionals. 

It is true that we live in a culture of self-help books and do-it-yourselfers, with hundreds of apps or advisors, often well-meaning family members or friends and supposed experts who post all kinds of recommendations on the Internet and social networks. This information is often false and contradictory. The influence of these people can have many effects on the fabric of our society and can even become a widely accepted trend. 

Umberto Eco said:

It is not the news that makes the newspaper, but the newspaper that makes the news“. 

At a time when most digital or printed publications are fake news, unverified false news often with obscure political, ideological or commercial agendas, we cannot believe everything we are told.  It is best to find out for ourselves what is best for us, and to be sure that what we are being offered is truly reliable. With this in mind, at F&B we are always ready to answer any questions you may have and to provide evidence as to why a property transaction requires the advice of a dedicated and reliable team of professionals. 

From the moment someone comes to us for the first time until the final purchase, sale, transfer or rental of a property, we accompany them throughout the entire process, from the first minute of selection, administrative management, consultations with official bodies, on-site visits to the selected property, databases, contacts, telephone calls, consultations with banks, verifications of all kinds, including those relating to the energy certificate or community costs, possible improvements or renovations, etc. ….

But let’s start at the beginning:

The place

Remember that in the Principality of Andorra we have no less than seven parishes or districts, each with its own peculiarities:  Canillo, Encamp, Ordino, La Massana, Andorra la Vella, Sant Julià de Lòria and Escaldes-Engordany, each with its own attractions that make it unique.

The first choice is undoubtedly the location. Let us assume that this is the starting point for everything else: accessibility, proximity to important services such as doctors, schools, workplaces and shopping centres, but also price.  So we should ask ourselves: what are we looking for?

It is always good to think long term, especially when it comes to commuting: how many cars will I need, how far will I have to travel each day just to go to the supermarket, how will this affect petrol, maintenance or wear and tear on the vehicle?

Previous consultations

Important information about the property is, for example, information from the Land Registry about the ownership and encumbrances of the property.  In addition, other aspects should not be overlooked, such as taxes.

The buyer is responsible for paying property tax, which is divided into two parts. One part is paid to the Town Hall of the town where the property is located and the other part is paid to the Government of Andorra. The part that goes to the government is called “Impuesto de Transmisiones Patrimoniales”.

The value of the total tax is 4% of the value of the property. It is then divided into two parts.  The administration is advised and accompanied by estate agents, but must be carried out before a notary. Notary fees range from €600 to €1,200, which is a one-off payment.  In addition, 0.1% of the value of the property is added to the final sale price.  If the property is new, the following information is also required:

  • Name or company name of the developer.
  • Layout of the property and description of the building.
  • Occupancy certificate.
  • Town planning qualification.

Our experts check the condition of the building, the electrical installation and infrastructure, whether the building is registered with the utility companies, what the electricity costs are likely to be, and check with the local authorities whether there are any future urban development plans that could affect the new property.

Can you imagine doing all that on your own? At F&B, we have been involved in successful property transactions for almost forty years. The decision, and often the need, to buy a new home can be a daunting task for those unfamiliar with the sector and going it alone. 

In this post, we have given only a few examples, but the administrative and follow-up work can be exhausting and annoying if you do not have access to the professional experience of real estate agents who are willing to work on your behalf. 

Home insurance

The law requires you to insure your home if you have taken out a mortgage, and even to include the existence of the mortgage loan in the policy, since the property you are buying is in itself the guarantee for the loan, so it is imperative to maintain its value.  It is also highly advisable to take out home insurance to cover all eventualities such as water leaks, power cuts, fire and even explosions that may affect the structure such as walls, floors, installations and even the furniture. 

Home insurance is divided into two parts. 

The building: The building is the value of your home in terms of structures or fixed installations (walls, ceilings, floors) that could be affected by damage. 

The contents: This is all the valuables contained in the insured property (jewellery, furniture, clothes, electrical appliances, food, technology, etc.). A good home insurance policy covers damage caused by both loss and theft. The law distinguishes between burglary and robbery and takes into account the security measures taken by the owner, such as locks, grilles, alarms or armoured doors.

Effective insurance also covers:

  • Accidents in the home that may require medical attention. 
  • Homeowners insurance: this covers, for example, damage caused by falling from the balcony or onto the public highway and causing damage to property or personal injury. 
  • Family and Pet Liability: This covers possible damage to property or third parties caused by people living in the home, inside or outside the home. For example, by a dog or a child playing a prank in the street. 

At F&B REAL ESTATE INVESTMENTS, we can help you choose the best insurance for your home and family. Our service does not end with the sale; it is for the long term because we want you to be happy and comfortable. 

We will always respect your decision about your personal approach, but remember, we are here to help.