Bank Repossessed Property for Sale in Mallorca
The Mallorca property market continues to be one of the strongest across Spain Europe with both Mallorca locals and expats buying villas, apartments and villas.
Not all property owners in Mallorca are able to make their mortgage payments which has led to a dramatic increase in bank repossessions for sale inMallorca and the surrounding areas.
If you are searching for bargain property in Mallorca you’ll be sure to find something to both your taste and budget. However, before you start looking for bank repossessions for sale in Mallorca there are some things to consider.
Distressed Property in Mallorca
A property sold in Mallorca in distress is also known as a distressed sale. The situation occurs when a property must be sold quickly. A distressed sale in Mallorca typically results in a monetary loss to the seller.
The property is put up for sale due to economic issues incurred by the owner and the property must be sold for a lower price. The money made from the sale is often used to pay off debts.
If you want to purchase a repossessed property for sale in Mallorca, you should note that the property may be in a poor state of repair.
How does repossessed property for sale in Mallorca work?
Property owners in Mallorca who can no longer pay off their mortgage may choose to sell their home, apartment, or commercial property.
A distressed property sale in Mallorca often occurs due to foreclosures, divorces, or relocations. By selling the property, the owner is able to pay off their mortgage.
If you plan to purchase a distressed property in Mallorca, you are likely to buy itat a significant discount to the current market value. However, if the sale was done on short notice or in a hurry, repairs to the Mallorca property may not have been completed.
Finding Repossessed Property for Sale in Mallorca
Many local banks in Mallorca have a significant number of bargain properties for sale, in various states of repair and at all price ranges. The Spanish banks in Mallorca don’t tend to do anything to maintain the properties on their books,. Some will be dilapidated and many have had no occupants for years.
When looking for repossessed property for sale in Mallorca for cheap properties it’s important to be fully advised. In the bank repossessions market forewarned is forearmed. It’s a case of finding the diamond in the rough… that property in Mallorca that hots the sweet spot between renovation expenses and future value in a rapidly rising market.
Banks that repossess Mallorca properties typically use a realtor to sell the property who will receive around 2% for selling the property.
This commission is significantly less than many real estate agents receive for selling other properties in Mallorca and many potential investors find they don’t even get shown the huge amount of repossessed property for sale in Mallorca.
Repossessed Property for Sale in Mallorca
Physis Realty in Mallorca have access to on and off market bank repossessions. They tend to operate at the mind to higher level of the market so have already done extensive due diligence on their distressed property portfolio.
Physis Realty also represents clients at the $million+ level find bank repossessed properties for sale in Mallorca. These properties are usually kept off market for reasons of discretion and speed of sale. Ultimately, the listing of these exclusive Mallorca properties may downgrade an entire real estate area so the preferred method is by discreet and off market promotion.
Repossessed property for sale in Mallorca can also occasionally be sourced directly from the bank, although do be sure to engage the services of a local translator if you are not proficient in Spanish.
Repossessed Property for Sale in Mallorca
