BUY A SECONDARY PROPERTY AT A DISCOUNT

Buy a Secondary Property at a Discount

Purchase your desired secondary property with a 20-30% discount through our Personal Instant Buyer service, which follows the Instant Buyer (iBuyer) company model.

How Do Instant Buyer (iBuyer) Companies Work?

Instant Buyer (iBuyer) companies operate on the principle of immediate and direct property acquisition, aiming to buy properties at 20-50% below their market value. These companies target property owners in difficult circumstances who seek a quick sale. Once a property is purchased at a lower price, they invest in improving it—renovating and upgrading to increase its value by 20-60%. The property is then resold at a significantly higher price, generating profits for both the investors and the iBuyer companies themselves.

How Do We Operate at Global Capital Invest?

At Global Capital Invest, we offer a model similar to that of Instant Buyer (iBuyer) companies, but with a personalized approach tailored to meet the needs of our clients, following these steps:

1. Property Selection

• Choose a property that meets your criteria. You can take advantage of our "property personal shopper" and "Property of your choice" services. Don’t limit yourself in seeking the best deals—our team will ensure you receive a substantial discount.

2. Negotiations with the Seller

• Once we confirm the property you want to purchase, we negotiate with the owner on your behalf. As an iBuyer company, we have the ability to negotiate a price significantly below the market rate. Through our Personal Instant Buyer service, we often achieve discounts ranging from 20% to 30%.

3. Property Purchase

• After negotiating a favorable price, we handle the entire property purchase process, ensuring speed and transparency.

Is it Really Possible to Negotiate a 20-30% Discount on the Property Price?

Yes, it is possible to negotiate a 20-30% discount due to the fact that properties do not have a single fixed price but rather four different price points when you buy with Global Capital Invest.

The Four Price Levels:

1. Listing Price:

• This is the price that owners are hoping to get.

2. Market Price:

• This represents the actual value at which similar properties in the area have recently sold.

3. Buyer Offer Price:

• This is the price buyers are typically willing to pay.

4. Global Capital Invest Price:

• This is our offer—20% to 30% below the market price.

How is the Property Price Determined?

The price of a property depends on various factors such as market conditions, the seller's motivation, and the need for a quick sale. Every seller aims for the highest price, while the buyer seeks the lowest. Price is always a matter of negotiation.

According to statistics from Idealista.com (the largest real estate portal in Spain) and Idealista.it (the largest portal in Italy), buyers often request significant discounts of 20-30%, and sometimes even more. However, achieving these discounts can be challenging without the support of specialized iBuyer companies like Global Capital Invest.

Idealista.com and Idealista.it offer up-to-date information on the discount levels buyers are seeking in different regions. You can explore the statistics for Italy here and for Spain here.

Why Would an Owner Sell Their Property at a 20-30% Discount to an iBuyer Company Like Ours Instead of on the Open Market?

Selling to an iBuyer company can save the owner a lot of time and costs. For example, in Spain, selling a property on the open market typically takes between 6 and 9 months. During this period, the owner must cover ongoing expenses, such as:

• Utilities – Until the property is sold, the owner continues to pay for electricity, water, maintenance fees (if the property is in a gated community), and other services.
• Mortgage Payments – If the property was purchased with a loan, the mortgage payments continue to accumulate, which can further strain the seller’s budget.

Additional expenses that the owner may need to cover if selling their property on the open market include:

• Attorney Fees – if legal services are required for the property sale.
• Broker Commissions – if real estate brokers are involved in the sale process.
• Repair Costs – if the property needs cosmetic or major repairs.
• Capital Gains Tax – applicable if the property is being sold at a higher price than the original purchase price.

On the other hand, selling to an iBuyer company is significantly faster, with the entire transaction typically completed in just 7 days. This eliminates all of the above costs, and the owner receives the net property value without additional fees.

Therefore, although the sale price might be 20-30% below the market value, the seller compensates for this difference by avoiding the expenses and time needed for a traditional sale. This makes selling to an iBuyer company not only faster but also more cost-effective in the short term.

See the table below for a direct comparison between selling through a real estate agency on the open market and selling through an iBuyer company:

Would you provide me with some websites of iBuyer companies to compare if the costs they state correspond to those in your table?

Yes, here are a few websites of iBuyer companies in the United Kingdom:

1. We Buy Any Home

2. The Property Buying Company

3. House Buy Fast

When reviewing the comparison tables of these companies and the comparison table from our company, there are a few differences to consider:

• The table of the first company does not include any potential price reductions after the property assessment.
• The capital gains tax costs are not included in the tables of any of the three companies.
• The asking price from the owner, which is usually higher than the actual market value, is also missing from the tables of the second and third companies.

Due to these factors, companies indicate that they offer about 20% lower prices than the asking price from the owner, but if we add the unaccounted expenses, the final offered price would actually be about 30-35% lower—similar to our comparison table.

Is it possible for the owner to still refuse to sell the property at 20-30% below market price?

Yes, it is possible for the owner to refuse to sell the property at 20-30% below market price. This decision depends on various factors, two of the most important being: their motivation to sell and who the potential buyer is—whether it is a private individual or an iBuyer company. Here are some of the main reasons that could influence the owner's decision:

• Current market conditions: In a strong market with high demand for similar properties, the owner may feel confident that they will sell at a higher price, making them less willing to offer a discount.
• Financial difficulties: When the owner is experiencing financial problems, they may prefer to sell quickly, even at a significant discount, to avoid more serious consequences such as bankruptcy or legal action.
• Presence of other offers: If the owner has received other offers close to or above market price, they may refuse to sell at a lower price.

• Mortgage default: If the owner is unable to make regular mortgage payments and is threatened with foreclosure by the bank, they often prefer to sell quickly at a significantly lower price to avoid greater losses.
• Interest from buyers: If buyers who visit the property express interest during the viewing, even without making specific offers, the owner may conclude that there is high demand for the property, which would make them feel more confident and less willing to make a significant discount.
• Condition of the property: If the property requires serious repairs or maintenance, the owner may be more inclined to offer a discount to avoid those costs.
• Personal issues: Divorce, job loss, or other unexpected events can force the owner to sell the property quickly at a significant discount to cover urgent expenses.
• Urgent need for liquidity: A seller who needs funds quickly, for example, for a new business or another major purchase, may be more willing to compromise on the price.
• Emigration or relocation: When owners need to move quickly to another country or city, they are often willing to sell their property below market value to finalize the sale before leaving.
• Inherited properties: Sometimes heirs have no interest in maintaining or managing an inherited property and prefer to sell it quickly at a lower price to divide the proceeds.

Ultimately, it's all a matter of negotiation. We are professionals in buying properties at 20-30% below market value, and we know how to approach such situations. The key to our strategy is that we are not just negotiating—we are ready to purchase the property immediately. This is crucial because in standard negotiations, when a buyer or real estate agency requests a significant discount of 20-30%, the owner often reacts negatively and may even terminate the discussions. However, when the owner realizes that they are negotiating with an iBuyer company that offers them an immediate deal, they are more likely to consider our proposal seriously and contemplate a price reduction.