Buying from a private seller or a developer: key differences

When you start looking for a home on the Costa Blanca, the options quickly split into two worlds: buying from a private seller (resale) or buying from a developer (new build). The product is different, but so are the taxes, guarantees, risks and negotiation dynamics. Understanding these differences before your first viewing will help you know exactly what you are buying — and what protection you have if something goes wrong.

The product: what you buy in each case

Resale (private seller)

You buy a property that has already been lived in. It may have years or decades of use, previous renovations (or the need for them) and a community of owners track record. In return, it is usually in an established location — neighbourhoods with services, schools, transport and shops — and you can move in the day after signing.

New build (developer)

You buy a brand-new property built to current energy efficiency, accessibility and safety standards. The quality is usually higher: modern insulation, thermal-break joinery, aerothermal systems, latest-generation appliances. In return, it may be in a newly urbanised area (without mature services) and, if you buy off-plan, you will wait 18 to 30 months for the keys.

Taxes: ITP vs VAT + AJD

This is one of the most significant differences for your budget:

• Resale: you pay ITP (Transfer Tax). The rate varies by autonomous community; in the Valencian Community it is 10 % of the deed price.
• New build: you pay VAT (10 %) on the sale price, plus AJD (Stamp Duty), which in the Valencian Community is 1.5 % of the deed value.

In practice, new builds cost slightly more in tax (10 % + 1.5 % = 11.5 %) than resale (10 % ITP). The difference is not enormous, but it is worth factoring in when comparing budgets.

Legal guarantees

Here the difference is substantial and clearly favours new builds.

New build: triple guarantee by law

The Building Regulation Act (Ley 38/1999) requires the developer to be liable for defects with three guarantee periods:

• 1 year: finishing defects (paint, mouldings, cladding, interior joinery).
• 3 years: habitability defects (damp, insulation problems, failures in plumbing, electrical or climate control installations).
• 10 years: structural defects (foundations, load-bearing structure, elements compromising building stability). Covered by the mandatory ten-year insurance (seguro decenal).

Protection of stage payments

If you buy off-plan and pay money before completion, those amounts must be secured by a bank guarantee or surety insurance. If the developer goes bankrupt or fails to deliver, the buyer can recover everything paid plus legal interest. This protection is mandatory by law — distrust any developer who does not offer it.

Resale: no specific legal guarantee

When buying from a private seller, there is no structural guarantee or ten-year insurance. The property is sold as is. The seller is obliged to disclose hidden defects they are aware of, and the Civil Code gives you six months to claim for hidden defects that were not evident at purchase. But proving the seller knew about a defect and concealed it is complicated and costly.

This is why, with resale properties, it is essential to arrange a technical inspection before buying — especially for older homes — and to request complete documentation: nota simple, energy certificate, community certificate and habitability licence.

Negotiation

With a private seller

Negotiation is direct and personal. The asking price is set by the seller, often with a negotiation buffer built in (5-10 %). You can argue with comparables, defects, bank valuations and time on the market. The personal touch matters: the seller may prefer to sell to a buyer who inspires trust, even if the offer is slightly lower.

With a developer

The price negotiation margin is more limited because prices are calculated on actual construction costs. But there are other negotiable variables: finishing quality (kitchen, bathrooms, flooring), inclusion of parking or storage, layout customisation (if construction has not advanced far enough) and instalment payment terms.

Developers are more flexible at the start of marketing (they need sales to secure construction financing) and towards the end (when the last units remain and they want to close the project).

The purchase process

Resale

The typical process is: viewing → nota simple → negotiation → arras contract → deed before notary. The period between arras and deed is usually 30-90 days, enough to arrange the mortgage and gather documentation.

New build

The process has more stages: reservation → private purchase agreement with payment schedule → stage payments during construction (protected by guarantee) → completion → first occupancy licence → deed and key handover. The total timeline can be 18 to 30 months if buying off-plan.

Financing

Obtaining a mortgage is generally easier for new builds: the property is new, has a high energy rating, and the bank knows it meets all current regulations. The valuation usually matches the purchase price.

For resale, the bank may value the property below the asking price — especially if renovation is needed or the energy rating is low. This can affect the financing percentage you obtain.

Specific risks

Risks of buying from a private seller

• Undisclosed hidden defects (damp, pests, structural problems).
• Undetected charges (mortgages, liens, community debts).
• Actual floor area smaller than registered.
• Works carried out without a permit (extensions, enclosed terraces).

Risks of buying from a developer

• Delivery delays (months or even years beyond the projected timeline).
• Final finishes inferior to the specification in the contract.
• Developer insolvency (the bank guarantee protects, but the recovery process can be lengthy).
• Discrepancies between the sales plans and the finished property.

Which suits you?

There is no universal answer. The choice depends on your priorities:

• If you prioritise established location and immediate availability: resale.
• If you prioritise energy efficiency and legal guarantees: new build.
• If you prioritise customisation: new build off-plan.
• If you prioritise entry price: it depends on the area and the state of the market — in some parts of the Costa Blanca resale is significantly cheaper; in others, new builds compete on price.

What does not change in either case: the need to verify documentation, request the nota simple, consult a lawyer if in doubt, and never sign anything without understanding exactly what you are taking on.

Frequently asked questions

Is it safer to buy new build than resale?

Legally, new builds offer more protection: three-year and ten-year guarantees, plus guaranteed stage payments. But resale can be equally safe if thorough checks are carried out (nota simple, technical inspection, certificates). The difference lies in who bears the responsibility for verification: with new builds, much of it falls on the law; with resale, it falls on the buyer.

What tax do I pay in each case?

Resale: ITP (10 % in the Valencian Community). New build: VAT (10 %) + AJD (1.5 % in the Valencian Community). New builds cost slightly more in tax (11.5 % vs 10 %).

Can I renovate a resale property and get a guarantee?

If you commission a comprehensive renovation with an architect and a builder, the Building Regulation Act may apply to the renovation works: 1 year for finishes, 3 years for habitability, 10 years for structure (if affected). But this depends on the scope of the renovation and whether it is carried out with a building permit.

What happens if the developer goes bankrupt before delivery?

If the stage payments are properly guaranteed (bank guarantee or surety insurance), the buyer can claim a full refund plus legal interest. The guarantee is enforced with the financial institution that issued it. Without a guarantee, recovering the money is far more complicated and depends on insolvency proceedings.

Is it better to buy off-plan or wait until the property is finished?

Buying off-plan can save 10-15 % on the final price if the market is rising, but you assume the risk of delays and of differences between what was promised and what is delivered. Buying with construction completed eliminates those risks: you see exactly what you are buying, but the price may be higher and the choice of properties more limited.