In recent years, as occupied properties have increased in Spain, a curious trend has emerged – more people are buying homes with squatters, drawn by their below-market prices. But is it really a good idea? What should you consider before taking this step, and is evicting squatters straightforward?
The number of homes with squatters for sale is increasing
These transactions are real and on the rise. The number of properties without possession on the market grew by 4.6% in just one quarter, according to a study by idealista.
Many owners lack the time, money or know-how to deal with squatters – who can be aggressive – or the slow justice system, so they put their property on the market.
Because the home comes with squatters – as they are commonly called – the price is lower than usual. This could be a bargain… or a headache. You are buying a problem.
“There is a profile of a specialised buyer, with the economic or legal means – or both – to tackle this issue, and who sees it as an opportunity,” says Santiago Thomás de Carranza, managing partner at Thomás de Carranza Abogados.
Is it a good idea to buy a squatted house?
According to the expert, it all comes down to price and risk. Buying an occupied property often means acquiring it almost sight unseen and usually without a mortgage. In a typical sale, buyers visit the property multiple times, check its condition, and assess potential repairs or improvements.
“When a home is occupied, that is not possible – you cannot access the interior, so you must accept the risk that the property is damaged or needs extensive renovation, which happens often,” explains Santiago.
It is therefore essential that the purchase agreement reflects this. The seller cannot take responsibility for the property’s condition, and this must be clearly stated. This legal and logical assumption of risk is what justifies the lower price.
Before buying, it is also crucial to assess who is occupying the property: a single person, several people or a family? Are there children? This matters because it affects the timeframe. Eviction procedures can take longer if minors are involved, so it is wise to consider this from the start.
“The presence of children has a major impact on timing. If a family with minors or someone considered vulnerable is involved, authorities and judges act with greater caution. Social services often assess alternative housing, and factors like whether the children are in school are considered before authorising eviction. All of this can extend the process,” explains Santiago.
How to buy a home with squatters and evict them
To make the investment profitable, it is essential to know how to act once the property is acquired. “Professionals who specialise in these transactions usually advise avoiding unnecessary conflict. Investors often use part of the money saved on the purchase – thanks to the lower price of an occupied property – to negotiate directly with the occupants. In many cases, they offer financial compensation for a voluntary departure,” explains Santiago.
However, this approach is not always possible. If no agreement is reached, the only option is legal action, which can take one to two years depending on the situation.
“It is vital to weigh the risk against the price. Beyond the purchase cost, you must consider lawyers’ fees, court costs, and, of course, the cost of renovating the property once it is recovered,” advises the lawyer.
In short, these are not transactions to take lightly, though there is supply and demand, and interesting opportunities can arise for those willing to assume the risk.
