Buying a property in Fuengirola or on the Costa del Sol is an important decision. Once you find a property that suits your needs and your budget, you reach one of the most decisive moments of the process: making an offer to the seller.
Many buyers focus solely on how much they want to pay for a property. However, price is not the only factor in a negotiation. The security of the transaction, the buyer’s financial position, the timescales and how serious the proposal is can also influence the owner’s decision.
At Fuengirola Estates, an estate agency based in Fuengirola and specialising in the Costa del Sol property market, we know that a well-prepared offer can make negotiations easier and help a proposal stand out from others.
In this article we explain what making a firm offer means, why it can be useful to back it with a deposit, and what you should check before committing to buying a property. If you are an international buyer, you may also find our complete guide to buying property in Spain as a foreigner useful.
1. What is a firm offer to buy a property?
A purchase offer is a proposal that a buyer makes to the seller to acquire a property at a set price and under specific conditions.
It normally includes information such as the price offered, the method of payment, the expected timescales for the sale and any conditions that matter to the buyer.
An offer can be made verbally, but putting it in writing creates a record of the conditions and makes it easier for the seller to assess.
When we talk about a firm offer, we mean a proposal that is serious, clearly defined and backed by the buyer’s genuine ability and willingness to go ahead with the purchase if the agreed conditions are met.
This does not mean that every offer is automatically irrevocable or binding. Its legal effects depend on how it is worded, the conditions it includes and the applicable law.
2. Why can an offer backed by a deposit be more convincing?
Imagine two buyers interested in the same flat in Fuengirola:
- The first says verbally that they would be willing to pay €350,000, but has not yet made a formal proposal or set out any timescales.
- The second makes a written offer of €345,000, shows that they have the necessary funds and is ready to pay an agreed amount as a reservation deposit, under clear conditions.
Although the first buyer is offering more money, the seller might also weigh up how secure and viable each transaction is.
A well-documented offer backed by a deposit can show that the buyer is ready to move forward, provided that the amount, the conditions and the method of payment are appropriate.
Its possible advantages include:
- Greater credibility: the seller may see that there is genuine interest and a clear intention to buy.
- More clarity: the price, timescales and conditions are set out from the start.
- Less uncertainty: the transaction can progress more easily if the paperwork and financing are in place.
- A stronger negotiating position: a clear, viable proposal can be attractive even when it is not the highest offer in financial terms.
However, a deposit on its own does not guarantee that the seller will accept the offer. The price, the conditions and the circumstances of the transaction remain decisive.
3. Where can the reservation deposit be held?
In a property purchase, the amount paid as a reservation deposit can be handled in different ways, depending on what the parties agree and the conditions of the transaction.
In some cases, it can be paid into the client account of the buyer’s lawyer, who will act in line with their instructions and the agreed conditions.
In others, it may be agreed that the amount is paid to the estate agency, provided that the agency is authorised to receive it and that the purpose of the money, how it is held, and the conditions for returning it or putting it towards the price are properly documented.
What matters is not only who receives the money, but that there is transparency and security for all parties.
Before making a transfer, the buyer should check:
- The identity of the recipient and who holds the account.
- The exact purpose of the deposit.
- The conditions for accepting or rejecting the offer.
- Whether the amount will be deducted from the final purchase price.
- In what circumstances the amount will be returned or may be kept.
- What happens if the seller rejects the proposal or if the purchase cannot be completed.
It is always advisable for these conditions to be set out in writing and for the buyer to keep proof of the transfer.
Important: paying a reservation deposit does not automatically mean that the money is refundable or that the buyer can withdraw without consequences. Everything will depend on the terms agreed and the documents signed.
4. Is it better to pay the money into the lawyer’s account or the estate agency’s account?
There is no single solution that suits every transaction. Both options can be used, provided they are set up correctly and the relevant legal and professional obligations are met.
Deposit handled by the buyer’s lawyer: This can be a good option when the buyer wants independent legal advice from the outset.
The lawyer can review the offer, explain its consequences, check the paperwork and set the conditions for holding and, if applicable, returning the funds, in line with their professional instructions and the agreements that apply.
This option can provide peace of mind, especially for international buyers or those buying a property in Spain for the first time.
Deposit handled by the estate agency: This can also be a practical option when the agency is actively involved in the negotiation and is authorised to receive the agreed amount.
The agency should clearly identify the money received, issue the corresponding receipt and document the conditions under which it is managed. The buyer should know whether the funds are kept separate from the company’s own funds and what procedure will be followed if there is a disagreement.
Which option should the buyer choose? The decision should be based on legal certainty, transparency, the conditions of the deposit and trust in the professional handling it.
If there is any doubt about the return of the reservation deposit, the obligations the buyer is taking on or the consequences of withdrawing the offer, it is advisable to get independent legal advice before transferring the money.
5. Can an offer with a deposit help you get a better price?
Yes, it can strengthen your negotiating position in certain circumstances, but it is important to understand why.
The seller is not always looking only for the highest price. They may also take into account the time needed to complete the sale, the certainty of receiving the money, the buyer’s financial standing and the chance to avoid further negotiations.
An offer somewhat below the owner’s expectations can still be of interest if it is well structured and sets out clear conditions.
For example, a buyer who has the funds available, makes a formal proposal and accepts a reasonable timetable for the sale may inspire more confidence than another buyer whose financing has not yet been arranged.
This can open the door to a more favourable negotiation, although there is no guarantee that the seller will lower the price.
To improve your chances:
- Research the prices of comparable properties.
- Set your maximum budget before you negotiate.
- Make an offer that is in line with the market and the condition of the property.
- Show proof of your financial means where appropriate.
- Set realistic timescales.
- Explain the conditions of your proposal clearly.
- Avoid committing to pay amounts you are not prepared to take on.
The best negotiation is not necessarily about offering the lowest amount, but about making a proposal that is attractive to the seller and right for your financial situation.
6. Before paying a reservation deposit, protect your interests
Although an offer backed by a deposit can be useful, it is best not to rush.
Before transferring any money, it is advisable to verify the owner’s identity, check the property’s status at the Land Registry and make sure that the person receiving the funds is authorised to do so.
It is also important to be clear about which document you are signing. A reservation, an accepted purchase offer and an arras contract (private purchase contract) are not necessarily the same thing and may have different legal consequences.
In particular, if signing an arras contract is being considered, the obligations of each party and the consequences of a possible breach should be reviewed carefully.
If the purchase depends on a mortgage, you should consider how this will be documented and what will happen if the financing is not obtained. You should not assume that the deposit will be returned automatically.
For foreign buyers, having a lawyer who knows the Spanish property market can help you understand the documents, timescales and obligations before you commit.
7. The importance of an estate agency with local experience
In a property negotiation, knowing the area and the circumstances of the property can make an important difference.
In Fuengirola and on the Costa del Sol, every seller has their own priorities. Some want to complete the sale within a certain timeframe, while others may place more importance on the price or the payment terms.
An estate agency with local experience can help you better understand the context of the negotiation, prepare a well-presented offer and keep communication with the owner clear.
At Fuengirola Estates we support buyers throughout the search, the offer and the negotiation, making communication between the parties easier and helping to organise the steps needed to move towards the sale.
Our aim is for you to be able to make informed decisions, understand the conditions of each transaction and make a proposal that reflects both your interest in the property and your real buying power.
Thinking of buying a property in Fuengirola?
Finding the right property is only the first step. Preparing a well-structured offer and negotiating with a clear strategy can help you move forward with greater confidence.
If you have found a property in Fuengirola, Los Boliches, Torreblanca or Mijas Costa and would like to make an offer, at Fuengirola Estates we can guide you through the process and explain how the proposal would be handled.
Contact our team to find out about the properties available and to receive information on the next steps for buying on the Costa del Sol.
Fuengirola Estates — With you from the first viewing to the negotiation of your new home.
