If you have decided to buy a property in Spain one of the initial issues you need to think about is whether you want to buy a second hand home or a property under construction - off plan.

The main differences between the two types of properties are; the seller of the property, the search process, the price, the time scale of the purchase and there are a number differences in the buying process.

The Seller
Off plan properties are in general sold directly by the promoter/constructor to the public although many promoters allows for re-sale even before the property has been finished, which means that some properties under construction are owned and sold by private or professional investors. Even though an agent intermediates in the purchase you will still have to sign all contracts and make all payments directly to the promoter.
Second hand properties are sold by the former owner and normally through a Real Estate agent, which will take care of the reservation fees and initial contracts - in many cases the buyer will not even meet the seller until they sign the final title deed at the notary's office.

The Search Process
At the moment there are a huge number of new developments taking place all over Spain and as new developments are sold before they are finished there exist detailed information about each promotion including brochures, technical drawings and descriptions, building standards, plans for each property etc. This makes it easier initially for a potential buyer to say (after looking at all the information) if it is interesting to visit the promotion for further information and as there are so many different option nearly everybody can find exactly what they are looking.
The offer of second hand properties is also significant all over Spain. The major difference is the information provided by the real estate agent or the private seller about the property. In many cases you will only find a small text and although there are photos of the property the potential buyer will normally visit many properties that turns out not to be what they had expected.
In general it is more complicated and takes longer time finding the right second hand property. Buyers of second hand properties tend to visit far more different options than buyers of new properties before they find the right property.
Second hand buyers will also have to make sure that the property doesn't have any failures in the structure, the plumbing, electricity etc., which means they will normally visit a potential property at least twice before deciding to buy ir or not.

The Price
It is difficult to compare the price between a property under construction and a second hand home. Apart from the normal factors that influence the price (location, the size, views etc.) you will also have to take into consideration the value of being new (i.e. not having to refurbish the flat before it can be used) and all new developments in Spain includes by law a 10 year guarantee.
Many people prefer buying a cheaper but older property and then refurbishing exactly as they want. For people who like doing this work themselves it is possible to save good money although if you have to pay someone to do it we can recommend investigating the costs of both the labour and materials before buying the property.
Regarding to the price of a new development it is important to take into consideration that the price normally rises during the construction period and is initially set below market value. This is done to attract buyers and investors at an early stage, which will help finance the cost of the construction and will provide security for the promoter/constructor and their creditors.
Another major difference is the possibility of negotiating the final price. When you buy a property directly from the promoter it is normally not possible to negotiate the price and as mentioned the only possibility of getting a better price is to buy at an early stage. When you buy a second hand home you should always try to negotiate the price as sellers are normally ready to lower their price.

Time Scale of the Purchase
Another important difference between off plan and second hand properties is the time scale of the purchase (the time it will take before you have signed the title deed, which makes you the legitimately owner).
If you have the money ready you can buy a second hand property within the time it takes for the former owner to clear the property (if sold unfurnished) and for your lawyer to check all papers and to get an appointment with a public notary to sign the title deed (about 1-2 weeks if necessary).
When you buy a property off-plan the time it takes before you can move into the property depend on when in the construction phase you buy the property, and is for early purchases up to 2-3 years.

The Buying Process
The buying process apart from the time scale is also different for the two types of properties.
When you buy a second hand property you will initially have to sign a reservation contract where you pay down a deposit and/or a private sales contract (a more detailed 'reservation contract' normally used when there is a long time span between signing the reservation contract and the final title deed). Before signing the title deed you will have to pay down 10% of the property price in either one payment or through an initial deposit and thereafter the outstanding of the 10%.
The contracts when buying off plan property will in general be more specific including detailed information about the property and materials used. Furthermore you will have to pay between 10% and 40% of the property price during the construction. Initially you will have to pay a deposit to reserve the property and within a couple of months and upon signing the contract you will have to pay down another amount of 5% to 20%. Apart from this payment there will be some running payments during the construction. These payments are either fixed on dates (i.e months or semesters) or on different stages of the construction (i.e. upon finishing the structure, the roof etc.).
Upon signing the title deed you will either have to pay the full outstanding amount or take over the mortgage offered on nearly all off plan properties (which in general is between 60% and 80%) and paying difference between the property price and the mortgage and previous payments.

Advantages Disadvantages - off-plan Vs. second hand properties