Understanding the Role of a Personal Shopper
A personal shopper, traditionally associated with fashion, is now making waves in the real estate market. These professionals specialize in advising clients on making the best property purchases. In the last decade, the role of real estate personal shoppers has emerged as a vital support system for homebuyers, especially with the growing interest from foreign investors in Madrid. Helena Gallardo, president of the Spanish Personal Shopper Association (AEPSI), highlights a common misconception: “When you visit a real estate agency, the buyer is often seen as the client, but in reality, the seller is the true client.”
The Journey of Ángeles Nieto
One of the notable figures in this industry is Ángeles Nieto, the 53-year-old commercial director and partner at Luxury Angeles. Before becoming a personal shopper, Nieto spent 14 years as a real estate agent in Madrid’s most exclusive neighborhoods. Reflecting on her experience, she says, “I realized that the buyer was the most vulnerable party. I had to convince them that a property was fantastic, even when it often wasn’t.” This realization inspired her to transition to a role that was relatively unknown in Spain. “In Anglo-Saxon countries, this role is well-established, and I saw the potential for it here,” she explains.
The Growth of the Profession
In the U.S., U.K., France, and Canada, this role is known as an Exclusive Buyer Agent (EBA). In 2022, an impressive 89% of real estate transactions in the U.S. involved such agents. Upon establishing her business, Nieto created a YouTube channel with 50,000 subscribers, where she shares insights about her profession. “We wanted to modernize this approach because there’s a significant lack of professionalism and training in the industry,” she states.
The First Client and Evolving Demand
Nieto’s journey began in 2019 when her first client, an investor from Atlanta, reached out to her with a budget of 1.5 million euros. Since then, her business has flourished, with an average client ticket of 600,000 euros. Initially, 70% of her clients were residents; however, that trend has reversed, with the majority now being foreigners. “Many clients plan to eventually live in Spain with their families. Most come from countries like Colombia, Ecuador, Argentina, and Mexico,” Nieto notes.
The Impact of Golden Visa Changes
The recent announcement from the government to eliminate Golden Visas has significantly impacted the market, tripling demand as potential buyers rush to secure their investments. This program has allowed over 15,000 foreigners to obtain Spanish residency by investing at least 500,000 euros in real estate, with Chinese and Russian citizens being the most significant beneficiaries. “We received numerous inquiries asking if they needed to hurry,” Nieto recalls, advising her clients to consider buying in Madrid due to its broader market and lower taxes. Valencia and Málaga are also recommended investment options.
The Personal Shopper Process
The process of working with a personal shopper is straightforward but can take up to three months. Everything must be seamless to avoid causing discomfort or frustration for the client. The buyer outlines their desired property type and budget, while the agent visits numerous homes over several months, filtering out those that don’t meet the criteria. Ultimately, they present three or four ideal properties for the client to view in one morning.
Legal and Technical Support
Once a property is selected, the agent prepares all necessary legal and technical documentation. This often includes cost assessments for renovations, nearby schools, and potential neighbor profiles. “Our clients are busy individuals for whom time is invaluable,” emphasizes Giovanni Giacomini, an architect and real estate personal shopper.
Real Experiences: Laura García’s Story
Laura García, a 35-year-old, approached Giacomini after feeling frustrated with traditional real estate agencies. “I felt deceived and couldn’t trust them with the biggest investment of my life. I wanted to be sure we were making a good purchase,” she recalls. After discovering the personal shopper concept online, Giacomini guided her through the process, which she hadn’t even known existed in Spain. “It saved us. We were able to make a great investment without having to become experts in real estate,” she adds. They now live in a 400,000-euro apartment with three bedrooms, two bathrooms, an elevator, and a pool on the outskirts of Madrid.
Building Client Relationships
For Giacomini, understanding his clients and fostering personal relationships is crucial. He accompanies them throughout the process, even until the key handover. Additionally, he offers advice on renovations and design based on his architectural background. He currently faces the challenge of high demand and limited supply, particularly for luxury properties. “Madrid sells itself,” he remarks.
Identifying the Right Fit
On average, Giacomini visits eight properties weekly, but only about 10% are genuinely interesting. His typical clients include couples in their 40s seeking their first home and independent women looking for confidence in their investment decisions. “My job is to broaden their perspective and provide rational guidance during the purchase. Often, impulse decisions can lead to disappointments,” he explains.
The Demystification of Personal Shopping
Gallardo, president of AEPSI, emphasizes that only 11% of their clients purchase properties valued over 500,000 euros. “We don’t want to be seen as an elitist service,” she insists. Despite having many foreign clients, an increasing number of Spaniards are also seeking the assistance of personal shoppers to buy their first homes. “Currently, 7% of transactions in Spain involve this role,” she elaborates.
Growing Awareness Among Clients
Promoting personal shopper services is becoming more straightforward, particularly among Latin American clients who are familiar with the concept. “We assist them from a distance, acting as their eyes and legs here,” Gallardo states. She often advises clients looking at oversaturated markets, like Salamanca, to consider other excellent neighborhoods.
The Importance of Trust in Real Estate
Trust is paramount in this profession. “It’s vital to have confidence that the person helping you is looking out for your interests. Blind investments are a mistake, and it’s not enough to simply browse real estate websites; you need to know how to search effectively,” Gallardo stresses. According to the association, over 100 companies now offer personal shopper services, reflecting the growing demand for this vital role in the Spanish real estate market.