Selling a property
Selling a property in Spain, means that there are a number of questions that have to be addressed.
– Which price can I expect for my property?
– With whom do I want to collaborate regarding the sale?
– Do I want a quick sale or can I wait?
– How can I prepare my property for a sale?
– How do I make it easier for my agent to sell my property?
– Where do I go from here?
Which price can I expect for my property:
At this stage it might be a good idea to remind yourself about the price you paid for your property (excluding sales costs).
Subsequently it might be a good idea to have the property evaluated by a professional Spanish surveyor (Tasador). Spanish property valuers actually do quite a thorough job, and they are obliged by law to follow a strict set of evaluation rules.
He must evaluate the property in a number of different ways.
Listed below are a number of these:
Maximum legal value:
The maximum sales price of a property, which is subject to the controls of subsidised housing.
The total required investment to reconstruct the property with the same characteristics. The physical and functional depreciation of the property are variable and must be taken into account in the calculation.
The net value that could be expected to be achieved by a seller for the sale of the property at the time of the valuation, by means of proper marketing and assuming that there is a ready, willing and able purchaser. It also assumes that both the seller and purchaser are acting under their own free will.
Calculating market value:
The legislation also defines the distinctive methods that can be used to calculate the market value: Comparative market analysis, fixed residual value, and capitalization of the current income yield. Other methods such as the dynamic residual value and the capitalization of projected income yield are more complex, since they introduce the parameter of time.
Comparative market analysis
This is based on the principle of substitution, in which the value is calculated from the recent sales of 6 properties with similar characteristics.
Actually, an official appraisal of the property is a good marketing tool, since it is needed in any case in connection with a mortgage application.
The cost is a few hundred Euros – well spent.
Having the above in mind will give you a good indication of the present value of your property.
With whom do I want to collaborate regarding the sale:
You can choose to sell your property all by yourself, or you can choose to work with one or more agents that you trust.
Let it be said right away: Selling a property is not an easy, straight forward matter in Spain. Therefore we recommend you to seek professional advice from a reputable and trustworthy resident real estate agent. It is paramount that your agent has local experience and is physically present here.
Agents commissions vary from agent to agent, but normally it will be between 5 – 7 % of the sales price plus V.A.T. of 21 %.
Consider employing a good “Head Agent” in stead of giving your property to a number of agents. It is here as anywhere in life: If you want results you will need to follow up on the people who are supposed to do the job, and you must be careful about who you appoint.
What´s the idea of appointing a “Head Agent”? The idea is that this agent is YOUR direct partner in the sales process. You only need to talk to him. He, on the other hand, will charge you a little more (typically instead of 5 % he will charge 7 %).
Why is that? The reason is, that he, at the same time commits himself to market your property with all his professional networks and to offer them (and that is the essence of the Head Agent idea) their normal 5 % commission instead of what is common practice amongst agents, a 50 /50 % split of the normal 5 % commission. You can imagine how that will boost their interest to make extra effort in selling your property. The extra 2 % is well spent.
This is a way of marketing properties that we have found very efficient.
Please contact us today to know more about how we can strengthen the visibility of your property in the market.
Do I want a quick sale or can I wait:
This is a question you need to clarify with yourself before contacting an Agent. The answer to that question obviously has a great impact on your agents advice on which price should be your asking price.
Realistic price – quicker sale. That’s an inevitable fact !
It’s all about finding the best solution for you, in whatever situation you are at that moment. Therefor you should be open to listen to the advice coming from your Agent, even though you may not agree with his evaluation at that moment.
It might be a good idea to give it a day or two before you dismiss your Agents advice. Give it a good thought and be honest with yourself. Do you have some really solid arguments for your position ? Or do you disagree simply because you would like to earn a bit more from the sale ? After all, don’t you trust your Agent l ? Or are there some other reasons?
To cut the story short; if the asking price is unrealistically high in the present market – then the likelihood of a sale is limited.
Try not to hurt yourself down the line by making the wrong decision at this important stage.
How can I prepare my property for sale:
If you know your home has got faults – have them addressed. Don’t try to hide them, it may backfire later on.
If there are things in your home and/or garden that irritate you, then there is a good chance it will also irritate a prospective buyer.
Again, have it addressed – if possible.
Obviously, a new painted home and a well maintained garden is easier to sell than a neglected property. You only have one opportunity to make a good first impression.
It shows when a property has been prepared for a viewing appointment. It doesn’t take much to make sure that the house is nice and tidy for the viewing, but it makes a profound difference.
In general, put yourself in the viewers shoes and look at your property with a buyers eyes.
How do I make it easier for my Agent to sell my property:
Make sure that all documents on the property are ready when your Agent arrives to list it. This is in your own interest as Spanish law prohibits the Agent to publicly market your property before he is in possession of all relevant documents i.e. the Deeds (Escritura) or “Nota Simple”, Property Tax receipt etc. In recent years many Agents have faced heavy fines for this reason. Help him to get started selling you property ASAP.
Easy access – easy viewing and hence a greater possibility of selling your property.
If possible, remove pets from the house before a viewing. Remember, many people are allergic to animals, some are afraid of them and others simply don’t like them.
Make sure the property is well ventilated, curtains are drawn in all rooms and/or shutters are open. A house with fresh air and plenty of light makes a positive impression on the buyer.
In general, regard the viewing preparation as a staging – it does work.
Be prepared to go through quite a number of viewings before your property is sold. Clients are not always punctual, and you will also see cancellations along the way. In other words, the selling process can be a bit stressful – but try not to take it out on your Agent, he is working in your best interest.
Where do I go from here:
If you would like to engage in more detailed conversations regarding your sale, please give us a call or send us a mail, and we will be happy to provide you with further advice on the best way of selling your property.