With the Spanish property market recovering, and Spain still being one of the most popular holiday destinations in the world, there are a record numbers of sales despite Brexit.
The Internet has opened up the property market, and has made it easier for you to sell your property privately without the need of an Estate agent.
This Sellers guide will show you how to market your Spanish property without the use of Estate agents, and having to pay their commissions.
Selling your Spanish property privately, is known as For sale by owner.
The first place potential buyers search for properties for sale now days are via the Internet. We give you the exact marketing tools that Estate agents use by advertising on our property portal.
Many other property sales portals charge several hundred Euros or more to list your property on their website.
Here at www.propertiesforsaleinspain.com, We offer you the chance to market your Spanish property for free to 1000´s of potential buyers, saving you thousands in commissions!
The first thing you need to do is register your property on line with us. Potential buyers need to know all the information about the property, and you need to provide pictures of your property. The more people that see your property for sale, the more chance of a sale.
Time must be taken to get clear bright pictures of your property. The main photo of your property is what will entice buyers to look more closely at your villa or apartment. Good quality photos are key! This will help your property stand out against other similar properties to yours that are for sale.
By investing in small cosmetic works, such as light paintwork and freshening up of the property, it can increase the chances of a sale dramatically. Keep things neutral and fresh, and remove personal items. De cluttering and making the property as light as possible are all ways to appeal to the highest amount of potential buyers.
Few clients wishing to buy Holiday homes, want to buy a property that requires too much work. Clients wish to be able to enjoy their newly brought property straight away, or even rent the property out immediately after purchase.
Do your research!
It is key to research the area that your property is for sale in. Search for similar properties in the surrounding areas and compare them to the price you had in mind for your property.
Potential buyers are always looking for value for money. As much as you do not want to under-price your property, over pricing will deter potential buyers and you could miss your best chance of making a sale. If the property looks to expensive, buyers will simply move on to the the next similar property at a more realistic price. Understanding the price of similar properties in your area will help you make an informed decision on how to set your property valuation.
You can add a separate purchase contract for the sale of furniture at this point. Most sales do include all white goods however.
Selling your property privately requires you to get all your property paperwork in order. Many buyers will ask for this information when viewing the property and before making an offer on the property.
If your property is described differently on the Escritura (Deeds), Catastro (where your IBI rates are calculated) or Registro de la propiedad (where a Notea Simple comes from). This can cause problems when it comes to a sale. Plot and build size of properties are one of the most common discrepancies on these documents and if so needs rectifying imeditly.
You will need the following documentation for the sale of your property –
· Title deeds of your property
· Copies of utility bills for the property
· Receipts for the property tax (IBI)
· Copy of your residencia or NIE
· Details of the community Status where applicable
Fortunately your Lawyer and the buyers will be doing most of the work. (See our list of services for recommendations on Spanish Lawyers)
Once the property sales price has been agreed, a reservation fee of around €3000 is paid by the buyer to reserve your property and remove the property from the open market. You will not receive this money until the buyer and their lawyer have done all the relevant property searches, and the next payment of 10% deposit is paid. Once the 10% contract has been signed and the monies paid, if the buyer pulls out of the property sale the 10% is non refundable and you will get to keep the amount.
Having said this if you as the seller decide to renege on the contract, you may have to pay the potential buyer twice the amount of deposit by way of compensation.
You will receive the final payment for your property sale at your local Notary, where your self and the buyer of your property will attend both with your legal representatives.
Payment made to the Estate agent, based on the commission contract you have in place with them. Usually 5% of the property sales price. This can be deducted from, your, as the sellers capital tax bill.
Capital gains tax is payable on any amount of profit made on the sale of your property. If you brought your property for €250,000 and then later sold it for €300,000 you will need to pay capital gains tax on €50,000.
19% tax for the first €6000
21% tax from €6000-€50,000
23% tax from €50,000 onwards
There are exceptions however, if you are over 65 and have lived at the property officially for the past 3 years or more.
· Invoices for refurbishment works on the property
· Notary expenses
· Estate agents fees
· Energy Certificate costs
Income tax provision for non-residents
For all non-Spanish residents that sell their Spanish property, there is a income tax provision or retention of 3%. This goes directly to the Spanish tax office to cover any taxes that need to be covered from the sale. This must be paid within 30 days of the sale of your property.
It is now Spanish law that all property owners must produce an energy certificate if wishing to sell or rent their property. The cost of these certificates depend on the size of the property and can range from €100-€500
This is a tax paid to the town hall, and is based on the increase of land value that the property is built on. There are 3 factors that determine the taxable amount.
· The period of ownership
· Location of the property
· The Cadastral ground value
The taxable amount can be requested from the town hall.