Selling properties in Spain/Sotogrande

Selling

Important: The information on this page is only for general advice. No rights can be claimed. We highly recommend you ask your lawyer for the exact costs of your particular sale.

Selling

When you decide to sell your property, you simply need to call us. We will arrange to come to your home, where we will take pictures of your property and talk about the sales conditions. Although, as a Spanish real estate, we are very experienced and will give you an honest opinion about the value of your property we would be happy for you to get an independent quote from a Surveyor.

This way you make sure to receive a realistic sales price for your property. The Surveyor normally charges between 200€ and 400 €, depending on the size of the property for sale in order to list your property we would require:

– A copy of the original purchase deed.
– A copy of the last IBI (Impuestos sobre Bienes Inmobilarios) receipt.
– A copy of the last community fee receipt.
– A copy of the energy certificate.
– A signed commission agreement.

Our fee for selling your property is 5%, plus VAT, of the final sales price.

In order to sell your property quickly you need to help us, by agreeing to set an attractive price, and by keeping your property very presentable at all times during the sales period. When it comes to potential buyers a clean car always sells easier and better than a dirty car!!

Once we have found the Buyer for your property we will negotiate and agree to the sales conditions and price. The Buyer now has to provide a deposit of 10% (if not otherwise agreed). The timing of the sale and signing the title deeds depends now on the Buyer, as he might apply for a mortgage. If he does, the Bank will send a Surveyor to evaluate the property. It will most probably take 2 months minimum to sign at the Notary.

In the mean time, make sure you have all outstanding bills paid on the property, such as Community fees, Property tax, Electricity bills or water bills. You will also need to pay the ” Plus Valía” (Municipality fees) on the property, which can be as little as a few hundred Euros or it can be thousands, depending of how long you have owned the property, how big it is… The best is to consult with your Tax Consultant.

Capital gains tax will need to be paid. The amount will depend on the ownership structure of the property, i.e owned by an individual or a company. We recommend you to consult with your Solicitor on all these matters.

Selling Costs

Selling Costs

In addition to your lawyer’s fees there are the following costs to be considered:

Notary Fees
Whilst Spanish law states that the majority of these fees are payable by the vendor it is not uncommon for these costs to be negotiated to be paid by the purchaser. The fees are based on a scale of the value of the sale and the number of pages of the “escritura de compraventa”.

Plus Valia – Municipal Tax
This is a tax charged by the local municipal government: The tax amount is calculated with a formula based on the “valor catastral” – the value of the land (not the building) of the property and the number of years that land has been owned by the vendor. Payment of this tax is the responsibility of the vendor but if it is unpaid then that liability will pass to the new owner. Therefore it is normally agreed, when the vendor is a non-resident, that the purchaser retains this amount at the time of completion of the sale.

Capital Gains Tax
In 2007 this tax was simplified to be equal to all vendors both resident and non-resident, unless the vendor is a trading corporate entity or a resident person over the age of 65. The present level of capital gains tax is set at 21%. In the case of non-residents, the purchaser is obliged by law to retain 3% of the sales price and pay it directly to the tax authority (Tesoro Público) as credit for the pending tax. In the case that the 3% is greater than the actual capital gains tax payable, the vendor can reclaim this amount.

Commission Rates
Estate agents in Southern Spain will usually charge between 5% and 7% sales commission, plus 21% V.A.T. Noll & Partners SL charges a flat rate of 5%, plus IVA @21%.

Showing Your Property… We want to appeal to the 5 senses!

Showing Your Property

Obviously the property is the main star of the show but if we can sub-consciously appeal to the buyer’s 5 senses we stand a better chance of selling your home for the MAX price quick, fast, and in a HURRY!

Sight – Day time open all curtains so sunlight enters property and if it is evening or night turn on all lights to better illuminate the property and try and have the rooms free from clutter

Sound – Have some light relaxing music playing in the background if possible. My personal favorite is some JAZZ!

Touch – Have the home as clean as possible & allow the buyers to roam freely through the house un-interrupted.

Smell – Have some form of Air Freshener ex. incense, candle, febreze, plugins etc…

Taste – Have some chocolate or candy at front door and offer them a piece when they enter the property.

The Dog – Keep Fido away. Pet lovers will be distracted by your fun pet. For those who do not have pets it may be bothersome.

Children should be seen not heard – This is a new experience for the kids. Naturally, they are excited, but they will disturb the professional flow of the showing. Ask them to remain away from the agent and buyers, to go outside or watch TV.

When the door bell rings – Answer the door as you would for any welcomed guest. The agent will take care of introductions. If there is a situation that needs mentioning, perhaps a sick child in the second bedroom, do so now. You may invite the agent to begin showing the home and then you may excuse yourself.

Low Profile – Discretely remain away from the buyers. As helpful as you wish to be, your presence will be intimidating. They need to be able to discuss the home freely with one another. The agent needs to learn from the buyers how they are responding to your home. Your presence can limit that free communication.

What you should do – Read a book, watch TV, take a walk or continue with a chore. Pick a room and settle down. When they stop to preview that room you may leave, but it is not necessary. After all, they don’t want to feel that they are chasing you around the house. If there is a room you should try not to be in it would be the kitchen. Buyers generally spend more time in the kitchen as they evaluate appliances, counter space, cabinets, etc…

Conversing with the buyers – If you are asked any questions about the neighborhood, schools, etc., answer pleasantly. However, avoid becoming engaged in a conversation. Questions regarding terms of sale should be referred to the agent. If the agent is a cooperative broker and does not have the answers, advise him or her that I, your agent, will contact them.

Inclusions – The listing sheet should clearly identify items that are included and excluded for the offered property. Don’t initiate conversations about other personal property that you may be interested in negotiating. It is rarely a deal clincher, may be distracting, and there will be time to discuss this when the offer is presented.

Let the “PRO” work – As much as you love your home, don’t be tempted into doing the agent’s job. The agent has been working with the buyers and knows what is important to them.

Bidding And Negotiating – Our agents will request all offers in writing. We will pre qualify every buyer and may request a financial statement with the offer.

Since we owe our fiduciary responsibility to you the sellers our goal will be to negotiate the highest price possible keeping in mind not to lose the buyer. With countless transactions and negotiation experience we will guide you through every step of the way making sure you have a successful transaction.

Disclaimer: The content of this document is provided for guidance only, and while every effort has been made by Noll and Partners SL to ensure the accuracy of the information and translations contained, no liability can be accepted for any errors omissions and inaccuracies, or for the opinions expressed herein.