The selling process – Holmes Property Sales
The Asking Price
To successfully sell your property, the first thing you must consider is that the real estate market is very competitive. For a purchaser to make his mind up and proceed in buying a property, he will always consider several factors about the property, such as, location, floor plan of the property, quality of construction, orientation, how it is maintained and other less important factors. But the most dominant factor is the PRICE! The price will always be what makes or breaks a sale!
The question is how to fix this important sales price? Only by having the necessary experience and information can anyone arrive at what the selling price should be. Most times, asking prices are misleading, as vendors may ask but not get. It is therefore essential to know what has been sold and at what price. And to know this, only the most experienced agents will have this extremely valuable source of market information.
We at Holmes Sotogrande take great care in arriving at the price your property should be put at. We realise that a property is a very important part of anyone’s assets, and for this reason, we will normally not provide the vendor with a sales price until we have seen the property and carried out the necessary price comparisons with other similar properties, before arriving at the price.
It is also important to consider how established and big your agent is. As the more established agents will normally have sufficient properties in their books and are more concerned with their reputation. Whereas the smaller agent with a lack of properties will tend to over value properties in order to get much-needed listings.
Many vendors feel that by over-pricing their properties, they can assure themselves of securing the best price for their property. However, over-valued properties only serve in driving a possible buyer away! When a buyer perceives that the property is over-priced, he will not even visit it. As a result, the much-awaited offer that the vendor hopes to get never materialises! And the property sits on the books of the agent for too long a period, which only serves in devaluing the real price of the property, as purchasers perceive it as an un-sellable.
Choose A Reputable Agent
A reputable estate agent will have your best interests at heart and will advise you on the realistic sales price and ways in which you can increase the saleability of your property. Holmes Property Sales S.L., the longest established agent in Sotogrande, is a specialist in Sotogrande and the surrounding area and will provide you with impartial professional advice. Once you choose to sell with Holmes Property Sales, your property will receive excellent exposure both locally and internationally through our network of reputable agents.
Complementing this network of agents, is our association with the LPA (The Leading Property Agents in Spain) of which Holmes Property Sales, S.L. is a founder member. Through the LPA you can rest assured that your property will be properly represented among the best agents in Sotogrande and on the Costa del Sol.
In addition, your property will receive exposure on our website and through our local and international marketing in sales-proven newspapers and magazines.
Actions To Help Sell Your Property
As most purchasers are in town for short periods and many times visit an agent’s office without appointments but yet expect to view properties at short notice, it is of vital importance to facilitate access. This will guarantee the best exposure of your property to all qualified clients. Small Repairs
If a repair is small, do it. Otherwise the purchaser will always use this as an objection to rationalise his low offer. Remember showing the property in a clean, tidy and well-maintained manner may cost you less than the discount you may need to give to the purchaser.
Know Your Net Figure
Carefully review with your agent and your tax consultant what your net proceeds will be should the sale of your property come about. Be fully aware of your tax situation and what the other expenses of the sale are before placing your property on the market. In this way you will be able to negotiate intelligently and quickly.
Definitely a second home is not a necessity and the purchaser normally attaches a lot of emotion to the purchase. For this reason, it is essential for the vendor to negotiate quickly and decisively, as emotions can switch rather quickly.
Be Ready to Sell
In order to close the deal quickly, it is important to decide who your lawyer will be and who will sign the contract of sale and the Title Deed. If the vendor is away for periods in excess of 2 weeks, it is recommended that a power-of-attorney be given to the lawyer in order that he may represent the vendor in case of a sale materialising.
If your intention is to sell your property furnished, make it clear from the very beginning as to what is to be left and what is not. When a purchaser is made to believe an item is included and then is informed that it is not, it will without doubt bring ill feeling and could cause the breakdown of negotiations. Therefore it is recommended that an inventory be given to the agent upon placing the property on the market.
Exclusivity or Non-exclusivity?
As a vendor, it is up to you whether you choose to give the exclusive rights to sell your property to a sole agent or not. If you are away for extended periods of time or do not want to be involved in coordinating the various agents, an exclusive listing may be the best option. Remember, with many agents representing your property, misunderstandings on who is owed the sale commission may surface. On an exclusive listing, it is the agent’s responsibility to handle all coordination among agents and the vendor only pays that agent.
Granting exclusivity to one agent has other direct benefits, such as, encouraging him to heavily promote and sell your property. In this manner, the agent will feel more committed to offer certain services, which he normally will not do for non-exclusive listings. But again it is imperative to note, that the agent will only value an exclusive listing if he considers the sales price of the property to be correct.
In addition to your lawyer’s fees there are the following costs to be considered:
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 is a formula based on the valor catastral – the value of the land portion of the property and the number of years that land portion has been owned by the vendor. 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 this amount is retained by the purchaser 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 or 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.
Estate agents in Southern Spain will usually charge between 5% and 7% sales commission, plus 21% V.A.T. Holmes Property Sales charges a flat rate of 5%, plus IVA @21%.