Find an Agent
The agent you choose must know the local market well to advise on price. Good agents will walk you through the whole process from marketing the property, arranging viewings, negotiating final price, arranging the contract, securing the deposit and completing at the notary.
At Property Options, our valuers have a wealth of local experience in the market.
Homework
This involves any outstanding general maintenance and collating documents before putting the property on the market.
We strongly advise carrying out repairs and decorating any tired areas of the house. Any small faults will suggest to a potential buyer that larger, more expensive faults lie elsewhere. Investing a bit of time and money at this stage will reap its rewards.
Get the following documents together. This will prevent possible delays and will certainly provide the buyer with confidence. Title deed (Escritura Publica), receipts for payment of real estate tax (IBI), most recent income tax declaration showing that the property taxes are paid and receipts for community charges.
The Asking Price
You can research the pricing of similar properties in your area. Your agent should have a good idea of the market-value in the area. Also, ask your agent to advise on raising or lowering the price depending on how quickly you want to sell the house.
Finding a Buyer
This is where the choice of agent really makes a difference. Find out how the agent will find potential buyers for your house. How are they marketing your property? Are the agents putting your property in front of a decent number of purchasers looking for a house at your asking price and situation?
Once registered, the property will be on a database accessible to other local agents. This means that as long as the property is sensibly valued, your house will be viewed by a constant flow of potential buyers sourced by via a very substantial overall amount of marketing.
Presentation of the Property
Remove any clutter in the house to give the potential buyers the best chance to see the space available and imagine what they would do with it. Should you have an excess of bulky furniture, make the effort to store it away from the house.
The agent will present the house. When there are signs of interest, striking up a relationship through conversation will make it easier for the buyer to make an offer.
Negotiating Contracts
Often this is easiest through your agent who is accustomed to interpreting the seller's point of view as well as the buyer's and reaching agreement.
The Contract Stage
Once the price has been agreed, you are best off taking a holding deposit to remove the property from the market. This is intended to protect the agreement and is for the benefit of both buyer and seller. The sale is complete when the 'Escritura de Compraventa' is signed before the notary.
Costs
It is normal for the buyer to pay the transfer tax, registry and notary fees. The seller normally pays for the plus valia and his own capital gains tax.
Capital Gains Tax
This is charged on the difference between the declared price when you bought the house and the declared selling price. This profit varies according to length of time you have owned the property.
From January 1st 2007 the capital gains tax is a flat rate for everyone at 18%.