Sellers Guide

At SELLING COSTA DEL SOL we aim to help and guide you through the entire selling process to ensure that your property is being marketed as effectively as possible, thereby increasing the chances of a quick and smooth sale at a good price. We already have a database of clients looking to purchase their new home, and it might just be that they are looking for a property just like yours.

Read our step by step guide on how to sell your property on the Costa del Sol.

Step 1: Choosing an estate agent

Estate agents in Spain

The estate market in Spain is very different than in most other countries.

In most countries every property has one agent, and no one else can sell this property, a much more regulated market. In Norway for instance the sellers first pick out the agent that they want to use and sign a contract with this company. This agent has the responsibility to market the property in the right channels, and only this agent can sell the property.

In Spain it is different. As a seller it is usual to choose one of two options.

You choose one agent exclusively. The agent will be much more focused on selling your property as it is this agent only who can list your property in the big data bases. This still means that all the other agents can see the listing and bring customers as well, but your agent will always be involved, so you only have to be in contact with this agent and not a lot of different ones. A focused agent will make sure to let all their customers know about the property and will follow up everything personally. They will also advertise and market the property in all the right places and do everything in their power to get the property sold for a good price. The cost for you as a seller will be the same if you go exclusive with one agent or if you sign up with many different agents.

You choose to sign up with many different agents. This means that you will have to communicate with many different people, and as you cant hand out keys to many different agents it will be more work to administrate the viewings. If you have signed up with many different agents each agent tend to be much less focused on selling the property. The reason for that is that there is a good chance that they will not get the sale at all, and therefore they dont want to use resources on advertising and marketing the property in different channels which costs money. It is also a fact that agents tend to choose to show properties that they already have keys to first as it is much easier for them and thy dont have to make buyers wait to see your property. So unless you plan to give keys to many different agents this can also be an issue.

We would definitely recommend you to go exclusive with one agent, it will be much less work and hassel for you, and the agent will focus much more on selling your property and achieving a good price. They will stretch extensively far to reach the goal of finding the the right buyer for your property. A win win situation.

What is important when choosing your agent?

If you are planning on selling your property it is important to find the right agent for you.

First of all you should choose an estate agent that understands the market on the Costa del Sol. It is important that the agent can tell the buyers about all important things in the area like local schools, good restaurants, golf courses and tennis courts, beaches and beach clubs etc. Secondly it is important that you trust the agent and communicate well with them, as you probably will trust them with your keys to facilitate the viewings. You should be comfortable around the agent. This is an important process where you should feel comfortable at all times, whether you are looking at small or a big estate agent, the personal contact is the most important. A good estate agent will not pressure you at all, they will rather give you good guidance. If you are not good at speaking Spanish and the Spanish agent is not so good at speaking English or your language, there will be room for misunderstanding. It is therefore important that you can communicate in your native language or a language that you master well. We in HAGI Estates are Norwegians and also understand Swedish and Danish very well. We also speak English and German fluently and a little Spanish.

Thirdly it is important that the agent has a professional web page that reaches many potential customers. It also important that they market the property correctly in all relevant channels. Your agent should also put up a 'For Sale' sign on the outside of your property. Many people drive around looking in the area that they would like to purchase a property in, so this usually brings some potential customers.

Step 2: Get a free valuation.

The first step is to find out what your property on Costa sel Sol is worth in today’s market. Contact us and we will visit your property and do a free valuation. We will carry out an extensive research to find the ideal recommended selling price for any property on the Costa del Sol.

It would be ideal for you to have all the information at hand about the property so that we can make an informed assessment of the value, including any technical information, floor plans and specifications. If you don’t have any of these don’t worry as we will find out for you! The results of the valuation for your property will be given to you within a day or two, and then it’s up to you to decide on the final selling price. A due diligence report would help you a great deal to sell your property. Tinsa is Spain’s leading appraisal company and they offer fast, efficient, and cost-effective property due diligence reports to help your property stand out from the crowd and look much more attractive to potential buyers.

It is mandatory if your buyer want to apply for a mortgage loan, thus it will make it easier for the buyer to decide. If there is doubt about the price of a property you will have arguments before a possible negotiation and you will possibly achieve a quick sale of the property.

https://www.tinsa.es/en/

If you also think this is a good idea we can organise ordering a due diligence report for your property for you.

Step 3: List your Property

Once you have decided on the selling price we can proceed with the listing of the property. In order for the marketing of your property to be effective we will need access to your property to take quality photos so we can present the property as best as possible. We will make recommendations to change the presentation if we feel that this will help in the selling process. We will collect all the information on the property and will proceed to the signing of a Listing Contract where all conditions will be stated. Broker's fees are not paid upfront, but are deducted from the settlement. And if no sales are achieved, you will not have any costs either. No cure, no pay.

We will need the following information and documentation to go through with the listing. If you don´t have some of this information just let us know and we will help you find it.

Information

• Full name, address and contact details of all owners and the corresponding Passport/N.I.E/DNI numbers.
• The year that the property was built
• The amount of the community fees
• The amount of IBI and Basura (Local tax & rubbish collection payments)
• Square Metres of the living area, terraces and plot

Documents

• Nota Simple of the property (land registry report)
• Last IBI Receipt (local property tax, paid yearly)
• First Occupancy License (if applicable)
• Copia Simple de Escritura (copy of title deed, if available)
• Floor Plan (not essential but helpful)

When we have obtained all the necessary information and documentation your property will be added to our system which instantly gives you the following benefits:

• The property will instantly be visible on our website
• Because of our real estate network on the Costa del Sol the presentation of the property will be visible to over 700 collaborating agents instantly.
• Your property will also be added to various online property portals.
• Your property will be added to our recent listings mailing list campaign.
• If we agree upon this we will advertise your property on Finn and other big market places in the different markets.

Step 4: Viewings

Make sure that your property is looking its best and consider undertaking some refurbishment if needed, this will improve the buyer’s impression of your home. Without much resources you can make your property stand out from the crowd and be more competitive. Such things as minor repairs that you have been putting off, a fresh coat of paint etc. It might also be a good idea to move some furniture and most of your personal belongings away from the property. Prospective buyers can better see the possibilities of rooms and they also look bigger and more airy if the rooms are not cramped with furniture and too many pictures on the walls. Tidy and well-maintained properties sell a lot faster.

When step 3 has been finished we will focus on showing the property as much as possible to potential clients. Nobody will buy a property without viewing it, not only one time, but sometimes two or three times. Therefore we recommend that you make easy access to your property for viewings, ideally by issuing us a set of keys. These will be kept in our secure safe and the property will only be shown in the company of one of us in SELLING COSTA DEL SOL.

If you live in the property we will highly recommend you presenting the property in the best possible state before a viewing. We will always try to give you 1 days notice for viewings but sometimes it is not always possible. At SELLING COSTA DEL SOL we feel that communication with our vendors is extremely important, and we will update you after every viewing with the client’s feedback as soon as it is possible.

Step 5: Offers & Reservation

When we find an interested client, we will inform them of the entire purchase process, and when we are sure they understand the process and want to proceed, we will proceed with their bid and the reservation of the property. There will usually be some negotiations regarding the sale price, furniture and other equipment to be included as well as the takeover date. We will negotiate on your behalf with your consent, and when both you and the buyer agree and are satisfied, the next step is to sign the reservation contract. At this point, the buyer places a deposit. The most common is that the amount of the deposit is 6,000 euros when the purchase price is less than 1 million euros, and 10,000 euros if the purchase price is over one million euros. When the reservation is made and the reservation contract is signed by both parties, we have an agreed sale and the property is reserved for the buyer and taken off the market. At this point, we would definitely recommend that you contact your attorney to complete the rest of the process. If you have not chosen a lawyer, we can recommend Cramer Advokater S.L., but this choice is of course your own.

Step 6: Signing of Private Purchase Contract - Completion of the sale

From now on, the necessary legal checks and processes will be carried out by the buyer's lawyer. A thorough due diligence is carried out where, among other things, it is checked whether there are legal or financial encumbrances on the property so that it is completely safe. After the Due Diligence has been carried out and a quality report made, the next step is a private purchase contract (PPC, also called Arras in Spain). When it is signed, 10% of the purchase price minus the deposit amount is normally paid, and this is normally signed 3-4 weeks after the reservation.
Now all that remains is the completion of the sale, which usually happens between 6 and 12 weeks after the reservation. However, this may vary depending on the agreement that has been entered into, and in some cases it may be as little as 1 week. Any debt (mortgage, joint costs etc.) must be settled before the completion of the sale if it has not already been done. Completion of the sale takes place by signing the contract and deed at a notary public, at which time you will receive payment and all keys will be handed over.

Fees & Taxes

It is important to be aware of the selling costs in Spain. The selling costs will depend on various aspects of the sale such as if a mortgage needs to be cancelled amongst other factors:

Selling costs:

• Plusvalia tax (capital gains tax) Depends on the value of the property and how much the value of the property has risen since it was bought.
• Lawyer's fee - 1% (this may vary depending on the law firm and services offered)
• Brokerage Fee - Usually 5% but can vary
• Profit tax. The purchase price and part of the purchase costs and selling costs as well as renovation/upgrading costs can be deducted from the sale price to calculate whether there is a profit on the sale. Of what is calculated as profit, 19% of this is calculated in profit tax.

This is only a guide, if you have more questions please ask us and we will explain in more details.

Disclaimer:

This information is offered to you as a guide and should be used as such, and is not intended to replace professional legal advice. All the information offered here is approximate. Please contact us for more detailed information or questions. SELLING COSTA DEL SOL accepts no responsibility for the incorrect use of the information contained.