Selling Spanish Property
Selling property is an art; it is something we have been doing for years. As we all know the property market in Spain has become very competitive, and many sellers without local experience should take expert guidance from us as to how to go about selling in a realistic and successful manner.
Establishing the asking price
The first and most important thing to establish is a "sales strategy" - a plan! The backbone of this strategy is the asking price. In other words, if you ask too much for your property, people will not even bother to view it and the result is that you won't even reach the market place.
Ask too little for your property, and you are potentially giving away part of your assets! The right asking price is the perhaps the most essential ingredient in the art of selling real estate and is the result of thorough market research. Don't settle for the figure you want to hear, find out the true market value.
What sales of comparable properties have been accomplished, and at what price? And what other owners with similar properties are asking? Is your property unique, which will allow you to ask a higher price as it cannot easily be reproduced, or are there many similar properties being offered?
We will of course be an extremely valuable source of market information, and we will help you reach a conclusion as to a proper valuation and a correct asking price for your property. At the end of the day you must be convinced that you are asking as much as you possibly can, without the property appearing overpriced in the market place.
If, after having investigated the market as recommended above, you are not satisfied with an asking price that the current market would suggest, you can always put up the price, and hope the value will eventually increase the towards your expectations. But you must be prepared for a lot less interest, resulting in fewer showings of the property and a waiting game. There is always the option to lower the asking price in order to generate viewings.
Beware of other agents who tell you what you want to hear: too many agents purposely overvalue homes to get a listing and let their sellers down over a period of time. Consequently, there are too many overpriced properties on the market, sitting there with no viewings whilst the seller has assumed that the asking price was reasonable.
Finding a buyer is, in many respects purely a numbers game: the more people who view the property, the more likelihood that one of them will fall in love with it and put in an offer. Some buyers will negotiate with a seller to the very end of his string, and others will be less difficult. But it's easier to refuse a low offer if you are showing your property frequently.
Build in a small margin for negotiation
An asking price is not necessarily going to be the sales price at the end of the day. It is considered suicide for a seller to ask his last price, due to the "macho factor" of most buyers who want to be perceived as winning in a negotiation to purchase, regardless of the asking price. So, experience dictates that the intelligent seller should build a small margin for negotiation into his asking price.
Essential Tips for Selling your Home
Get us to put up the "For Sale" sign. This always results in enquiries.
Facilitate viewings on as short a notice as possible. Often our clients have quite a few properties to see in the same day and if we can squeeze in additional viewings we will to increase your chances of making a sale. Of course if we hold the keys for you and usually conduct viewings then this is no problem.
Ensure that curtains and shutters are open and that lots of light floods the property when it is shown.
If there are any small repairs or repainting that would enhance the overall appeal of the property, it's well worth getting this work done now to eliminate any small “objection factors” from buyers. Although it goes without saying, a clean house is a desirable house, and many buyers are put off if the property is grubby or untidy. Make sure the place is spotless and you will instantly create a favourable impression. Selling a property, in this sense, is like selling a second hand car: fix the dent and polish it up, and you will always facilitate the sale, and maybe at a better after-negotiation price!
If you intend to sell your property with some furniture, it is most important to make an inventory right at the beginning and give it to us. Many sales have been on the brink of falling through when a buyer thought, for instance, that the painting over the fireplace was included in the sales price and felt that the seller was “too mean” when he learned that it was not! Negative energy during a negotiation can be avoided by having a clear inventory in writing from the outset.
If you are frequently travelling, it often makes sense to leave a power of attorney with your lawyer enabling him or her to sign a private contract on your written instructions. You can negotiate the details of the sale with us by telephone and e-mail and the power of attorney allows the “first step” towards the sale, the signing of a private contract, to take place without delay.
Make sure that you are fully aware of your tax obligations when you put your property on the market. Meet with your lawyer and tax advisor, and find out the options open to you to ensure there are no surprises when you eventually enter into negotiations to sell your property.
Remember that selling a property in a resort area is not usually a rapid procedure, even in good market conditions. Properties can stay on the market from three months to well over a year depending on the market, the location, the condition and general desirability of the property, the effectiveness of your sales strategy and, of course, the asking price.
Let us form a team with you with respect to handling the negotiation in an eventual sale, checking points with your lawyer when necessary. This is part of our job and one of the reasons you pay our fee. Once this is accomplished, your lawyer should take the lead role (in coordination with your agent when necessary), draft the sales contract and supervise the eventual completion of the sale.
Points to consider when a negotiation is taking place: Is the buyer expecting a counter offer from you or has he or she given you a one-and-only, take-it-or-leave-it offer? Do they have other properties in mind if they don't buy yours? Is their offer a fair one? Are all details included in the offer – price, target contract date, deposit, completion date, precise understanding of what is included in the sale in the way of fixtures, fittings and furniture, etc.? These items should be agreed upon at the outset and before lawyers are instructed. To avoid unpleasant surprises, under no circumstances should these items be negotiated "piecemeal", once again we are here to help you with this aspect of the sale.
Don't allow yourself to be pressured in making up your mind to accept an offer! We will simply point out your options and support any conclusion that you reach. But once you make up your mind to proceed, and considering the “emotional factor” of many buyers of second or retirement homes where they can change their minds abruptly, make sure you move quickly (but surely) to close the deal.
In summary, selling a property can be as easy or as complicated as any task involving one's personal affairs. We feel we are competent, honest and professional and so are our lawyers and tax advisors and between us we can help you manage your sale objectively and easily.
