Recommendations for selling your property fast and break down of selling costs

Recommendations for selling your property fast and break down of selling costs

When you have really decided that it is time to sell your property for whatever reason, it is time to act. It is highly advisable to hire a selling real estate agent to help you to market your property and sell it as fast as possible. Especially it is beneficial when you don't live permanently in the property for sale. All you need to do in this case is just price the property well according to the recommendations of the agent, sign the sale authorization and leave the keys to your agent. They will take care of the rest.

Here are a few tips to follow before contacting a realtor:

1. If the property needs some minor reparations, cosmetic renovation or a good clean up, it is strongly recommended to do it. You cannot imagine what fresh wall paint can do to the property and how it can increase the chances of selling.

2. If you have an opportunity to clear out the property before selling, do it straight away. Decluttered houses sell much faster, simply because they seem bigger.

3. Prepare all necessary documents for selling in advance. If you get a potential buyer that wants a quick sale, it is better to have all the papers like Title deed original, updated Registry note, Energy Certificate, latest water, electricity and gas bills with payments proof, Community bills paid (if any), Certificate of Habitability ready, latest Property tax paid.

4. Always make the property presentable during visits if you live there. Make sure it is cleaned, aired and bright. First impression is absolutely crucial.

5. De-personalise your property as much as possible because the potential buyer might get mislead by huge amount of your personal belongings, or specific interior design.

What concerns the costs of selling a property in Spain, they will be as follows:

• Realtor commission. The commission is always paid by the seller, if not agreed otherwise. The % of commission varies from 3% to 7% depending on the property, location and price. Absolute average around the country is around 5% of the selling price.

• Plusvalia tax. It is a tax on the increase of the value of land the property is located on. This tax is paid to the local municipality and is calculated based individually for each property depending on when it was purchase, for which price, when it is was sold and the selling price.

• Capital gains tax. It is basically an income tax if you are selling your asset for a higher price than it was purchased for and it is paid by Spanish residents and citizens. There are exceptions when no tax has to be paid and it is for people over 65 years of age and for home owners that are selling their habitual home where they lived officially for at least 3 years. Otherwise the tax on capital gains for the first 6.000 EUR of profit is 19%, from 6.000 EUR to 50.000 EUR - 21% and over 50.000 EUR - 23%.

• Non-resident tax. If you are selling a property as a non-resident, a 3% deduction will be made from the declared selling price and will go directly to tax authorities to cover the Capital Gains tax for non-resident, the standard rate of which is 19%. This tax is always retained by the buyer in the moment of sale and is paid directly to the authorities to ensure that the tax office claims at least some money before the seller leaves the country. In case there is no tax gain, the seller can claim a refund of 3% retention. If there is a capital gain and 3% have not covered the full amount, the seller has to pay the outstanding amount.

• Energy certificate. It is an obligatory document to be presented in the moment of sale at the notary and the price varies from 150 EUR to 500 EUR depending on the type of property.