With a focus on selling premium luxury properties in Marbella since 1995, our track record includes some of the region’s most exceptional and notable properties. Leveraging international networks, we showcase properties to a worldwide audience, both publicly and privately.
Our longstanding local and global reputation enables us to connect with a discerning clientele through personal relationships, realtor networks, and collaborations with international institutions.
Our marketing strategies aim to present your property optimally, ensuring a swift and successful sale. If you’re contemplating selling your Marbella property, we’re eager to assist, guiding effective marketing tools and appropriate pricing.
To aid you in initiating the process, we’ve outlined comprehensive information below, covering key aspects of placing your property on the market, determining the right price, selecting a real estate agency, navigating the sales and marketing process, and understanding the associated expenses and taxes. Feel free to reach out for additional details.
4 STEPS TO SELL YOUR PROPERTY THE RIGHT WAY
- Pricing your property to sell
- Appointing a real estate agency
- Placing your property on the market
- Know about costs and taxes when selling your property
PRICING YOUR PROPERTY
When deciding on a selling price, various considerations come into play. Factors such as your property’s value, recent sales in your neighborhood, the cost of constructing a similar property (replacement value), and prices of comparable properties in similar locations all contribute to your pricing strategy.
Market Appraisal: Engaging a real estate agent involves estimating your property’s replacement and current market value. Agents rely on current listings and recent sales of comparable properties for accurate valuations. While actual selling prices in Spain aren’t publicly available, agents with a strong track record possess reliable data. In case of disparities between your estimate and your agent’s, obtaining an official valuation from an independent firm is recommended.
Setting the right price is crucial to minimize market exposure time and avoid overexposure. The asking price should include agent fees (typically 5-6% plus VAT in Marbella) with room for negotiation, considering that buyers often offer less than the asking price.
Official Valuations: Opting for an official valuer involves various techniques:
- Maximum legal value
- Replacement cost
- Market value is determined through methods like comparative market analysis, fixed residual yield, and capitalization of current income yield.
Calculating market value considers factors like comparative market analysis, fixed residual yield, and capitalization of current income yield, each with its methodology.
APPOINTING A REAL ESTATE AGENCY
The real estate industry in Spain lacks regulation, making it imperative to choose an experienced and reputable agent. Whether a well-established company or a trusted freelance agent, consider their reputation, experience in selling similar properties, international marketing capabilities, overseas client sourcing, and overall infrastructure.
Key questions when selecting an agent include:
- Is the agent well-known in Marbella with a good reputation?
- Does the agent have experience in selling similar properties or in the same location?
- What international marketing channels does the agent use?
- Does the agent have an overseas team for client sourcing?
- What infrastructure does the agent have, such as an office with a professional team?
Choosing Between Multiple or Single Agents:
Appointing Several Agents: While it may seem advantageous, having multiple agents can complicate coordination and potentially lower the chances of a sale. Splitting commissions among agents may also impact marketing efforts.
Appointing One Agent: Choosing a single agent simplifies communication and ensures a dedicated focus on marketing and selling your property. The sole agent’s commitment often results in more proactive marketing efforts, especially in tapping into local and international buyer markets.
PLACING YOUR PROPERTY ON THE MARKET
Objectivity is crucial when assessing your property’s strengths and weaknesses. Collaborate with your agent to identify areas needing improvement, whether through repairs, renovations, or simple enhancements like fresh paint. Addressing such issues enhances the property’s appeal and minimizes potential negotiation points for buyers.
Consider renovation or changes that align with buyer preferences, keeping in mind that not all buyers may want to deal with major renovations. Seek your agent’s advice on changes that could enhance your property’s appeal without alienating potential buyers.
Ensure your property is well-maintained, addressing defects and presenting it as attractive and inviting. A well-lit, well-maintained property tends to attract more interest. Simple changes, such as updating light fixtures and taps, can significantly improve the overall impression.
Prepare for the sale by organizing essential documents like title deeds, first occupation licenses, tax receipts, and utility bills. Having these ready streamlines the sales process and instills confidence in potential buyers.
COSTS & TAXES WHEN SELLING YOUR PROPERTY
Selling a property involves various expenses, including real estate agent fees, property-related costs, and taxes. Understanding these expenses is essential for accurate financial planning.
Real Estate Agent’s Fees: Typically a percentage of the sale price, agent fees on the Costa del Sol are around 5% of the sale price plus VAT. While owners generally cover these fees, there are cases where the buyer engages an agent, in which the buyer bears the commission.
Property Expenses: Property expenses include municipal tax (I.B.I), rubbish, community fees, and utility costs until the date of sale. If these expenses can’t be precisely calculated on the sale date, the buyer may withhold an amount to cover them.
Taxes on the Sale of a Property:
Plusvalía Municipal: This tax is based on the increase in land value since the last transfer. Recent changes include mandatory proof of payment for registration and modified calculation formulas. Sales within the first year of ownership are now subject to taxation.
Income Tax: Non-residents selling property in Spain must pay Non-Resident Income Tax, based on the profit from the sale. The buyer typically withholds 3% of the sale price as a deposit, ensuring tax collection. Residents or tax-resident companies may not face the 3% withholding tax.
Exemptions and payment deferrals exist for specific scenarios, such as individuals over 65 selling their permanent residence or reinvesting in property within 24 months.
It’s advisable to consult with a qualified professional to plan your investment considering legal and tax implications. While this guide provides information, it’s not a substitute for professional advice, and accuracy is not guaranteed.
Article by Louis Wittner
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