Sellers Guide for Marbella
At Location Moves we work hard to help you to sell your Marbella Property in a way that works well for you. Obviously getting the highest price is important; however we understand the market conditions and the price that the market will stand.
If you do want to sell your home as quickly as possible, we suggest that you read the following guide carefully. This guide is complied by Location Moves to ensure that you, the seller, get the best deal because you understand the market facts and will not have undersold your property.
Pricing too high may be worse than pricing too low
If you list your property too high then you may miss buyers in the price range where your home should be position. In Marbella there are a comparatively small number of properties in ten main areas, so buyers who have done their homework will already have a good idea of what the price should be.
You may not even get viewings if potential buyers believe the price is too high. The Location Moves Properties research team will assess the true market value and list it at a realistic price. If you want to achieve a specific price point then we may advise you reconsider or rent your property for a year. In the long term, prices always go up and if you cannot sell for what you want now then it may be better to wait until another day.
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A Buying decision is made within 60 seconds of arriving at the property
The Marbella property market is mostly home buyers rather than investors (a marked changed from a few years ago) this means that most buyers are looking for an inviting home they can move into straight away or in other cases have the perfect second residence from day one.
Spending some money for necessary remedial work on your home before you market it makes sure you get a better price and sell more quickly.
Buyers who are willing to do the repairs after moving in automatically take the cost of this work off the price they offer. The Location Moves Properties team can advise you which repairs and replacements are most important to get a sale at the right price.
Sellers – Do not get carried away with repairs and replacements to your home, as you may end up over-improving the property.
The cost of improvements to property in Marbella is low compared to many countries as most apartments and villas are fairly new. You can get a lot of work done on a property at a reasonable rate; there is however a subtle balance. Be careful that the cost of your improvements does not exceed the amount of additional money they will bring in when you sell. Make sure your improvements do not raise the value of your home too far above that of other similar properties in your area as you may not get your money back when you sell.
You cannot expect improvements to increase your sale price in excess of 20% than a comparable home in your neighbourhood whatever you do or spend. Location Moves Properties can advise you as to improvements that will raise the value of your home when you sell.
Sellers offering flexibility in financing options may encourage more prospective buyers.
Consider offering to pay some of the buyer’s completion costs or include a one-year home warranty, or other buyer incentives. Some people who have been leaving Marbella have included their car in the price, whilst others have created a legalised extended payment plan giving the buyer time to raise money from other assets.
We can recommend incentives for buyers and how there are more ways to sell a property than lowering the price.
Results are poorer for sellers who attempt to sell their homes on their own and find they cannot complete the sale without the help of an estate agent.
Spanish property law makes it almost impossible to complete a sale without an agent. Additionally, Sellers who don’t use a real estate agent often do not get the best price for their property. As your Marbella property is a big asset it makes sense to work with professional and qualified Marbella agent when you want to sell it. Use the experience of the Location Moves to help you achieve the best price with the least stress.
If you approach the sale of your home as the buyer’s adversary, you risk losing a perfectly solid buyer for no good reason.
It has been proven that if Seller or a Tenant is in the house during a viewing it can make buyers feel like they are intruding. There is a right time for the two parties to meet, but it may not be at first viewing. The Buyer needs to be able to visualize your house as their home. This can be difficult when you are around reminding them it is still your property. Location Moves will be pleased to show people around your home and will know when to leave them alone to look and talk by themselves. Work with Location Moves to approach negotiations positively and with a win-win frame of mind.
You should reply immediately to an offer! When a buyer makes an offer to your agent, the Buyer is, at that moment, ready to buy your home. Our agent will inform you immediately and your prompt response will be sought and welcomed.
A sale can happen surprisingly quickly and therefore its worth taking a quick look at the sales process from day one to make sure you have everything ready.
Make sure you have the following documents
1. The square metres of the property match with what is physically built.
2. The land area is correct.
3. The description of the property is pretty much accurate.
4. The classification of the property matches its current use.
Each of these documents should be available for a buyer to see when viewing your property:
- The Escritura
- Catastral entry for the property
The Catastral is the second public registry within Spain (the Property Register being the first).
Equally, the Catastral Value of your property is very important. It is essential you are aware of this as it has recently become a major issue for buyers and sellers with the reduction in sales values across the country.
All the Catastral information should be the same when compared with your Escritura and Nota Simple (from the Property Register).
The built size of your property, the land area and how your property is classified for use should ideally be the same in all 3 documents. If you have any discrepancies between your various documents this will, invariably, slow a sale down or cause sufficient concern for a buyer to withdraw.
The Catastral Value of your property will affect how much you pay for IBI.
In recent years with the drop in property prices, Catasral value has implications on any sale achieved.
Often can affect the buyer, rather than the seller.
The Catastral vaule is not subject to market fluctuations, and therefore do not reflect the current market values.
If you are selling a property at €300,000 which still has an historic Catastral value of €400,000 then your buyer will probably be hit with an additional tax bill for the difference. Often this happens six months after they have moved in.
Lawyers are now making their clients aware before proceeding with a purchase. It can cause problems with buyers and make your property less desirable.
An advantage to being armed with this information, is you can factor this issue into your agreed sale price but also ensure that your lawyer makes it clear that any future tax bill that arises after completion (because of the Catastral Value) is not your responsibility.
- Nota Simple (no older than 3 months)
A Nota Simple is a certificate produced by the Registro de la Propiedad which has a shelf life of approximately 3 months which in simple terms, confirms the legal ownership of the property and how it is inscribed in the Property Register – a summary description of the property including built meters, land area, what classification it has, plus outstanding debts (embargoes) such as mortgages against the property.
The Property Register is the only public register within Spain which deals with the legal ownership of property and the charges held on it. This is the reason that all lawyers and banks will request a Nota Simple from you (that is no more than 3 months old) at the start of any property being purchased. This will be requested above everything else.
- Energy Performance Certificate (EPC)
From 2013, the Spanish Royal Decree 235/2013 came into force for all owners wishing to sell or rent their properties, bringing Spain in line with current European legislation regarding the efficiency of all buildings with regard to energy consumption.
The Energy Performance Certificate is issued once the construction elements and installations of a property have been assessed and graded. The study of these characteristics will place the property into one of seven categories, from A, the most energy efficient, to G, the least. See our separate article about the Energy Performance Certificate.
At Location Moves we have the experience required to navigate you through the whole process, we know how to anticipate potential problems and make your sale as simple as possible.
If you have any questions to the above please contact Marcia