5 Useful Tips

SELLINGYOURSPANISHPROPERTY

// 2

TAKE CONTROLof the home selling process by following Domus Venari’s 5 Useful Tips. This brochure includes detailed information on the entire Selling Process, step by step, including a breakdown of associated costs, the legal paperwork required, and referrals to our trusted professional advisors.When selling your Spanish property, it is important to have the right information from the start. Once your property is effectively promoted, thousands of potential buyers will have access to the information online. The following tips will help you to prepare and list your property whilst avoiding any unpleasant last minute surprises.

SELECT AN AGENT

// 4

It is strongly recommended that you use an established Real Estate Firm to sell your property. A good Real Estate Agency will promote your property locally and internationally. On the Costa del Sol, international property purchasers are a strong buyer group. Over 30% of property transactions, in 2019, involved non-Spanish purchasers. A total of 10,000 properties sold to foreigners in Andalucía.

At Domus Venari, we promote all listed properties throughout Europe and to a large in-house client data-base. We have many potential property purchasers in all Northern European Countries. Our commercial team is over 25 strong and speaks 10 languages. We are multilingual property specialists and will communicate with every potential buyer in their own language.

You may decide to list with one or more agents. If you choose more than one agent, you should make sure that all have the same asking price, regardless of the commission agreed. Any inconsistencies in the asking price may confuse, or worse, scare off any potential buyers.If you select one agent to exclusively market your property, you may want to set a time limit to this exclusivity. Our exclusive listing agreements are for six months.

SELECTANAGENT

// 5

Standard sales commissions in Spain vary between 2% and 10% depending on the selling price, the demand, advance payments, professional photography, 3D virtual video, and the marketing strategies included in the commission.

Standard sales commissions in Spain vary between 2% and 10% depending on the selling price, the demand, advance payments, professional photography, 3D virtual video, and the marketing strategies included in the commission.

Any reputable Agent will provide you with an invoice for the fees at completion, which includes the VAT details (CIF) of the agency. No sale, No fee. A formally invoiced commission payment can be deducted as an expense when calculating your Capital Gains Tax.

Any professional Real Estate agency will give you updates on a regular basis on all activity relating to your property, regardless of how many viewings have happened.Any viewing will be followed up with feedback from the prospect, the listing Agent and the sales person, whether or not an offer is made.

Domus Venari has developed an advanced Client Relation Management system, which allows us to track all online activity, website visits, email opening rates, and agent information requests. A personalized report will be provided to you on a regular basis and can be used to adjust any aspect in the marketing of your property.

SET THE RIGHT ASKING PRICE

// 7

Setting a realistic asking price for your property is essential to achieve the desired result, both for the selling time frame and the final selling price. For most vendors, this is a difficult task as emotional attachments and financial liabilities need to be balanced with a pragmatic assessment of the property market and demand. At Domus Venari a professional listing agent, together with the sales team, prepare a market analysis, including price comparisons of similar properties in your area. We will provide you with all the necessary information required for you to make an informed decision on how best to price your property.Private vendors should be aware that historically the final selling price is on average 5% below the asking price. As with any sales transaction, a buyer wants to achieve the best possible deal and most want to negotiate something special. Of course, the pricing and discounts vary and depend on the value of the property, its location, and unique selling points, USP’s.

SET THE RIGHT ASKING PRICE

At Domus Venari a professional listing agent, together with the sales team, prepare a market analysis, including price comparisons of similar properties in your area

STAGE YOUR PROPERTY

// 9

Whilst you and your agent will want to create an overall image that appeals to as many potential buyers as possible, it is important to keep the information relevant and factual to any future disappointment.If quality images of your property are not available, Domus Venari will be happy to arrange professional photography and 3D virtual images for you. You can discuss these costs with your Domus Venari listing agent.It might seem obvious, but good photography and videography are critical for your success in selling your home. Homes with high quality photography sell 32 percent faster. Homes with more photos sell faster, too. Video marketing strategies and virtual tours are also crucial for reaching today’s house hunters. With Domus you can connect with consumers in a fast-paced digital world by setting yourself apart and grabbing their attention instantly.When viewings with potential buyers are arranged, the property needs to be prepared in advance. “You never have a second opportunity to create a great first impression.”You need to make sure that the property looks tidy, bright, and warm.

STAGE YOUR PROPERTY Once you have agreed to list your property with an Agent, the information will be available to potential buyers and other agents. A good Estate Agent will make sure that your property is well presented with appropriate images and a description that sets out the USP’s of your property.

Here are some Low Budget Home Staging Tips you can arrange yourself: Improve the entrance area with some décor and plants Remove personal photos and replace them with artwork Place some nice mirrors in strategic places Set the tables Place baskets with neatly arranged towels in neutral colours in the bathrooms

SECURE THE DEAL

// 12

Once you are happy with an offer, a formal reservation form is signed setting out the agreed price and timeframes for the property transaction. At this stage, your lawyer ensures that your legal interests are represented properly. If you do not have a Spanish lawyer, we are happy to introduce you to one that will provide legal service in your own language.

SECURE THE DEAL

When an offer is made on your property, your agent will consult with you on how to counter an offer. It is recommended to leave the negotiations with the buying party to your agent with parameters, such as minimum price and maximum closing dates that are agreed with you beforehand.

SPEEDUP THEPROCESS

// 14

Ideally, you would select a solicitor when you make the decision to sell your property. It is recommended, that you have a complete property review to ensure that all fees are up to date, all licenses are in place, and get an overview of your mortgage situation, including any penalty payments for early settlement. Your lawyer may even be able to negotiate a possible subrogation of your mortgage to the new owner.It is common practice to set a fixed fee to cover legal fees for the property transaction, usually set at a fixed amount in part and a percentage payable at completion of the transaction. As with the agent´s commission the solicitor´s fees can be deducted from the Capital Gains tax.

SPEEDUP THEPROCESS

THE SELLING PROCESS IN DETAIL

THE SELLING PROCESS IN DETAIL

RESERVATION AGREEMENT A pre-purchase agreement confirming property details, purchase price and timeframes of purchase process

Signature and payment of reservation deposit takes the property off market

Price and initial terms are agreed with the Buyer

The reservation fee is usually held by the Buyer´s lawyer or agent in a dedicated client account

DUE DILIGENCE BY THE BUYER´S LAWYER The Seller´s Lawyer should work closely with the Buyer´s lawyer to ensure all necessary documents are provided to undertake the Due Diligence

Providing all checks are satisfactory, the Private Purchase Contract and its conditions is agreed and prepared

PRIVATE PURCHASE CONTRACT Confirms all details of the property to be purchased

Sets completion date and payment method

Payment of 10%-40% of the purchase price plus transfer taxes (if applicable)

SIGNING OF THE TITLE DEED Preparation by the lawyers of the Seller and the Buyer, including Power of Attorney should you not be able to attend completion

Final checks and signing of Title Deed (and mortgage Deed) in front of Notary Public

Payment of balance of the purchase price plus all taxes and additional costs

TRANSFER OF THE PROPERTY TO THE NEW OWNER The lawyer of the Buyer will register the property with the Land Registry to the new owner

PROPERTY SELLING COSTS SPAIN 2020

CAPITAL GAINS TAX

When you sell a property using the services and expertise of an estate agent you will have to pay a commission fee. Agents charge between 5% and 7.5% commission, depending on the selling price and services included. The seller can deduct the commission fee from the capitals gains tax.Good estate agents will not only ensure that your property receives maximum exposure to potential buyers, but will also assist you in every step of the selling process, including all follow up negotiations with the buying party and your lawyer.

EXAMPLEThe Seller purchased a property for €200,000 in 2003 and sells it for €350,000 in 2020:

CAPITAL GAINS TAX IS DUE FOR THE AMOUNT OF €150,000

The Seller will be exempt from paying the Capital Gains Tax if:

· At the time of selling the property they are aged over 65 and have used the property as their primary residence for the last 3 years.

· The Seller can deduct all official expenses from the taxable amount, including

Refurbishing Costs

Notary Expenses

Legal Fees

Agent Commission Fees

If the Seller is a non-resident, the Buyer is obliged to withhold and deposit with the Spanish Tax Authorities (Hacienda) 3% of the final selling price. Once the tax amount has been calculated, the Seller will be notified. Any difference between the retained amount and final tax due will be either payable by the Seller or refunded to the Seller.

RANGE OF PROPERTY VALUE IN EUROS APPLICABLE RATE

From 0 to 6,000 19%

From 6,001 to 50,000 21%

50,001 Onwards 23%

19% on €6,000 €1,140

21% on €50,000 €10,500

23% on €94,000 €21,620

Total €33,260

PLUSVALIA TAXThe Plusvalia tax is a municipal tax payable to the Town Hall and calculated over the increase of the value of the land on which the property is located.

THE PLUSVALIA TAX IS CALCULATED ON THREE FACTORS:

The period of ownership

Location of the Property

The Cadastral Ground Value (note: the cadastral ground value may differ from the market value of your property)

It is recommended, that the Seller requests the amount of the Plusvalia Tax prior to setting the initial asking price for the sale of the property as this will affect the final net price of the sale of the property.

CERTIFICATE OF ENERGY PERFORMANCESince 2013 it has been compulsory for anyone selling a property to obtain a Certificate of Energy Performance. The Certificate needs to be available as soon as you put your property on the market. Anyone offering their property for sale (or rent) without this Certificate can be fined. The cost of the Certificate of Energy Performance ranges between €80 to €180 for an Apartment and €180 to €300 for a Villa. Your Estate Agent will assist you in obtaining this Certificate.

MORTGAGE CANCELLATION FEESIf the property sold is charged with a mortgage, it is the Seller´s responsibility to lift the charge and pay the associated costs. This can be arranged through the lawyers with part or all of the selling price paid directly to your bank. You will find the conditions to cancel your mortgage in your mortgage deed.

In addition, there is a fee to have the charge removed from the land registry, which is approximately €800. Even if your mortgage has been paid off, your lawyer should check, if this charge has been lifted.

DOCUMENT AND INFORMATION CHECK LIST FOR SELLING A PROPERTY

AGREE ON SELLING PRICE OF THE PROPERTY WITH YOUR AGENT:

Market study, price comparisons and market valuation prepared by your agent

Selling cost (Capital Gains Tax, Plusvalia, Mortgage cancellation costs, legal and agent fees)

Time period in which you would like to sell your property, focus on price or fast sale

Leave room for negotiation

PREPARE ALL DOCUMENTS:

Up to date Nota Simple (Extract from the Land Registry confirming all property details, including ownership and charges)

Energy Performance Certificate

Information on Plusvalia

Mortgage Deed

Power of Attorney to your Lawyer

Selling Agreement with your Agent

Last IBI and Community Fee Receipts

Copy of License of First Occupation

OUR TEAM OF PROPERTY EXPERTS WILL ADVISE YOU ON ALL ASPECTS OF THE SALES PROCESS Setting the right asking price Realistic expectations on time frame and final sales price Staging of the property and good imagery Assist in gathering all necessary documentation Ensure advertised information is correct Recommend legal and finance experts Promote the property locally and internationally Deal with all enquiries and viewings Regular reporting on the performance and feedback on viewings Copy of License of First Occupation

WHY DOMUS VENARI?

Our aim is to provide an honest and transparent service from the outset to achieve best possible results for all our clients.

WHYDOMUSVENARI?

COMMISSION STRUCTURE – MARKETING PACKAGES 5% 7% 8.50%

Resales Online - accessed by over 1,000 Real Estate agents

www.domusvenari.com - 20,000+ visitors per month

Detailed property descriptions in Spanish and English

Included in weekly property mailer updates -over 25,000 active subscribers

Detailed property descriptions in Spanish, English, German, Swedish, Dutch, French, Finnish

Featured on selected International Property Portals

Regular Mailers to Local Agents offering 4-5.5% to third party agents

Individual Property Mailer to clients – over 25,000 active subscribers

Professional Photography

3D Walk through of Property

Additional Incentives to 3rd party sellers and agents

Bespoke Campaigns on Social Media, including videos