Following my previous newsletter with the steps to sell a property at the Costa del Sol, the first step “Decide if it is worth selling or not” is going to be detailed in this article.
In order to decide if it is worth selling, adequate and complete information is needed to be able to take a proper decision. I would summarize it in three main pieces of information:
1.– How is the market? Is it a seller’s or a buyer’s market? How is the inventory of properties for sale? Are the prices going up or down? Although some of the information is public, it is not easily accessible to the general public. In general, it is better to wait for more understandable charts and articles published by newspapers or real estate agents that are accessible through internet. However, be sure that the information relates to your local market. The data for Spain is different to that of prime areas in Barcelona or Madrid and completely different to the ones of coastal locations. The markets may change substantially from one village to the nearest. For example, if you are looking to sell in Marbella and Benahavis, you can find the local market information on my web www.alfonsolacruz.com.
2.– Is it the right season to sell? That also depends highly on the location. High selling seasons may not be the same in big cities than in coastal villages. Talk to a reputable agent that have the knowledge about the seasonality of the local market. For example, in Marbella the best times of the year are usually spring and fall although summer is also not bad with all potential buyers coming for their holiday vacations. In Benahavis, it is mainly spring and fall with less buyer’s traffic in summer.
3.– Have you done your maths? Do you know your net after the sale?
It is not only about selling, it is also about how much are you going to get out from the sale. Debts at the date of the sale that have to be cleared, pending amount on your mortgage, professional fees for lawyers and real estate agents, Plusvalia tax and Capital Gain tax should be discounted from what you are going to receive to calculate your net.
- Previous debts could be with supply companies, the community of owners or IBI and rubbish collection taxes. Contacting the supply companies, the community administrator and the Patronato de Recaudacion will get you those amounts.
- On the mortgage, the bank should give you an statement with the exact amount pending at the date of the sale.
- Plusvalia tax is the tax paid to the Council when selling a property. A real estate agent, a lawyer or directly the Town Hall can provide an estimation of that amount.
- Capital Gain tax depends on your gain when selling your property. That means what you are selling for minus what you paid for it minus the expenses. The expenses may include the fees of lawyers and real estate agents contracted to buy and sell and investments on the property. All those expenses have to be justified with proper invoices.