por Robert Ward Harris 
Deciding to sell a property is always a difficult time in our lives due to the circumstances that have brought us to make that decision. The idea of this guide is to give you as much information as possible of what to expect when selling your property in Almeria.
choosing an estate agent
Choosing an estate agent will in theory be the biggest step one can make when deciding to sell a property and what makes things somewhat difficult is the number of agents available to choose from. It goes without saying that you’ll need a proactive agent who is able to promote your property to its full potential while also being fair with their commission rates. What’s great is that you can see the level of effort agents put into their marketing simply by looking at the quality of the adverts they have listed on their website.
At Medimar Homes we strive to showcase our properties to the highest level possible offering professional inhouse photography and videos that don’t overexagerate the reality of a listing as this will only give negative impressions to clients once they see the property in person. These are carried out as part of the service with zero hidden charges.
You’ll also want to find an agent who is fair with their commission rates. At Medimar Homes we offer affordable rates to vendors with no upfront costs and strongly believe that we shouldn’t be paid for the job until it is complete.
Finally, you’ll need to decide if you wish to list with that agent on an EXCLUSIVE or NON-EXCLUSIVE contract. Exclusivity affords the contracted agent a set period of time to sell the property with no other agent involved and typically lasts for 6 months. This type of contract is beneficial to a vendor as it typically offers a reduced commission rate.
Property marketing
At Medimar Homes we understand that where your property is advertised will greatly influence the number of quality leads we receive. Marketing has changed massively in our sector during the last 10-15 years where we have seen a clear shift away from traditional physical advertising to a more online presence.
Due to our decade of experience we can confidentially assure vendors of our tried and tested advertising methods. As long as the marketing price of the property fits the current market you can be assured that our methods will provide results.
From social media to well-established property portals your property is going to see a high level of exposure. Property Portals such as Rightmove Overseas, A Place in the Sun, thinkSPAIN and Idealista are the current leaders providing high quality leads to property owners that then convert into buyers.
While the shift has moved primarily to online advertising this doesn’t mean we have fully abandonded more traditional methods. With plenty of high quality locally sourced magazines and newspapers distributed in the area our properties will also experience plenty of local exposure.
selling costs/expenses
Before making the decision to sell your property you will need to know how much it’s going to cost you. This can be broken down into the following categories though not all are applicable:
- Estate Agent Commission
- Legal Fees
- Plusvalia Tax
- Capital Gains Tax
- Non-Residency Tax
- Council Tax
- Mortgage Cancellation Fees
- Land Registry Updates
– The commission due to the real estate agent for selling a property will depend on who you have contracted and what conditions you have agreed on. In this particular area the commission rates are typically between 2.5-4%+IVA (VAT of 21%).
– Legal fees will again depend on the firm you appoint to run the sale and what work they’ll need to carry out to see a sale through. From experience the charges can range between 800€-1,400€+IVA.
– The Municipal Plusvalía Tax is a tax applied to the increase in the value of urban land during the time of ownership. It is important to note that this tax is applied to the value of the land, and not of the property itself, when this is transferred to a new owner. It can be hard to calculate this tax as it depends very much on how long you have owned the property for and even which townhall your property comes under. As a rough guide this tax can be around 1,000€ but it would be best to have your lawyer break this down for you. You are exempt from this tax however if you have made a loss on the sale of the property even if the value of the land has increased.
– The Capital Gains Tax applied will depend on the amount of profit made on the sale. Up to 6,000€ of profit will have a 19% tax applied, between 6,001€-50,000€ is 21%, between 50,001€-200,000€ it’s 23% and anything above 200,000€ profit will be taxed at 26%. This tax is applied to on paper profits though so should you have carried out any improvements on the property that has increased its value, ie a new kitchen or bathrooms for example and you have invoices to prove this then these amounts are reduced from the profits. Another important note is that if the property is your primary residence, you have lived there for over 3 years and you’re going to use the funds from the sale to purchase another primary residence you’ll also be exempt from capital gains.
– Non-Residency Tax is applied to those that sell a holiday home in Spain and who reside overseas, ie in the UK. This tax is applicable 100% of the time if the vendor doesn’t live in Spain and equates to 3% of the sale price. If you have made a loss on the sale of the property and are up to date on all your non-residency taxes then this retention can be reimbursed. If you live in Spain perminently then you’ll be exempt from this retention, even if it’s not your perminent residence, by simply providing a tax certificate which your accountant can provide for you.
– Council Tax is a tricky one. Depending on where you search online you’ll read different regulations. Originally, if you owned a property from the 1st January you’d be liable to pay the council tax for that whole calendar year even if it then sold on the 2nd January. A recent supreme court ruling however counters this and what we’re seeing more often than not is a prorrated agreement between both vendors and buyers to share this expense. The bill will always come in the name of the vendors of the property and they will typically pay the buyers their portion of the council tax for the months they owned the property that year and the new owners will then be responsible to pay it as the bills aren’t typically issued from the townhalls until July/August.
– Mortgage Cancellation fees. It goes without saying that if there is an existing mortgage on a property it has to be fully paid off on the day of the sale however some may not be aware that there is a cost to have the mortgage charge lifted at the land registry office. This cost is roughly 500€ and is at the expense of the vendor.
– Other Land Registry Updates. This expense is applied if you have carried out any extensions on the property that don’t show on your deeds. This is a very common occurance, especially when it comes to swimming pools, and is a simple procedure to rectify. I will be making another post going into further detail on this but essentially to update the property description at land registry can cost around 1,500€.
DESCLAIMER: Please note that the above information is solely provided for educational purposes based on our experiences in this sector. We cannot guarantee the accuracy of this information and highly recommend obtaining professional guidance from tax advisors, accountants, or lawyers. Laws and tax obligations are subject to change at any given time.
documentation required to market a property
In order to sell a property in Almeria we have to work in occurdance with Decree 218/2005 which is a law approved in 2006 for all real estate agents in Andalucia.
This law essentially decrees that we have to provide valid and up to date information to buyers about the property they are interested in. In order for us to comply to this regulation we are required to receive certain documentation from vendors which include the following:
– Escritura (Deeds).
– Nota Simple (Land Registry Certificate).
– Most recently paid IBI (Council Tax).
– Copies of utility bills including electric, water, basura and community fees if applicable.
– Energy Performance Certificate or EPC.
– License of First Occupation or Declaracion Responsable.
– A signed contract granting us permission to advertise the property.
This list can seem to be quite daunting at a first glance however we’re here to help! Once we have received a copy of the deeds we’ll be able to obtain both the nota simple and the EPC for you. Copies of utility bills are somewhat more difficult due to almost all companies recently going paperless however if you have access to your online banking you’ll be able to download and share the receipts for each of these including the IBI if you have it set up on a direct debit. The license of first occupation can be sourced from the Townhall by your appointed lawyer and finally a contract will be signed when meeting with us at the property to photograph. If you have appointed us remotely then this can simply be filled in, emailed, signed and returned via email.
appoint a lawyer
If you don’t have a lawyer in Spain it is highly recommended to have one appointed to deal with the sale of the property. This will massively alleviate unnecessary stress and you can then be assured that your best interests will be looked after during the whole sale process.
Leaving a lawyer with a power of attorney will avoid the need for you to continuely travel to Spain as they’ll be able to do everything for you. The POA will enable the lawyers to not only sign documents with your permission but they’ll also be able to attend notary, deposit the funds of the sale to the bank of your choice, transfer funds overseas, close bank accounts, pay any taxes, etc. Essentially they’ll be in a position to be able to do everything needed to see the sale to the end. If you don’t have a lawyer appointed and don’t plan on traveling to Spain don’t worry as a POA can be issued from the UK saving you a trip.
It’s also highly recommended to have a lawyer appointed early on rather than waiting until you have a buyer as they’ll be able to go over all the paperwork of the property and rectify any issues that need correcting as some of these can cause unnecessary delays or even cancelled sales. Examples of these have been mentioned above like the need to update land registry to match the reality of the property. If the property sits on urban land it’s a relatively easy fix causing a minimum of delays however properties on rustic land can take 6 months to correct by the way of an AFO.
Over the years we have experienced many different lawyers in the area. Below is a list of firms that have shown stand out professionalism:
mundi abogados
Maria Maroto & Esther Serrano
info@mundiabogados.com / 0034 950 460 999
Urb. Las Buganvillas 23, Vera Playa, 04621, Almeria.
leticia moreno-torres
Leticia Moreno-Torres & Alicia Serrano
abogada@leticiamorenotorres.es / 0034 950 391 249
Calle Villar 5, Edificio Casino, Office 1º3, Vera, 04620, Almeria (Vera Square)
Martinez-abarca & muñoz abogados (mam)
Raquel Aragon & Corinne Chérel
vera@mamsolicitors.com / 0034 968 334 439
Calle Villar 5, Edificio Casino, Office 1º6, Vera, 04620, Almeria (Vera Square)
davies solicitors
Michael Davies & Estefania Escudero
michaeldavies@daviessolicitors.com / 0034 950 472 775
Parque Comercial 50, Mojacar Playa, 04638, Almeria
AM & RG Abogados
Angela Morales & Chloe Milnthorpe
ms1961@icaalmeria.com / 0034 950 478 984
Paseo del Mediterraneo 355, Mojacar Playa, 04638, Almeria
lex consulting
Linda de Rijck
linda@lexconsulting.es / 0034 950 390 995
Calle Mojigato 1, Vera, 04620, Almeria (Opposite Bullring)
Cabrera Cervantes
Pedro Cabrera Godoy
pedro@cabreracervantes.com / 0034 950 099 400
Avenida Almeria 92, Turre, 04639, Almeria
prepping the property for sale
We’re all very much aware that first impressions are incredibly important and this goes for property marketing too. Not only should the property be presented to its best during the photography stage but this also needs to be maintained. As an agent we see clients reactions from the moment they step through the front door and while many of us claim to be able to see past any faults presented to us this from experience is seldom the case especially when comparing with properties of a similiar price with “less things to do”.
With this in mind here are some recommendations that can be implemented when preparing a property for the market:
– Take a walk around the property with the “eyes of a buyer” and check for little things that are easily sorted like broken flyscreens, broken lightbulbs, loose tiles etc.
– If the property hasn’t been painted in some time it would defintely be worth investing in this. A freshly painted property goes a very long way and while you may love your green or pink walls, whitewashing everything to a neutral tone helps potential buyers see themselves in the property.
– Be sure all your outdoor spaces including gardens and terraces are in good condition. People primarily come to Almeria due to the good weather and idea of spending most of their time on terraces or gardens. These spaces are generally the first areas clients will look to and ultimately become the defining element when making a short list of properties.
– This may seem obvious but be sure that the property is clean and presentable to clients. To oftern have we carried out viewings on properties with washing up in the sink and unmade beds. These are small details but have a lasting effect on the clients. Bonus tip: air freshners placed in each room are a sure fire way for clients to remember your property.
– Access to the property is crutial. While we can work around keyholders there are many times where we’re contacted out of the blue to arrange a viewing and it’s ideal to be able to simply grab a key and show the clients there and then without having to rely on a third party on short notice.
– If you live in the property on a full time basis it might be worth popping out during the first visit of the property and leaving us with the clients. Many clients when viewing feel that they are putting vendors out of their way and may rush through a viewing to simply “get out of your way”. Clients may also have non-existent concerns walking around the property which they won’t bring up in fear of upsetting a vendor however when they are only with an agent they’re more comfortable expressing the concern which can then be immediately addressed. When a client requests a second viewing on the property it is then better for vendors to be home to be able to answer any very specific questions.
– Finally we’re going to need to know what may be included in the sale of the property. As a standard practice properties sold are expected to have included all fixtures/fittings and whitegoods. When it comes to the furnishings however we need to be clear from the moment we start advertising what the situation is. If a vendor is prepared to sell the property with furniture we advise advertising that the property can be sold fully furnished subject to negotiation. Not all buyers will want furniture as they may well be living here already and have no need for it in which case we can help with it’s removal. Most of the time however you’ll likely receive an offer for the property to include furniture minus any personal items.
final remarks
I sincerely hope that you have found this information useful. At this stage I can only wish you the best of luck in the marketing of your property and hopefully you have decided to appoint us as your agent. Our objective is to help our clients achieve their goals and we know that we both have a greater chance of seeing this through by working together. We can promise the highest level of marketing and exposure which combined with the advice provided above will give us a great chance of selling your home in Spain.
If you have any follow-up questions that need clarifying don’t hestitate to get in touch with a member of our team.