The Selling Process
People sell their property for a multitude of different reasons, from simply moving to a different area, trading up or downsizing, to selling second home or investment properties.
No matter what it can be a daunting experience and needs to be dealt with correctly in order to make the most of your investment.
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Once you have decided to sell, these are the main steps you need to consider:
1. Assess Your Finances
Assess the overall situation by taking a comprehensive look at your finances in regard to your property.
First of all get a valuation on your house and then get an exact figure as to how much is owed and what your outstanding mortgage is. Make sure that you check with your lender on whether your mortgage contains an early redemption penalty or not so as you can take this figure into account when you do your calculations. Work with your lawyer and agent to make sure that you have taken into account all other payments that need to be made upon completion. This will ensure that you are well prepared and will know the minimum price you need to achieve in order to get the result that you desire.
2. Preparing Your Home
Before you decide to market your home it is essential to make sure that it is presented in its best light before enticing potential buyers in.
First impressions are lasting impressions. Most people decide within the first couple of minutes whether they like somewhere or not so make sure that any maintenance or repairs are attended to ahead of putting it up for sale. You need to maximise the potential and staging the home for sale can give you the edge that you need to ensure that your property is sold as quickly as possible along with achieving the best possible price.
On the flip side be careful not to spend too much. Although it is likely to speed up the sale it still may not increase the price that you achieve. In most cases people will change the decor to match their tastes shortly after they move in so unless money is being spent on things which add value to the property – improvements such as double glazing or extending the useable space – then it is best to go for maximum impact with minimum outlay.
3. Pricing Your Home
The selling price is determined by lots of factors such as individual improvements/extended living space/orientation etc. as well as location and the current market so it is vitally important to speak to someone who has knowledge of the local market in order to help and guide you along this path.
It is critical not to put prospective buyers off by pricing your property too high. Setting the price unrealistically high in order to lower it once an offer comes in can be a high risk strategy. If you do this then the majority of suitable buyers may not even get to see it because it falls outside the range of their budget or other agents may choose not to show it because it is overpriced compared to other available properties. This can lead to a process of dropping the price several times in order to attract the right buyers and can be really detrimental to the outcome. You may even achieve a much lower price in the end because to all intents and purposes it could look as though there is something fundamentally wrong with it. This is likely to cause people to have doubts about it and can put people off looking at all.
On the flip side it can also be detrimental to set the price so low that it leaves no room for negotiation as this could be an important factor when you begin to receive offers on it. Make sure that you use the advice of a local expert to get this delicate balance correct at the outset.
4. Comparing Your Home
Make sure that you are aware of current active listings nearby as well as similar properties which have recently been sold. Ask your agent about similar properties that are currently under offer as well as this will give you a really good idea as to what the current climate is for your area.
5. Marketing Your Home
The most successful vendors are ones who work with the agent to achieve the goal in as short a time as possible. The marketing that the agent will undertake – alongside ensuring the property is presented in the best possible light – can be helped enormously by being as flexible as possible with viewings. Allowing the maximum amount of prospective buyers to view the property by making it as accessible as possible can be hugely helpful when it comes to soliciting a sale.
If you are not living in the property then it makes much more sense to leave a set of keys with the agent so as they can take every prospective buyer there to view the property at a moment’s notice. If you leave keys with a neighbour/the gardener/security company then you are putting extra obstacles in the way. The more convenient it is and the more people you can get to view the property the quicker you will get a result, all things being equal.
A good agent will work with you to implement a plan that will effectively coordinate all of these things to make sure that your house gets maximum exposure in the best possible way.
6. Negotiating To Achieve The Best Possible Outcome
There are several things which can sway either party into agreeing to an offer. First and foremost of course is the amount of money being offered; however there are other details to take into consideration such as completion dates, contents included in the sale and – in some cases – currency exchange rates.
When a buyer makes an offer you should review all the relevant details. If you reject the offer let your agent know what changes you would find acceptable. He or she will be able to use this information to move you closer to the desired outcome – one where both the buyer and the seller feel that they are getting the best deal possible.
7. Completing The Sale
Completing the process takes part in the Public Notary office when the documents are formally presented to the Notary and the public title deeds are signed by the new owners. The presence of both buyer and seller or their representatives is required on the agreed date of completion. The Notary reviews the relevant documents and receives the funds from the buyer. Any mortgage payments and expenses will be deducted and a statement of adjustments will be handed over to you along with the balance. This will be transferred to you in the form of a bank draft.
All of these figures will be presented to you in the early stages of the process by your lawyer so you will know exactly what to expect ahead of completion.
Once the deeds are signed the buyers take legal possession of the property. The Notary will hand a copy to the buyer and the originals are sent to the land registry in order to name of the new owners.
We highly recommended that you use a Spanish lawyer to make sure that the selling process goes smoothly.