If you are considering selling your house, but you are not exactly sure what you can expect of the process, you have come to the right place. In this guide you will find all the necessary information about how Villas & Fincas Country Properties guides the selling process. These are the steps we undertake to sell your property.
Step 1: Property & Portfolio
The very first thing we do is make sure your property matches our portfolio. Villas & Fincas specialises in Luxury Country Homes and inland properties in Andalusia. We have experience with:
- Exclusive country houses
- Equestrian farms
- Hunting estates
- Vineyards and olive groves
We have been active in this market since 2001 and have built up a niche profile. We have an excellent feel for the profile of our buyers as well. Together with the knowledge of different areas and lifestyles inland Andalusia we are able to make the right match between properties and buyers.
We only take properties in our portfolio that we know we can sell. We want to be completely transparent with you. When we have received the initial basic information about your property, such as location, size, quality and legal status, we can give you our honest opinion about whether we are the adequate real estate agency for you.
If your home matches our expertise, we will confidently begin the process with you. We will now do a more extensive study on the documentation on your house and will visit you on location to advise you on price and preparations to guarantee a successful sale. Read our guide on how to price your Andalusian country property. At this stage, we advise you to prepare the necessary documents to sell your Andalusian country property. Finally, we also advise you to prepare and style your home.
Step 2: Commission Agreement
Given we have a thorough knowledge of both the local area and market, we can provide you with an accurate valuation of your house.
Once we have agreed on a listing price we then formulate a clear and simple sales commission agreement, in which we specify whether we market your property exclusively or not. This is also the moment to establish whether or not the property is sold fully furnished or not. Personal items are never included. A full inventory can be drawn up at this time, yet most of the time we wait with this until there is an agreement with a buyer.
Our commission is 5% of the sales price, excluding IVA. If we have an exclusive contract this means that a full range of extra services will be included.
The seller is asked specifically not to withhold any important information with reference to the property and to provide a copy of all documents required by law. The seller must be aware that by law we will keep all the data with reference to the property until 5 years after the sale.
Step 3: Dossier & Visuals
Upon commission agreement, we create a property dossier. The more we know about your property the better we can sell it. We know our properties in and out. On the one hand with regards to the legal status, but also the functioning of the house, the installations, the running costs, possible income, and quality of finishing.
For the publication on our website we prepare an extensive description. Additionally, we will do a full photoshoot, prepare a short property video and sometimes a walk through video. The photos and video’s include drone footage to provide our buyers with an extensive visual presentation. Very often we include video content and extra information of the direct area. Finally, we create content for our social media campaigns.
Step 4: Promotion, Viewings and Negotiation
In promoting your property, we target prospective clients using the following methods.
We have built up an extensive database with prospective buyers and collaborators. In our database we can filter existing clients that match with your property. We contact them and actively offer them your property if we believe they are a suitable client for your property. Furthermore, through our weekly newsletters, we promote new buying opportunities as well.
We work with other agents, nationally and internationally. They receive an overview of our new listings and we share our commission with them if they introduce a client to us.
Our website is our most important tool and we keep fine tuning and focusing on getting top rank positions on specific search criteria. Furthermore, through our social media channels, Instagram, Facebook, LinkedIn, YouTube, TikTok and Pinterest, we promote your property thoroughly. Finally, we perform targeted marketing campaigns on Google and other social media platforms.
When prospective buyers contact us we always speak to them personally before we organise a viewing to your house. We don’t want to waste your time and, therefore, check the requirements of the buyers, so we know who we will bring to your house. We filter out the right candidates and only then organise viewings.
We like to give you a few days notice before a viewing. We know you need time to prepare your house. By this time, the potential client will have been fully informed about the details of the property, the location, the amenities in the area, and any important specifications. A viewing will always be accompanied by one of our agents, who has the full information and technical details on your property. Since buying in the countryside also involves getting to know the area, we often include reservations in a nearby restaurant, or a quick tour through the area.
We want to share 2 tips with you regarding viewings. First, make yourself scarce during the viewings. The first viewing especially. The prospective buyer needs to be able to experience it as their home. We know the client and their desires and will therefore highlight the qualities of the house that stand out to them. When the homeowner is present, the homebuyer might not feel free to express his or her sentiments and doubts. Second, please take notice of the fact that not all buyers are fond of pets. Dogs should be on a lead at arrival and cats, if possible, in a closed room.
The next step in the process is negotiation. When the buyer feels they have found their new dream home, they will put through an offer and we will present this to you. Negotiation involves not only coming to an agreement of the price, but also the timing:
(1) When will the funds be available for the down payment
2) What is an ideal completion date for both parties
It is also at this time when you decide what furniture can be included in the selling price and what value that represents.
Step 5: Formalising the Sale
When we’ve come to an agreement with a buyer, Villas and Fincas will prepare a reservation contract, to be signed by both parties. It is a token of goodwill between buyer and seller. It states the sales conditions and the time reserved for the buyer’s lawyer to perform a legal and technical due diligence and to draw up a private purchase contract together with your lawyer. The buyer pays 10.000€ to Villas & Fincas client’s account. In principle this is a non-refundable reservation fee, yet it will be refunded if the lawyer finds a legal or technical hazard that cannot easily be resolved.
Private Purchase contract
The next step is the exchange of private contracts. This will be drafted by the lawyers of the respective parties and monitored by Villas and Fincas. It states all the conditions of the sale and the payment method. This usually happens within 3-4 weeks of signing the reservation. In the private contract, “contrato de compraventa”, “contrato de arras” or “contrato de opción de compra” in Spanish, the following details are specified:
- The parties
- The property
- The price
- The method of payment
- The date of completion
- Other conditions to be fulfilled before completion
*It is of essence that all important conditions are specified and described clearly and in detail. This prevents any misunderstandings.
When signing this Private Purchase contract, the buyer must pay 10% of the sales price agreed upon. Once the private contract has been signed and paid, it becomes a binding contract. Therefore, if the buyer decides not to continue, they loose the invested money: the reservation deposit and the previously mentioned 10 %.
If the seller decides not to continue, he/she must pay back the reservation deposit, plus an additional 20% of the selling price.
Step 6: Completion
Completion normally takes place at a notary public, when the Title Deed (escritura) is signed and the balance of the purchase price is paid. The possession is then handed over to the purchaser. If you can’t be there yourself you can sign a Power of Attorney to your lawyer to sign and receive payments on your behalf. At completion the notary will request your ID and NIE (or the POA), the energy certificate of your property and, if applicable, a certificate from the tax office in Spain that you are a tax resident in Spain.
Step 7: After sales procedure
Once the sale is formalised the buyer’s lawyer will arrange to change the name in the service contracts, such as water & electricity. They will also change the name of ownership in the cadastre. Most of the time a provision of funds is withheld to pay for the overlapping periods. Your lawyer or tax advisor will assist in declaring the sale to the Spanish tax authorities.
- After sales service
Our dedication to you does not end after the sale. If you were to have any questions or matters you would like to discuss, our door will always remain open to you.
- The vendor’s costs
There are costs involved when you sell your country property in Andalusia. We have outlined and explained them in our guide Costs for vendors.
It is important to prepare for the sale in advance, to check whether all relevant documents are in place to smoothen the process. Choosing the right professionals to handle the sale is essential. Knowing all of the costs and taxes in advance is particularly recommended in order to avoid unexpected surprises after the sale.
We believe that finding the suitable and worthy partner is crucial in helping you through the sale. Click on the link to read why Villas & Fincas is the right partner for you in selling your country property.
Danielle Ernstsen | 13th December 2022