Tenerife property guide for selling with best results.
This Tenerife property guide will help you to sell on your own or together with an agent.
Basic Tenerife property selling options
- Sell through an agent who may charge you in the region of
6% commission or
- Handle a property sale by the
Tenerife owners direct method clearing hurdles with a Tenerife or Spain lawyer...
- Mind the lawyer not to charge more than 1 to 1,5 per cent while a real estate agent sets you back 6 or more per cent
- Selling your key property Tenerife directly means, generally,
being more competitive and more flexible. Also, it signifies a better property price for both parties, often.
Tenerife property guide for first best impressions
- Have your home look clean and tidy with emphasis on well groomed.
Your home should look new inside and out even, if it isn't.
- A new coat of paint should not be given in the last minute.
- Include garden, veranda and balconies for best property impressions.
- Use paid help when not able to do all yourself during critical times.
Tenerife property guide on advanced strategies for sales
- Dog owners should ask potential Tenerife property for sale buyers if they mind them.
If yes, dogs must be out of the way during property inspection.
- Please, point out to dog lovers your dog friendly property. (when true)
- Give your property the welcoming touch when expecting buyers.
- Place fragrant flowers in focal points
- A pot of deliciously smelling coffee make for a homely feel.
- Use air fresheners sparingly if need be
- Have your curtains dry cleaned before putting your Tenerife property onto the market.
- Don't have your house crowded with people during property visits and, keep music low.
Tenerife property guide on documentation required for selling
- Have the Nota Simple handy which is your ownership registration together with your identification
- Building licenses and invoices for recent repairs.
- Pointing out some minor problem might create trust.
- Promesa de CompraVenta which is a buying and selling promise
- Arrange for the signing of title deeds with a Public Notary the Notario in Spanish
Tenerife property guide to understand Bona fide
However, a Notario signs with bona fide. This means 'in good faith and is a Latin legal expression.
For example, if a buyer states that he believes that no property debts are outstanding, the Spanish Public Notary will take this for granted. Why?
It is the duty of the buyer to check up on such things and not the Notario's. A lawyer would handle such a matter, rather.
Tenerife property guide for money transfers
- It is also an option to keep the money deposit in a property trust account of a lawyer.
- Also, mention a lawyer's much cheaper escrow services to transfer final payment out of the country. This may save
both parties a substantial amount of capital.
Tenerife property guide on Plus Valia sale's tax in Spain
What kind of a property tax is this?
- Plus Valia tax is a value added land's tax of every real estate transaction. It also applies with inheritance.
The longuer the time between the buying and selling of a property, the higher this tax.
- Plus Valia tax is very low, compared to other property taxes.
- However, if you purchase a villa, which was bought by your seller, 50 years ago, be up for a heavy surprise in Plus Valia...
Otherwise, its valuation depends totally on the local municipality administration which may be located in the town hall.
- Los Realejos land values are the cheapest in Tenerife, for example. Consequently, the value increase tax of real estate works out lower than in other Tenerife towns.
Who should pay the plus Valia sales tax?
- The seller should pay this tax by law, unless he is a non resident and must leave in a hurry.
In this case, an agreement may be stipulated in the deeds of sales that the buyer pays for this value added land tax;
the tax should be deducted from the sale's price, under such circumstances.
How work out your plus valia tax?
The deeds of sale must state if the buyer or seller will pay the plus valia, an important sale's fact the Spanish Notary will look out for.
- Look up the IBI tax (catastral tax) of the property which is to be sold... Find the figure for the land tax value (valor suelo) to base the Plus valia calculation on...
- Get this IBI receipt from your bank, as this is the easiest way to handle IBI payments automatically every year...
- By the way, the IBI 'tax due times' vary a little in Tenerife regions.
Tenerife property guide hot tip
- Please, note: A UK buyer may take advantage by purchasing property from a UK seller with bank account in England by having the money transferred within banks in the UK.
- The Notario will need proof of this financial property transaction. It could be handled by fax, unless he requires a proper bank certification. A certified, sworn in translator is needed at this moment, if the Spain notary doesn't understand enough English
Other useful advice
- Learn Spanish to be able to communicate with potential Spanish buyers without the need of an interpreter...Also, you will have better control of what is discussed and will feel less left out.
Speaking the language of locals helps for selling better
- Use my best method to learn Spanish to get over the first hurdles of inhibitions and to make learning more fun.
- Take advantage of flying to Tenerife on the cheap which is ideal for overseas property owners...
- In case, you want to sell to buy specific and different real estate, research before getting rid of a property... For instance, it may be wiser to stick with a property that brings in good rent than exchanging it for another one which might be a "gamble" with profitability uncertainties.
- On the other hand, who doesn't grab a chance, cannot win!
Contact me the Tenerife property guide if any additional insider tips are needed...
Living in Tenerife and overseas retirement advise
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