Sellers guide to sell real estate in Ibiza
If you are thinking about selling your home, this is the perfect place to start. We will explain what to expect, not only in terms of the selling process but also the taxes that may apply.
Selling a house can be stressful, first you have to make the decision to sell, next prepare the house for sale, keep it clean, wait for a buyer, deal with offers, and eventually dealing with the notary for closing, all of these steps can involve discomfort. This is a big financial transaction which can bring with it many emotional aspects.
But you can get it done and it may even be easier than you anticipate! Most importantly is to keep in mind that you’re not alone! An experienced, professional real estate agent from RE/MAX Isla Blanca Ibiza can guide you through the process, help to resolve any issues which may come up, and ensure that your home sells for the best possible price and as quickly as possible. This doesn’t happen by chance, together with you we prepare your home for a successful sale.
Our experienced agents understand how to accurately price your home and make it stand out in the Ibiza property market. They also have access to a large referral network, enabling them to connect with potential buyers across the island or around the world.
Here are some important reason why your should work with a RE/MAX agent:
The largest real estate network: A big advantage of choosing RE/MAX is having direct access to a network of over 115.000 RE/MAX agents in 100 countries, many of them working with motivated buyers.
Personalised management of sales/purchase: We care about your wishes and no sale or purchase is the same therefore we provide a personalised marketing plan for each sale.
Quick results: The average sales time for properties listed with RE/MAX Isla Blanca is less than 5 months while other agencies average more than 12 months.
Trained and motivated agents: Our agents receive extensive training and coaching before and during their career as a real estate agent. Also our agents are paid by commission only and therefore they are even more motivated to sell your property faster.
Ethical code: Our agents all sign an ethical code to ensure we work in a correct and professional way. At RE/MAX Isla Blanca we give you peace of mind in the sale or purchase of your property.
The largest agency in Ibiza: We have more real estate agents than any other agency in Ibiza and each agent has his/her own client base meaning when your property gets listed with us – one of our agents may already have a buyer.
Collaboration: Besides the thousands of RE/MAX offices worldwide we also collaborate with most local real estate agencies and they all have the opportunity to present a buyer for your property. This way, when you let RE/MAX manage the sale of your property you never miss out on a potential client.
Up-to-date marketing: We follow the latest trends in real estate marketing to ensure you have the fullest exposure of your property. This is both online and offline marketing.
Professional photos: We make professional photographs with well-lit, wide-angled photos that highlight your home’s best features and important rooms.
Property Videos: We make interior and exterior videos including aerial videos with a drone.
3D Virtual Tours: We use the latest technology in 3D Virtual Tours, the first (and only) in Ibiza to use this technology. Giving buyers an inside look at your property online can get them interested enough to schedule a showing, this helps immensely with the speed of sale.
Outstanding and optimized website: An easy to navigate website with great pictures and property description for your home is a very effective online marketing strategy.
Property Portals: Besides our local website we promote your property on the most important local and international property portals. Collectively we use more than 100 portals to promote your property.
remax.es: RE/MAX listings in Spain appear on remax.es, where millions of buyers browse for homes and see listings with multiple photos, property descriptions and other details.
mls.es : All listings in Spain from over 7000 associated agents listed on one page, www.mls.es. An excellent portal for agencies that share commission between agents, giving your house all the exposure you need and every agent the opportunity to sell!
Marketing Center: RE/MAX agents have access to an exclusive Marketing Center that enables them to create professional marketing materials of your home for print and/or online exposure.
The RE/MAX yard sign: The RE/MAX Balloon is among the most recognized logos across all industries, not just real estate. A RE/MAX yard sign in front of your house makes an immediate, positive connection with potential buyers who already know the brand.
Market Analysis: We do an extensive market analysis for each property to determine the best price possible. By doing this not only will you get the best deal on your house, you will also sell it faster than the competition.
No matter the value: We give the same treatment to any property; same amount of effort, time, marketing, promotion and anything else that goes with it. We do however have a special brand for luxury properties above 1 million Euro called The RE/MAX Collection. We have agents that received additional training to work with properties in The RE/MAX Collection.
We work with any property: No matter how small or big, whether it is a villa, apartment, townhouse, plot of land or a commercial property like hotels and shops, we are there to assist you in the sale.
If you want outstanding service with outstanding results, don’t want any longer, contact us now for more information.
Smart, competitive pricing is essential. When you price too high, your home stays on the market longer, prolonging the process and increasing your expenses along the way.
Home Seller Mistake No. 1: Pricing Too High
“I can always lower the price later if I don’t get any offers.”
That statement costs home sellers millions of euros every year.
Of course you can always lower your asking price after a time, but that’s not a great strategy. Time and time again, experience shows that sellers who list competitively from the start get a better price and sell faster than sellers who list high and then go lower and lower.
When you price too high, here’s what buyers think:
“Wow, three price cuts already!… There must be something wrong with that house.”
“With all the price cuts on this house, the sellers must be desperate. Let’s offer them far below what they’re asking and see if they bite.”
A far smarter approach is to work together on setting the right price with one of our experienced agents who understands the local market.
Prepping Your House for Sale
Potential buyers usually get an impression of your home – either positive or negative – within 30 seconds of walking through the door. Therefore your home must be in tip-top selling shape!
There are countless ways to put make a great first impression, most of them costing only a bit of your time. Here are a few pointers for the most significant impact:
Outside: The Power of Curb Appeal
• Clear any clutter and keep lawn decorations to a minimum.
• Mow your lawn and trim shrubs.
• Add bushes and/or colourful flowers.
• Sweep sidewalks, porch and driveway.
• Remove or update any dated or personalized fixtures.
• Put all toys away.
• Fix damaged gutters, shutters, siding or roof shingles.
• Add a tasteful welcome mat to the front door.
• Clean all windows inside and out.
Inside: Leave No Trace
Clean everything! Please de-clutter the house and rent a storage locker if you need to. This is very important for increasing your home’s appeal.
• Add a fresh coat of paint to the walls.
• Remove family photos and excessive wall decorations.
• Remove personal items, such as DVD collections and trophies.
• Replace worn carpets, and shampoo carpets that are dirty but still in good shape.
• Polish wood floors.
• Add fresh flowers or plants, but don’t overdo it.
• Maximize your home’s natural light by opening blinds and shades.
• Do a smell check and address any odors.
• Pet owners: Take Fido or Fluffy with you while your home is being shown.
RE/MAX SELLER TIP!
It’s best for you as a seller to leave your house whilst your agents is showing it to potential buyers. Your presence, though well intended, can make them feel anxious and awkward. Most of all, they will not show their real first impression which in turn can give you a wrong impression. Think about it, would you tell someone to his or her face that you don’t like the house? Probably not and the last thing your agent or the buyers want is to give you a wrong impression.
Another great tip is to write a letter about your neighbourhood which your real estate agent can share with potential buyers. Include information on neighbourhood amenities, local events and other important features that define the community.
Taxes when selling real estate in Ibiza
Just as in the mainland of Spain, owners of property in Ibiza must pay certain taxes when they sell their property. It is important to seek legal advice with your (tax) lawyer in order to prevent excessive taxation or fines.
Capital Gains Tax
When you sell your property in Ibiza with a profit you must pay a capital gains tax called Impuesto sobre Incremento de Patrimonio de la Venta de un Bien Inmueble. The profit is based on the difference between the sale and purchase values. The purchase value is the purchase amount plus the expenses and taxes paid which were involved in the purchase. The sale value is the sale amount minus the expenses and taxes that were paid. The tax rate depends whether you are a resident or non-resident.
Capital gains tax for Residents
A resident of Spain does not have to pay capital gains tax when the property sold is the main residence of the seller(s). However they do need to purchase a new property in Spain within 2 years after the sale otherwise they can still be charged taxes for the capital gain.
If the property is not the main resident than the following tax applies to the capital gains:
· Until the first € 6,000, 19% will be paid.
· For the next € 44,000, you will pay 21%.
· From € 50,000 and up, you will pay 23%.
Capital gains tax for non-residents
Capital gains tax for non-residents is charged at 19% on any gain made. Please note that when you sell a property as a non-resident an amount equal to 3% of the purchase price will be withheld by the buyer and paid directly to the tax office. This 3% is considered as an advance payment for any capital gains tax that might be applicable. After the sale of the property the tax office will determine the exact capital gains tax that needs to be paid if a profit was made on the sale of the property. If the capital gains tax due is more than the 3% already paid, the tax office will bill you for the remaining amount. Should the due capital gains tax be less than the 3% already paid, you will receive a refund from the tax office.
Besides the national capital gains tax, properties in Ibiza are subject to a local capital gains tax known as Plusvalía. This is a local tax (which varies per municipal) that only applies to the increase in value of the land upon which urban properties are built. Upon the sale of the property the Plusvalia tax is calculated on the valor catastral (which is usually lower than the market value) of the property. The amount to be paid depends on how long you have owned the property; the longer you have owned the property, the higher the amount of tax. You can estimate between 0,20% and 0,35% of the value of the land per year.
This tax is supposed to be paid by the seller, however a seller might opt for the buyer to pay this tax. Parties are free to discuss the conditions of the sale but typically the seller will pay it.
Real Estate Sales commission
When you sell your house in Ibiza you are responsible for the commission to be paid to the real estate agent. The standard commission rate is 5% plus 21% IVA, which is also what we charge at RE/MAX Isla Blanca.
If you are ready to list your home with the largest agency in the world or if you would like to have more details on how we can sell your property for the best price and conditions, please contact one of our agents to learn more about our services and terms.