THE

NAKED AGENT
Your Mini-Guide
to Selling your Property

LD
in Spain

O
SO
ID
D
N
VE

By Shaman Chellaram

Sponsored by

www.hamilton-homes.com
www.nakedagentspain.com
The Naked Agent Copyright © 2008 by Shaman Chellaram 1
 The Naked Agent
!

Your Mini-Guide to Selling Your Property in Spain

Selling your property in Spain is by no means an easy task. The current

market conditions probably make it more of a buyerʼs market than a sellerʼs
market. Nevertheless, if you do get the buyer through the door, you really
want to maximise your chances of selling, rather than leaving it to chance.

It is common knowledge that most buyers make up their mind whether or

not they like a place within the first 30 seconds of entering. Therefore it is
essential that as a seller you captivate the buyerʼs imagination as soon as
they walk through the door.

Many sellers fail to present their house in itʼs best light, and as a result lose
the buyer as soon as the buyer enters the property. The key is to play to
all the buyerʼs senses – vision, touch, taste, smell, and sound.

In winter, itʼs amazing what the warmth of a lit fireplace and the smell of
something baking in the oven can conjure up in the buyerʼs mind. In
summer, the taste of a cold beer or a glass of iced-water on the terrace
overlooking the views and swimming pool can really help to sway a buyerʼs
decision.

Remember, as a seller, not only are you selling your house, but you are
selling the type of lifestyle someone can enjoy by owning your house!

Anyway, enough of the fancy talk, and letʼs get down to business.

The Naked Agent Copyright © 2008 by Shaman Chellaram 2

The Naked Agentʼs mini-guide to selling your property in Spain is designed to
give you an overview of the entire sales process. This guide gives you some
essential tips and covers the basics from pricing and preparing your property
for viewing, right through to accepting a deposit and receiving your cheques
on completion at the Notary.

THE KEY LESSONS

1) UNDERSTAND THE COSTS INVOLVED IN SELLING
2) DE-CLUTTER, DE-PERSONALISE AND CLEAN YOUR PROPERTY
3) ENSURE YOU SHOW-OFF YOUR PROPERTY IN ITS BEST LIGHT
FOR VIEWING
4) PRICE YOUR PROPERTY REALISTICALLY & COMPETITIVELY OVER
SIMILAR PROPERTIES IN YOUR AREA
5) ENSURE YOU HAVE ALL THE CORRECT DOCUMENTATION IN
PLACE TO SELL YOUR PROPERTY

Letʼs cover a few of the selling basics and the sales process:

The Selling Basics

The Costs involved in Selling

When it comes to selling your property you must take the

following costs into account, otherwise you will end up with far
less ʻin your handʼ than you expected:
i) Capital Gains Tax: CGT is set at 18% of your profits.
However, if you are non-resident, on completion 3% of your
final sales price will be retained as a partial retention for your
CGT liability. Please note, it is the buyers responsibility to
retain this 3% and pay it to the tax authorities on your behalf.
The Naked Agent Copyright © 2008 by Shaman Chellaram 3
 If your profit is lower than this amount you can claim back the
difference. If it is higher, you should pay the balance to the
Spanish taxman within 2 to 3 months after the sale.
ii) Plus Valia: The Plus Valia is a tax based on the incremental
value of the land which your property occupies over the
amount of time you have owned it. Typically for small
apartments this can be as low as 50 Euros per year of
ownership, whereas for villas it will be significantly higher. The
Plus Valia must be paid within 30 days of the the completion of
your sale.
iii) Mortgage Cancelation Fees (if applicable): If you have an
existing mortgage on your property you will need to pay about
1000 Euros to ensure the mortgage is officially cancelled at
the Notary and Registy Office. Often this amount is retained by
the buyer for them to ensure the fees are correctly
administered. You may also have some cancellation charges
from the bank so make sure you check.
iv) Legal Fees: If you choose to use a lawyer to help you when
you sell, the conveyancing fees will be about 1% plus IVA/VAT
v) Ensure all your community fees,, IBI (rates) and utility
bills are up to date. If any of these bills are not up-to-date the
buyer may insist on retaining any outstanding amounts due
from the sales price
vi) Real Estate Agents Fees: If you have sold your property
through an agent, ensure you take their fees into account.
Typically these fees will be about 5% plus IVA.
Always consult your lawyer or tax advisor before selling your
property, so you know exactly where you stand tax-wise,

The Naked Agent Copyright © 2008 by Shaman Chellaram 4

 The Sales Process
Get your property ready for sale

Step 1: Ensure You Have Correct Documentation

• Check all the paperwork you have for your property
• Ensure you or lawyer has the Original Escritura (Title Deed)
• Ensure you have an up-to-date Nota Simple to confirm the
property is correctly registered in your name
• Keep a copy of the IBI, community fees & utility bills.
• Ensure you have a copy of the necessary Licences
• If you plan not to be around, leave a Power of Attorney with
your lawyer to sign any documentation on your behalf

Step 2: Set your Price

• If you are eager to sell, price your house competitively.
• Compare your property to others on the market: Ask a few
agents and check online.
• Do not let your emotions take over when pricing. Be
realistic, and your property will probably sell. Be greedy,
and you may be waiting a while!
• The secret is always to leave a little bit of profit in it for the
next man.
• Ensure you take into account all the costs mentioned above
so have a good idea of what you will walk away with ʻin your
handʼ after paying all your fees and taxes.

The Naked Agent Copyright © 2008 by Shaman Chellaram 5

Step 3: Market Your Property
• Select two to four real estate agents to market your property
• Ensure the price is the same across the board
• Ensure the agents get the correct property documentation
• Ideally donʼt put it on exclusively with one agent, unless there
is good reason to do so
• Donʼt try to bargain the agentʼs fees up front. Ultimately, you
want them to sell your house, but if youʼre asking for a discount
even before they have brought you a client then what hope do
you have of really getting them to focus on your property as
opposed to your competitorsʼ
• Market your property online (either directly or through agents)
• Take good photos to show off the property in its best light
• As it is your property, write a good description which best
captivates the essence of your place.
• Confirm whether the property is sold unfurnished or furnished

Step 4: Property Viewings

• Ensure your property is clean, uncluttered & depersonalised
• Draw back the curtains, open some windows and switch on
the lights so the property looks bright and airy. You want to
show off the property in its best light
• Light some candles or have some nice cooking aroma, so you
conjure up a homely feeling so the buyer immediately thinks
to himself/herself: “ I can picture myself living here”
• When the buyers arrive, give them a quick overview of the
property. Walk them through the main door and show them
around. You or the agent can do this.
• If you feel a good vibe from the potential buyers, let them
have a wander around themselves to give them a sense of
whether they can picture themselves owning it.
• If they come back for a second viewing, give them more time
to look around themselves and answer any questions.
The Naked Agent Copyright © 2008 by Shaman Chellaram 6
Step 5: Negotiating, Getting a Deposit and Signing
the Reservation / Private Contracts
• The buyers may be keen to talk numbers, but if they really like
your property they first need to conduct the necessary
property checks, and consult their bank/broker if they need a
mortgage. Their lawyer or the agent will get in touch with you
or your lawyer to get the necessary documents.
• The buyer may make an initial offer through the agent
• Once the property checks and mortgage approval are sorted,
the buyer will make a formal offer. How low you go and what
final price you are willing to accept is entirely up to you and
your personal circumstances (but always take in account the
fees, selling costs and taxes mentioned above). Many sellers
fail to do that, and as result have ended up with far less in their
hands than they expected after the sale has completed.
• If you agree a price, they may wish to pay an initial holding
deposit subject to all the checks being in place. This deposit
may be paid to your agent or to your lawyer, but always make
sure there is something binding in writing, with you both yours
and the buyerʼs signature, so you both know exactly where
you stand.
• Ideally, as an owner you want a non-refundable deposit
• Typical deposit amount is about 10% of the price, payable in 2
stages: an initial holding deposit and the balance on signing
the private contract. 15 to 30 days later. However, the terms
of the deposit are negotiable.
• Agree all the terms and conditions. Stipulate a maximum
completion date. Agree the status and amount of the deposit.
You may also be liable to give double back if you pull out. That
way both buyer and seller are equally protected. Alternatively,
the buyer can sign an ʻoption to purchaseʼ contract. Discuss
which type of contract is best with your lawyer.
!
• Once all the Ts and Cs are agreed, sign the private contract
and receive your money

The Naked Agent Copyright © 2008 by Shaman Chellaram 7

Step 6: Get Ready For Completion
• Make sure all your documentation is in place.
• Agree a formal Notary completion date & time with the buyer
• If you are unable to sign in person, grant power of attorney
to your lawyer to sign on your behalf.
• If you have a mortgage, speak to you bank to ask for a
Certificate (Certificado de Deuda) confirming how much
mortgage you will owe on the completion date. Ensure your
bank will present on completion to cancel your mortgage.
• Prepare the breakdown of how you would like the buyer to
pay the balance of the sales price on completion
• Once verified, send that through to the buyer / buyerʼs
lawyer so that they can have the necessary Bankers Drafts
drawn up to be handed over on completion
• Ensure all your bills are up to date. Get a copy of the latest
paid IBI receipt, and a certificate from your community
administrator stating your fees are up to date
• Ensure the Notary gets a copy of the documentation for
completion at least 3 days before the completion date

Step 7: The Completion Day

!

• Arrive at the Notary with all your correct documentation.

• Non-residents will need their original NIE Certificate, passport
and the escritura; Residents will need their DNI, or their passport
and the EU Certificate of Spanish Residency and the escritura
• Check over the purchase title deeds (Escritura de Compraventa)
prepared by the notary and confirm all the details
• The deeds will be reprinted on formal Notary paper. Then you,
the buyer and the Notary will sign them. At the same time make
sure you have received your cheques for the balance of the sale
from the buyer. Always check the amounts and name carefully
• Hand over your keys and associated documents to the buyer.
!
• Deposit your cheques in your Spanish bank. Tip: Tell your bank
not to charge you too much for depositing the cheque!
The Naked Agent Copyright © 2008 by Shaman Chellaram 8
Step 8: Post Completion
• Make sure you pay off your Plus Valia Tax within 30 days of
completion
• If you are non-resident, the buyer should pay your 3%
retention straight to the taxman. Make sure you or lawyer
get a copy of the stamped payment (modelo 211) once it
has been done
• Inform your lawyer or tax advisor post-completion so you
know when you will need to pay off the rest of your Capital
Gains Tax

If you require any more information on the sales

process and want some straight-forward advice
contact:
Hamilton Homes
Tel: +34 952890444
e-mail: info@hamilton-homes.com
www.hamilton-homes.com

Good Luck selling your home the Naked Agent Way!

Planning on selling your property to trade up or down? Then read:

The Naked Agent

Your Stripped-Down Guide to Buying a Property
and Getting a Mortgage in Spain
www.nakedagentspain.com

The Naked Agent Copyright © 2008 by Shaman Chellaram 9