Frequently Asked Questions

Single Point of Contact: In Spain, you only need one agent acting on your behalf because all agents have access to the same database of properties for sale. This means that regardless of which agent you choose, they can show you the same properties available on the market. Rather than confusing yourself with multiple agents, having one dedicated agent can streamline the process and ensure efficient communication and coordination.

Expertise and Experience: Real estate agents possess in-depth knowledge of the local market trends, pricing, and regulations. Their experience can help you navigate through the complexities of buying or selling a property.

Access to Listings: Agents have access to a wide range of listings through multiple listing services (MLS) and their professional networks, which can help you find properties that match your specific needs and preferences.

Negotiation Skills: Real estate transactions involve negotiations, and having a skilled negotiator on your side can be invaluable. Agents can negotiate on your behalf to get the best deal possible, whether you’re buying or selling.

Guidance and Advice: From pricing strategies to legal documentation, real estate agents provide guidance and advice at every step of the process. They can answer your questions, offer insights, and help you make informed decisions.

Save Time and Effort: Searching for properties, scheduling viewings, handling paperwork, and coordinating with various parties can be time-consuming and overwhelming. With a real estate agent, you can delegate these tasks and focus on other priorities while they handle the legwork.

Professional Network: Real estate agents have a network of professionals, including mortgage lenders, home inspectors, and attorneys, who can assist you throughout the transaction. This network can streamline the process and ensure a smooth closing.

Market Insights: Agents stay updated on market trends, property values, and emerging opportunities. They can provide valuable insights to help you make sound investment decisions.

Overall, hiring a real estate agent can simplify the buying or selling process, save you time and effort, and ultimately help you achieve your real estate goals more effectively.

The time it takes to sell a property can vary depending on various factors such as market conditions, location, property type, price, and the condition of the property. While some properties may sell quickly within days or weeks of listing, others may take several months or even longer to find the right buyer. Here are some factors that can influence the time it takes to sell a property:

Market Conditions: The current state of the real estate market can significantly impact the speed of the sale. In Costa del Sol, the market is known to be particularly hot, meaning that if the price is right, properties can sell very quickly. This region’s popularity among both local and international buyers can lead to a faster turnaround time for properties that are priced competitively.

Location: The location of the property can play a crucial role in determining its marketability. Properties in desirable neighborhoods or areas with high demand may sell more quickly than those in less desirable locations.

Property Type: Different types of properties may have varying demand levels and appeal to different types of buyers. For example, single-family homes may attract families, while condos or apartments may appeal to young professionals or retirees.

Price: Pricing the property competitively is essential for attracting potential buyers. Overpricing can deter buyers and prolong the time it takes to sell, while pricing it too low may lead to selling below market value.

Property Condition: The condition of the property can also affect its marketability. Well-maintained properties that are staged properly tend to attract more buyers and sell faster.

In summary, while the time it takes to sell a property can vary, being mindful of market conditions, pricing competitively, and ensuring the property is well-maintained can help expedite the selling process, particularly in hot markets like Costa del Sol.

Purchase or Closing Costs: Typically range from 11% to 14% of the property purchase price. This includes Transfer Tax (ITP), Notary fees, Land Registry fees, legal fees, and VAT for new-build properties.

Spanish Mortgage Costs: An additional 2% to 4% of the property purchase price if you obtain a Spanish mortgage.

NIE Number and Utility Connection Costs: Additional costs for obtaining an NIE number and connecting utilities.

Transfer Tax (ITP): Ranges between 6.5% and 10% of the property purchase price, depending on the region of Spain.

Notary Fees: Approximately 0.5% of the purchase price, typically ranging from €300 to €1200.

Land Registry Fees: Typically between €400 and €600 or 0.4% of the purchase price.

Legal Fees: Usually around 1% of the purchase price plus VAT, with a minimum fee.

VAT on New-Build Properties: 10% VAT for residential properties and 21% for plots of land and commercial premises.

Stamp Duty: Payable at a rate of 1.2% if VAT is payable.

Transfer Tax (Second Transfer): Usually between 8% to 10% for resale properties, payable to the Spanish Treasury within 30 days of signing the title deed.

Plusvalia: A tax based on the increase in the value of the land since the last transfer.

As a non-resident, you can still buy property in Spain, but you may need to pay additional taxes such as Stamp Duty and Transfer Tax.

It’s essential for buyers to carefully consider these fees and taxes when budgeting for a property purchase in Spain, and consulting with legal and financial professionals can help ensure a smooth and transparent transaction process.

When selling your home, you can typically expect to pay between 4% and 6% in real estate commission to your listing agent. However, it’s essential to note that the commission percentage is not set in stone and can vary based on various factors such as the local real estate market, the services provided by the agent, and negotiations between the seller and the agent.

Here are a few points to consider regarding real estate commission:

Negotiability: Real estate commission rates are negotiable, and sellers may be able to discuss the commission percentage with their listing agent before signing a listing agreement.

Market Factors: The prevailing market conditions can influence real estate commission rates. In competitive markets where demand is high, agents may be more willing to negotiate lower commission rates to attract listings.

Agent Services: The level of services provided by the listing agent can also affect the commission percentage. Sellers may opt for full-service agents who offer comprehensive marketing strategies and assistance throughout the selling process, which may justify a higher commission rate.

Dual Agency: In some cases, sellers may engage in dual agency, where the listing agent represents both the seller and the buyer. In such situations, commission rates and arrangements may be negotiated differently.

Legal Regulations: Real estate commission rates may be subject to legal regulations or guidelines set by local real estate authorities or associations. Sellers should familiarize themselves with any relevant regulations in their area.

Ultimately, sellers should discuss commission rates and terms with potential listing agents to ensure a clear understanding of the services provided and the associated costs. Working with a reputable and experienced real estate agent can help sellers navigate the negotiation process and achieve their selling goals effectively.

Here’s a summary of why a due diligence assessment is crucial and how it covers aspects typically addressed in a home inspection:

Legal Purity: Checking the legal status of the property ensures that there are no outstanding debts, property taxes, or other legal issues that could affect the transaction.

Technical and Urban Planning Audits: These audits involve assessing the technical and structural aspects of the property, including its compliance with building regulations, energy efficiency, and any potential issues with urban planning laws.

Technical Expertise: Technical assessments focus on evaluating the condition of the property, including its structural integrity, maintenance status, and compliance with regulatory requirements.

Tax Audits: Tax audits ensure that the transaction complies with relevant tax laws and regulations, including VAT, stamp duty, and transfer tax.

Types of Reports: Depending on the buyer’s needs, various types of reports can be obtained, including assessments of the property’s condition, valuation, mortgage research, and technical inspections.

While the due diligence process in Spain may not always involve a traditional home inspection conducted by a licensed inspector, it covers similar aspects and aims to provide buyers with a comprehensive understanding of the property’s legal, technical, and financial status before completing the transaction. Working with experienced professionals, such as lawyers, real estate agents, and independent experts, can help ensure that the due diligence process is thorough and effective in identifying any potential issues or risks associated with the property.

Mortgage Financing: If you’re planning to buy a property in Spain and don’t have sufficient savings or equity, you’ll likely need to secure a mortgage to finance the purchase.

Minimum Deposit: For a Spanish mortgage, a minimum deposit of 30% of the property’s purchase price is typically required. This means you’ll need to have this amount available as your down payment.

Interest Rates: Borrowing rates for Spanish mortgages currently start around 2%, although rates may vary based on factors such as your creditworthiness and the lender’s terms.

Loan-to-Value Ratio: The maximum mortgage for non-residents is usually 70% of the purchase price or valuation, depending on which is lower. This means that the down payment plus the mortgage amount must cover at least 30% of the property’s purchase price.

Repayment Terms: Interest-only mortgages are no longer available, and borrowers typically choose between fixed-rate and variable-rate mortgages. Fixed-rate mortgages offer predictable monthly payments over a set period, while variable-rate mortgages can fluctuate based on market interest rates.

Insurance Requirements: Home and life insurance are usually compulsory for all borrowers securing a Spanish mortgage, although some brokers may offer options where this is not the case.

Bank Properties: If you’re purchasing a repossessed property from a bank, the mortgage terms may differ, with some lenders offering higher loan-to-value ratios to offload repossessed stock.

Considerations: It’s essential to understand the terms of your mortgage agreement, including repayment obligations and any associated fees or penalties. Failure to keep up with repayments could result in the risk of losing your property.

Determining how much you can spend on a home purchase involves evaluating your financial situation, considering various factors such as income, expenses, savings, and debt. Here’s a step-by-step guide to help you understand what you can afford:

Evaluate Your Finances: Start by reviewing your income sources, including salary, bonuses, investment returns, and any other sources of income. Next, assess your monthly expenses, including housing costs, utilities, groceries, transportation, debt payments, and discretionary spending.

Calculate Your Debt-to-Income Ratio: Lenders typically use the debt-to-income ratio (DTI) to assess your ability to manage monthly payments. Calculate your DTI by dividing your total monthly debt payments (including potential mortgage payments) by your gross monthly income. A DTI of 43% or lower is generally considered favorable for mortgage approval.

Assess Your Savings: Determine how much you have saved for a down payment, closing costs, and other homeownership expenses. A larger down payment can lower your monthly mortgage payments and improve your loan terms.

Consider Additional Costs: Factor in additional expenses associated with homeownership, such as property taxes, homeowners insurance, maintenance, utilities, and HOA fees (if applicable). These costs can vary depending on the location and size of the property.

Get Pre-Approved for a Mortgage: Obtain pre-approval from a lender to determine how much you can borrow for a mortgage. Pre-approval involves a comprehensive financial review and provides you with a clear understanding of your purchasing power and potential mortgage terms.

Set a Realistic Budget: Based on your financial assessment and pre-approval amount, establish a realistic budget for your home purchase. Consider not only the maximum loan amount you qualify for but also your comfort level with monthly mortgage payments and overall housing expenses.

Use Online Calculators: Utilize online mortgage calculators to estimate monthly mortgage payments, affordability, and potential loan terms based on different down payment amounts, interest rates, and loan durations.

Consult with a Financial Advisor: If you’re uncertain about your financial situation or need personalized guidance, consider consulting with a financial advisor. They can provide insights into your overall financial picture, help you prioritize financial goals, and make informed decisions about homeownership.

By carefully evaluating your finances, considering all associated costs, and obtaining pre-approval from a lender, you can determine a realistic budget for your home purchase and make confident decisions throughout the homebuying process.

Professional Guidance: Sky Estate, with their experienced real estate professionals, can provide valuable insights and recommendations based on their expertise in pricing properties effectively. By choosing Sky Estate, you can rely on their expertise to handle the complexities of pricing your home, ensuring that it is competitively positioned in the market and poised for a successful sale. Determining the right listing price for your house is crucial for attracting potential buyers and maximizing your chances of a successful sale. Here are steps to help you determine the appropriate listing price:

Conduct Comparative Market Analysis (CMA): Begin by researching recent sales of similar properties in your area. Look for homes that are comparable in size, age, condition, and location. Analyze both active listings and recently sold properties to get a sense of the current market trends and pricing.

Consider Market Conditions: Evaluate the current real estate market conditions in your area. Is it a seller’s market with high demand and low inventory, or a buyer’s market with more supply than demand? Market conditions can influence pricing strategies.

Assess Your Home’s Unique Features and Condition: Consider the specific features, upgrades, and condition of your home compared to other properties. Factors such as curb appeal, interior finishes, layout, and recent renovations can impact the perceived value of your home.

Account for Location: Location plays a significant role in determining a property’s value. Factors such as proximity to amenities, schools, public transportation, and neighborhood desirability can affect pricing.

Consult with Real Estate Professionals: Reach out to local real estate agents or appraisers for their expertise and insights. They can provide you with a comparative market analysis, assess your home’s value, and offer recommendations for pricing.

Consider Pricing Strategies: Depending on your goals and market conditions, you may opt for pricing strategies such as pricing competitively to attract multiple offers quickly or pricing slightly above market value with room for negotiation.

Factor in Closing Costs and Negotiation Room: Keep in mind closing costs, potential repairs, and negotiation room when setting the listing price. Buyers often negotiate the sale price, so leave some flexibility in your pricing strategy.

Review Online Valuation Tools: Utilize online valuation tools and platforms to get an estimate of your home’s value. While these tools can provide a rough estimate, they may not account for all factors affecting your home’s value.

Revisit and Adjust Pricing as Needed: If your home doesn’t receive offers or adequate interest within a reasonable timeframe, be prepared to reassess and adjust the listing price accordingly. Pricing adjustments may be necessary to remain competitive in the market.

Ultimately, setting the right listing price requires a combination of market research, understanding your home’s unique value proposition, and strategic pricing decisions. By carefully considering these factors and seeking professional guidance, you can determine a competitive listing price that attracts potential buyers and leads to a successful sale.

You don’t have to use an estate agent to sell your property in Spain, and listing it on an internet property site yourself could save you some hefty commission fees.

However, an estate agent could be a smart investment. Not only do agents have the local knowledge and expertise to sell your property at a good price, but they can take care of time-consuming tasks like showing buyers around the property.

To choose an estate agent, it’s a good idea to look for English-speaking agents with experience of working with UK sellers and expats. A personal recommendation from someone you know is ideal.

Otherwise, you should look for a licensed, accredited agent who is registered with a professional body such as the Official School of Estate Agents (Colegio Oficial de Agentes de la Propiedad Inmobiliaria or API)³. Other trustworthy associations include AIM, MLS and ACI.

Now it’s time to put your property on the market and advertise it to potential buyers. Some preparatory work to spruce up the property, along with taking great photos, is essential. Next, your estate agent will play a central role in advertising the property.

It’s not mandatory, but it’s a very good idea to appoint a solicitor to give you advice and oversee the legal and administrative aspects of the sale.

Here’s what you (or your solicitor) will need to have ready to make sure the sale proceeds smoothly⁵:

The property’s title deeds
Copies of utility bills
Receipts for local municipal tax (IBI) paid for the property
Your residency card (if applicable)
An inventory of furniture and other fixtures which will be included in the sale
Details of any relevant community statutes.

Once the buyer’s solicitor has completed all the necessary due diligence checks, it’s time to sign the deposit contract. This preliminary contract will be prepared by the buyer’s solicitor, and both parties will sign. A date is specified for the completion of the purchase.

At the same time the preliminary contract is signed, the deposit will be paid by the buyer. Just like in other parts of the world, the deposit is used as a firm sign of commitment to the transaction. We’ll cover how much a deposit typically is in Spain, and what happens to it if either buyer or seller change their mind, in just a moment.

To finalise the sale, a meeting will be held between the buyer, seller and their respective legal representatives. The notary will also be present. This is where the contract of sale (escritura de compravento)

The notary then informs the Land Registry of the sale and sends over copies of the title deeds. The final balance is transferred to you, and the buyer gets the keys to the property.

The typical deposit in Spain is 10%, just like in many other countries including the UK. But what happens to the deposit if either party changes their mind?

If you (the seller) pull out of the deal, you may have to pay the buyer twice the amount of deposit they paid. This is seen as a form of compensation.
If the buyer backs out of the purchase, they will lose their deposit.