Blake Bronstad (Stocksnap.io)
Selling your property in Mallorca doesn’t need to be a drawn out process, especially if you know how to do it right. There’s plenty of demand for real estate on the Balearic island. Mallorcan properties are typically on the market between 3 and 12 months, which is below the Spanish average. Despite the relative ease of selling property in Mallorca, there are several things you can do to optimise the process, and ensure you get the best return on your investment. Let’s take a step-by-step look at how to do this.
STEP 1 – Collecting the paperwork
Getting your paperwork ready is an obvious but important first step to selling your Mallorcan property.
If you are a non-resident home owner who purchased your property more than 10 years ago, it is likely that you don’t have an NIE number (”Número de Identidad Extranjero”), which is the tax identification number for foreigners in Spain. Without the NIE number, you will not be able to sell your house. However, you can easily apply for this number at the Departamento de Extranjeros, and it usually takes between 3 and 6 weeks to arrive after you have applied.
Once you have the NIE sorted out, you will need several more pieces of important documentation: the Escritura de Compraventa (title deed), relevant building permission for any extensions or modifications to the property that you may have had carried, proof of your property taxation, your mortgage documentation if applicable, proof of your community charge payments, and relevant utility bills.
As soon as you have the paperwork all sorted, it is time to tackle the core decision of the home selling process.
STEP 2 – Choosing your estate agent
Choosing the right estate agent is by far the most important decision you will take in the entire property selling process. Most people take this decision far too quickly and lightly, spending more time, for example, on deciding which car to buy or where to go on their next holiday. However, choosing the right estate agent will be one of the single biggest financial decisions you will take, and can make many thousands of euros difference.
The right estate agent will be able to guide you throughout the selling process, present your property to the right audience, and will have the right negotiating skills at the deal closing stage. Ultimately, the real estate world is a results-oriented business, and the best estate agent will deliver the best possible offer for your property.
We recommend that you list your property with only a few selected estate agents, rather than with many agencies. To attract the international buyer clientele in Mallorca, we advice working with agencies specialised in certain nationalities. Listing with fewer agencies will ensure that your agents are fully committed to selling the house at the highest price possible, rather than as quickly as possible in order to beat all other agencies to the commission. Listing with fewer agents, however, makes the agency selection process all the more important, which is where we come in.
STEP 2b – Think smart with Casafari!
Not all estate agents offer the same quality of service, and not all agents have the same property-type and region-based expertise. At Casafari, we analyse which estate agents sell better and where; we review the market based on price, location and property type. With this information, we can help you make an informed decision about who to sell your property with.
We have also created a comprehensive neighbourhood guide to the Balearic Islands, which can give you a better picture of each region and village in the Balearics, and help you to better position your house on the market. We compare thousands of properties and keep our records up to date, allowing for an accurate market overview with price distribution.
You wouldn’t buy your house without careful thought, research, and evaluation, so why sell it any differently?
STEP 3 – Placing your property on the market
A good estate agent will be able to advise you on where to advertise your property, and how to market it. Depending on their services, they may be able to provide you with an independent valuation of your property.
Pricing your home correctly is obviously a key consideration. Ideally, you would like to attract many potential buyers, as the competition created by the various interested parties will turn the dynamic into ”outpricing” rather than ”lowest acceptable price”. If you price too high, you will deter buyers in the price bracket your house is worth. Price too low, however, and the final price will be unsatisfactory.
In order to price right, market knowledge is crucially important. Casafari’s aggregate property listings are based on the comprehensive gathering of relevant information from hundreds of different agencies, which can include differing information on the same property. With this information, we can draw up competitive market analysis, which can help home sellers and estate agents to fully understand the market and deliver the best possible property price.
STEP 4 – Details, details, details
When you have decided on the best marketing channels for your property, it’s time to present the property in the best possible light. It may not be cost-effective to take out a major renovation of your house before selling it if the changes are radical in character and may not be generally appreciated. However, undertaking small repairs – fixing dripping taps, broken doorknobs, stuck windows, and cracked tiles – can be a great way of quickly and efficiently increasing chances of a premium price sale. Many people claim that they have the foresight to see past minor imperfections, but the reality can be very different!
Similarly, asking a professional photographer to take pictures of your property is a worthwhile investment. He or she can advise on lighting and decoration, being able to see the property from the impartiality of someone who doesn’t live there.
Research suggests that it takes home buyers an average of 25 minutes of viewing time before making up their minds to buy – and you never get a second chance at a first impression!
STEP 5 – Deal closing
A good estate agent will have a lot of experience and skill in the final stage of selling your property, and closing the deal with the buyer. From showing the buyers around the property and presenting the property in the best possible light, to offering convincing reasoning for purchase, a good estate agent will make the final stage of the process run smoothly and efficiently. After all, they have a vested interest in the sale going through!
Lastly, once the deal has gone through, if you are not an official tax-paying resident of Mallorca, you will be liable to pay 3% of the selling price in tax. However, your estate agent should be able to provide you with the relevant advice on how to file your Spanish tax return form, ensuring that this money is quickly returned to you.
Once the deal has been closed and the tax return form dealt with, it’ll be time to kick back and enjoy the return on your investment!
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