subject: Why Sell My Spanish Property On Fsbo Basis [print this page] The most compelling reason for selling your property by FSBO (For Sale by Owner) is that it enables you to advertise your property in Spain at a far more competitive price that will attract more potential buyers. Because the costs of selling by FSBO (For Sale by Owner) are much lower, you can reduce your selling / asking price to a level that will give you a substantial advantage over other Spanish properties on the market today that are marketed through the conventional and more expensive route of an estate agent. Imagine you are selling your property on an urbanisation that is identical to your neighbour who is selling through an estate agent; your chosen route of FSBO will afford you the immediate advantage of marketing your property without the agent's fee, typically 5% of the asking price, making your property more competitive and more attractive to potential buyers.
The "new way" to find buyers
In the past, most buyers would find their new dream property in Spain through an estate agent's window. The main reason for this was that there were few other available options. Some buyers may have found a property through newspaper and magazine advertising or by driving around their chosen location. As the potential buyer of your property here in Spain is more likely to come from outside of Spain, this option is less likely to occur.
In today's world, property buyers seeking a property in Spain start their search on the internet. Last year a staggering 87% of property buyers used the internet to find their next home. In order to sell, your property needs to be seen. Until now, property owners had little or no choice, but to use an estate agent to achieve internet exposure. Cost, know how and achieving page 1 ranking on Google and other top search engine sites being the most limiting factors.
How to sell your property privately
Selling your property directly to a buyer is actually less daunting and much easier than most owners think, although it does require you to do some of the legwork yourself. The fact that you can offer your property at the keenest price means you are more likely to attract more enquiries and sell much quicker. There are many hints and tips on how to make the most of what your property has to offer and how to use them to attract more enquiries.
What attracts a buyer to a property?
In order to help you market your property in the best possible way, you need to remind yourself of how a buyer thinks.
As they browse a property website, this is the thought process they go through before they decide to make an enquiry:
Main photograph - I like the look of this property
Price - I like the price and it is within my budget
Bedrooms and bathrooms - the property has what I am looking for
The summary description - it has many key features that interest me
Additional photographs - I like these too
Location - the property is in an area that interests me
It is usually at this point that they decide to make an enquiry and ask for more information. Mindful of how a buyer gets to the stage of making an enquiry, what next?
Getting started
The first thing to do is get a pen and a notepad. What you are going to do is make a list of all the positive and not so positive aspects of your entire property, inside and out.
There are 3 key reasons to do this:
The highlights and features will be used to compile your property listing
You will be able to use your list of highlights as a 'prompt' when your are showing a prospective buyer around your home
It will identify any negative aspects that may put buyers off and allow you to take remedial action
For most property owners, taking time to review their home 'in the eyes of a potential buyer' makes good sense. However, many home owners don't do it. For those that do, it can and usually does, pay dividends when it comes to showing their home to a prospective buyer.
How to complete my property 'survey'
The first thing to do is go outside...right outside the entrance of your property and look at what you see. Write down what is appealing and what is not. At this stage, it should be said, that any negatives aspects identified may not be able to be corrected due to time, cost etc. However, you will be aware of them. The next stage is to do the same thing between the entrance to your property and the main entrance to the house. Then, systematically work your way through each room as you would take a potential buyer around. Finally, complete the outside of the property. As you walk around, write down all the things that first attracted you. Then, as you look at each aspect or room, consider what else you could say to a potential buyer that would make them feel at home. The size of your list does not matter, as long as you make sure that you have included everything. Tip: Invite a friend to help you, they may see things that you might overlook
Location and Amenities
Buyers are looking for 2 things in relation to 'location'. Firstly they want to know how close the nearest international airport is and secondly, where are the nearest shops, restaurants, medical facilities, schools etc.
Compile a list of everything you can think of that could be of benefit to a potential buyer. Some examples might include:
Airport
Coast
Shops
Hospital / medical centre
Kennels / cattery
Big city
Local attractions
Always describe the distance in terms of time, that is, how long it takes to drive or walk.
Describing your property
A good description is vital to make your property really stand out from the competition. Sing your property's praises; after all, no-one knows its pleasures more than you.
List all the things that first attracted you to the property, chances are what attracted you will also attract a potential buyer. Then add anything that you have done to enhance your property.
Take each item and write beside it why it would appeal to a buyer. Where possible, it is always best to highlight the exterior features first. Why? Highlighting these features allows you to sell the lifestyle dream of living in a hot, sunny country such as Spain.
Exterior features examples
Swimming pool - the swimming pool benefits from solar heating and a heat retaining cover. Typically you will be able to swim from May until October.
Large covered terrace the property has a large covered terrace. Not only is it great for al fresco dining, but it helps keep the house cooler on those hot summer days.
Irrigation system efficient, saves water, saves money and keeps the garden looking beautiful.
Outside kitchen and barbeque area - cooking outdoors all year round is great fun and fabulous for entertaining friends.
Of course, the interior of your property will have many features too. Interior features examples
Kitchen
Style - traditional or modern
Type of units - wood
Work surface - marble, granite etc
Concealed work surface lighting
Sink - size and material
Flooring original, marble, stone, tiled
Appliances - integrated, makes and models, electric, gas
Separate utility room
Lounge
Feature fireplace
Log burning stove
Beamed ceiling
Leading to patio
Satellite TV
Bathroom
Bath with shower
Bidet
Separate shower
Vanity mirror with lighting above
Fully tiled
Bedrooms
Fitted wardrobes
En-suite bathroom
Leading to a balcony
Fantastic views
TV and telephone sockets
Good photographs, why they are so important
You have less than 1 second to catch the attention of buyers who are browsing the internet for a property. If your main photo is attractive, buyers are more likely to seek more information.
If you are taking your own photographs:
Always take your pictures on a clear, sunny day around midday
The quality of your main photo is critical, take a few from different locations and distances to find out which is best
Always take your photos with the flash
If at all possible, try to capture some foliage in the foreground; you will be amazed at the difference a little greenery can make to the composition.
Clear all clutter away before you take your photos, especially, kitchen and bathrooms
Never, ever have people or pets in the foreground, these make for unprofessional photos and detract from the subject.
Always take your photos in landscape, portrait style does not look as good on a website
Establish your property selling price
Property prices in Spain have been falling since 2007 and the fact remains that no-one really knows if the market has bottomed out as yet. In the current uncertain Spanish property market the best way to value your property is to do a little research first. You will probably know similar properties to your own in your area, what the asking prices are and how long they have been on the market. If possible, try searching the internet to find out what prices are on offer for other properties similar to yours.
The next thing to do is decide on how quickly you want to sell. If you need to sell fast, then you will have to set a very attractive price. If you are not in an immediate rush, it is still best to set a price that is lower than any similar properties.
Regardless of your time scales, the best advice is to 'test and review'. Your benchmark for knowing if your price is right is the amount of enquires you receive. If you do not get many within the first month of advertising, you should consider reducing the price.
The initial enquiry creating the 'hook'
It is very common for a buyer to simply ask you to 'send more information' when they make their initial enquiry.
What do I tell them? I have included all the information in the property description.
Your initial response should always include a message thanking them for making the enquiry. The next thing to do is create the 'hook' this enables you to ask the enquirer if they have any specific questions that they would like to ask and invites a response from them and encourages further dialogue.
Here are some examples that you could use:
Would you like me to send some additional photos?
Would you like to know more about the location and amenities?
Would you like to know more about running costs?
Always tell the enquirer that you can call them to discuss and answer any questions that they have.
Preparing your property for viewings
De-clutter. OK, this is the aspect of selling that most home owners hate, however, it has to be done. The first thing to do is decide what has to go and you have to be brutal with yourself here.
A good way to think about it is to think back to when you viewed a show home on a new development. Most people like show houses but don't realise why.
The reason is simple. It's new, has neutral colours, furniture that makes rooms look bigger and no personal effects of any kind. So, what you need to do is go through your property room by room and try to create a 'show home' look and feel.
3 simple rules; sell it, bin it or tidy it away.
Decoration and repairs
You probably don't want to spend any money on the property because you are selling. Mending things that a buyer will notice is important. If your paintwork is looking tired, it does not need to cost much to freshen it up. Tip: If you do decide to paint, go for white or neutral colours
Viewing day
This starts the day before the actual viewing itself. You've de-cluttered, mended and painted but now is the time to do a final check.
Start in the kitchen and clear as much as possible off the worktops including cloths and washing up stuff from around the sink.
Next, do the same in the bathroom(s).
Bedrooms - no clothes lying around and kids toys put away.
Lounge - remove all papers, magazines etc. from under the coffee table.
Many people don't like this next aspect but it works...put all your personal photos in a drawer or cupboard.
Buyers want to imagine a property as their home; too may personal effects on show make it harder for them to do this.
Make sure the house is clean, not forgetting the windows.
Last but by no means least, check the garden and pool area.
Make arrangements (if possible) for a neighbour to look after the kids and pets during the viewing.
It avoids any unnecessary distractions and means that you can concentrate on telling the buyer about all the great features in your property.
Never be tempted to tell the buyer that you have done all this hard work for them. Let them feel that this is how you live every day after all this is the lifestyle dream you are selling to them.
One final point, make sure you print a copy of your property details to give to the buyer when they arrive.
They're here!
When your prospective buyers arrive, try to appear relaxed when you greet them.
Always introduce yourself and then say "let me show you around". At the same time explain that they will be free to take as much time on their own to familiarise themselves.
Start inside property and then move on to the outside.
Always let the potential buyer enter each room first. Follow them in and point out the features of each room.
Once the viewer(s) have finished looking around, say that you would like to tell them about the location and what it has to offer and to answer any questions that they might have.
During this conversation, you can take some time to find out about them.
Some examples might be
How long have you been looking?
Have you looked at many properties?
Is this the area that you're specifically looking for?
How soon are you looking to buy?
Do you have a property to sell first?
Do you need a mortgage?
At the same time, the buyer will probably ask you some questions too.
The most common is "Why are you selling?" The best way to answer this is to say, "we really like our house and have enjoyed living in this part of Spain however, we are looking for a change"
If you are asked if you have had much interest in the property and you have, tell them. If not, say you have. This may be the biggest white lie of all time but everyone does it.
As they leave, thank them for allowing you to show them around and say that if they have any further questions please let you know.
Receiving offers
Unless you have a unique property in a well sought after location, it is probable that any offers you receive will be below your asking price.
The key question here is 'how much below?'
It is quite natural to feel a little insulted if the offer is way below your expectations, however, the key thing to remember here is that selling and buying property is a 'business' transaction and you need to take all emotions out of it. Whatever happens and however insulted you may feel, always remain polite.
A simple 'thank you for your offer, however it is too low' could pay dividends later if the buyer is really interested in your property.
So, an offer does come in and it is way below what you are looking for. The first thing to do is keep calm, all may not be lost. What the buyer is trying to find out is 'what is your bottom line'.
The next thing to do is thank them for their offer and say that you will give it due consideration. Then take time to reflect. At this point you need to decide if you are going to hold out for your asking price or put in a counter offer. Ideally, you should respond within the same day.
If you decide to make a counter offer; reduce your price a little and wait for the response. If you receive an offer higher than the original you'll know they are interested.
From here on it is a bit of cat and mouse until, hopefully, you can get to a price that you are happy to accept.
Completing the sale
Once you have verbally agreed on the price and any conditions of the sale, the next thing to do is contact your solicitor.
Before doing this you'll need some information from the buyer(s).
Full name(s)
Contact telephone number
Email address
Name and contact details of their solicitor
Your solicitor will then confirm, in writing to the buyer's solicitor, the following;
The sale price
What's included in the sale
Request for a holding deposit (normally 3.000)
The completion date
Draft contract of sale
All documentation normally requested by the buyer's solicitor
Then comes the usual back and forth between the solicitors until they're both satisfied that all is in order.
Once this is done, the final thing to agree is the date that everyone will attend the Notary to complete the sale.
