Receiving and Negotiating an Offer
The property has been marketed, you have had viewings, and a buyer interested in purchasing your property has made an offer. From the outset, it is important to set two figures in your mind: the lowest price you are willing to accept and the ideal price you would like to achieve.
Get as much information as you can about the buyers' situation so you know the relative strengths of your and their position: Does the buyer need to move quickly? Are they expecting a counter offer from you or is it a take-it-or-leave-it offer? Is the offer fair given the market conditions? Do they have other properties in mind if they don't buy yours? If you are paying for an agent, use them to deal with the buyers, this is your agent’s job and one of the reasons you pay the sales commission.
Make sure that all the details are included in the offer – price, target contract date, deposit, completion date and an inventory of furniture and fittings that are included in the sale. These items should be agreed upon at the outset and before lawyers are instructed to avoid unpleasant surprises further down the line.
Don't allow yourself to be pressured into making up your mind to accept an offer. You, and not your estate agent, ultimately accept or reject an offer. Whether you sell through an agent, privately or by using internet, you still make the final decision. A good agent will simply point out your options and support any conclusion that you reach.
On accepting an offer, it is customary in Spain to sign a reservation agreement, which takes the property off the market and also freezes the purchase price. The reservation fee is usually between 3,000 € and 12,000 € and with most reservation agreements the reservation fee is fully refundable if the buyer is unable to get financing or if the paperwork for the property is not in order.
A property search is carried out by the buyer’s lawyer and ensures that the seller has the right to sell the property, free of any debts, charges, rights and will identify any other problems that may affect the property. Once the lawyer has determined that all the paperwork for the property is in order, you can proceed to the Exchange of a Private Purchase Contract.
Completing your property sale
A Private Purchase Contract is drafted between the seller and the buyer until the public deed of purchase is ready. This document includes all the terms and conditions for the sale and sets the completion date for the property transfer. Once you have exchanged contracts you and the buyer are committed to the sale. At this time, the buyer also pays the deposit to the seller, usually 10% of the sales price. The typical agreement stipulates that if the buyer backs out of the contract, they lose the deposit; if the seller backs out, they have to pay double. Of course, the buyer and seller may choose another type of agreement if they prefer.
All property transfers in Spain must be certified by a notary. The signing of the Title Deeds of the purchase and the transfer of the full selling price to the seller formally indicates that the sale is completed. You will hand over the keys to your property at this point, so don’t forget you will need to contact your mortgage lender as the loan is ending, notify utilities and arrange final readings, arrange for mail redirection and book a removal service!
Determining the value of your property
Preparing your property for viewings
Receiving and negotiating an offer