Do you want to sell your house? This is what you have to know
If you want to sell your home there are a number of issues that must be taken into account.
Author: MARTA GRACIA Source: www.elperiodico.com
Buying a home is not an easy task, but neither is selling it. It is not enough to hang up the “sell” sign or put the ad on a real estate portal and wait for them to call. A series of previous knowledge is needed, such as the fact that price negotiation is the process that consumes the most time or that all the necessary information must be collected before starting the process.
According to data from C21 Spain, the average time to sell a second-hand house has increased considerably. If in 2018 the transactions reached 60 days, in 2019 it takes about 100 days on average to sell a property. So everyone who plans to sell their property should take it easy and take that time to prepare it and look with magnifying glass all the expenses and paperwork that must be carried out previously.
SOME OF THE CHALLENGES TO BE FACED DURING ALL PURCHASE AND SALE PROCESS:
Set the correct market price. Solvia points out that the most common is to track the prices of similar surface homes sold in the area. However, each property "is a world", and the amount will also be determined by the distribution, facilities, qualities, lighting or reforms made of the property, as well as by the type of building and preservation of the building where it is located. “We will have to know how to correlate these values and not set exorbitant prices that scare off potential stakeholders.
Expert advice. No one knows the local reality and the needs of potential buyers better than an experienced real estate consultant. Therefore, from C21 they ensure that having the help of a real estate agency is always an added value for any seller since they will be professionally advised on how to get the best out of the home they want to sell and what steps should be taken to Ensure this process in the correct, agile and most beneficial way for the property owner. Solvia's experts agree and point out that although the sale of a home can be done in a particular way, relying on the advice of professionals facilitates the process, saves time and ensures “the attainment of a sales transaction that satisfies all concerned parties". In this case, Solvia notes that it makes available a team of personal advisors.
Identify potential buyers. To avoid wasting time, it is important to detect which buyers really want and can acquire the property. Therefore, before continuing the relationship with a potential interested party, Solvia recommends knowing if you are in the first stage of searching for housing, if you have sufficient economic capacity for the acquisition, if you have already consulted with a banking entity the possible grant of a mortgage, if you intend to pay in cash, if you need to buy in a short period of time, if you have savings ...
Have a commercial vision to capture the buyer. A home is still a product for sale that requires a series of specific value proposals that capture the interest of a buyer. "The challenge will not only be to detect them, but also to work them (adapting the house) and know how to transmit them, both at the time of announcing it (description, photographs, videos ...), as well as in the visits", they point out from Solvia. Some attractions that can be exploited are: renovations and renovations carried out, energy efficiency, special provisions, lighting, location and nearby services, good relations with the neighborhood community, elevator availability ...
Know how to answer the questions of buying and selling of those interested. It is very common for a person who visits what he considers his future home to ask many questions related not only to the state and situation of the property, but also to the buying and selling process (taxes, legal procedures, mortgage issues, etc.). Although it is not necessary for the latter to answer the seller, they are very useful to establish the confidence of the interested party and increase the possibilities of sale.
The negotiation with the buyer. Once you have managed to capture the attention of a potential buyer and know your real motivation for purchase, it will be necessary to know your expectations for the negotiation. Providing solutions that facilitate the decision and having professional and personalized advice can make the difference between a deal and a well done deal.
Collect all the necessary documentation for the sale. When formalizing the contract of sale, the seller must provide, apart from his ID, the title deed and the simple note, the certificate of outstanding debt, the housing habitability cell, the community expenses, the receipts of supplies of the property, the Energy Efficiency Certificate, the urban qualification and the Certification of Technical Inspection of the Building (ITE). All of them are necessary to make the contract with the future buyer. Subsequently, the signature of the public deed of the property will be made before a notary, a document that, once it has been provided in the Property Registry, will certify the change of ownership.
Face transaction costs. Selling a home is not free. The seller must meet the costs of state (IRPF) and municipal capital gain (IBI), mortgage cancellation and processing of the mortgage cancellation process (if any), energy certificate, as well as the certificate of being up to date of community payments.
Fine tunning. Any detail counts and that is why it is essential for the owner to prepare the property in order for any prospective buyer to “enter his eyes” on his first prospecting visit. In this way, Century21 Spain advises to take care of cleanliness, order and even make a previous reform if necessary, they will always be points in favor. Likewise, every owner must present the deed of sale of the house and the data of the property registry. You must also keep the receipts of the Property Tax (IBI), the community fees and provide the status of the charges if you had them. In addition, it is advisable that the seller has prepared, in case it could be requested by the potential buyer, a plan of the house and its location, as well as a general and specific description of the property and the building itself.
What is better for me to buy a new house or renovate a second-hand one?
The purchase of second-hand homes is majority month by month. In the month of March, 81% of the sales were used housing
Source: www.elperiodico.com Autora: MARTA GRACIA
The decision to buy a home is one of the most important to take. Therefore, it is necessary to make a study before deciding on a property or another. You have to know in which area you want to buy the house, how many meters you need or if you want new or used housing. Currently, most of the homes purchased are used housing. Many of them must be reformed, so it is convenient to know which is better.
According to the latest data from the National Statistics Institute (INE), in March 42,649 sales transactions were carried out. 81.1% of these transmissions were made in used housing, that is, 34,604 second-hand homes. On the other hand, in the month of March the sale of 8,045 new homes was carried out.
Currently, "the issue of the rehabilitation of real estate is very fashionable," says María Alcázar, head of Development and new business of Casaktua, and explains that there are companies and television programs that sell that you no longer have to buy the house of your dreams, but you can make it yourself. "It is a blank paper that you can buy, it has become very fashionable for this," says the head of Casaktua.
Ferran Font, director of Estudios.com floors, explains that “a new home will always be more attractive at first, given that the buyer is reluctant to face tedious works. However, in certain locations, it is more important to bet on rehabilitating a second-hand house. Not only will the owner be completely at ease after the reform and it will have been revalued in the face of a future sale, but it is very likely that the farm is located in a consolidated neighborhood ”
María Alcázar says that, currently, the purchase of second-hand homes is at a "very interesting" time. However, they have to assess whether the value of the property will increase after the reform. "You have to evaluate the prices in the area, since it will not be the same to reform in a central neighborhood of Madrid, than in one of the periphery of Huesca," he says.
That is why he insists that yes, first you have to see how much that reform will cost you and if you have the money for it. “If you have it, it will be more profitable, that if you don't have it and you have to ask for financing you have to count on the interests that will be charged for that money,” he explains. In this way, Alcazar points out that the red line that must be taken at the time of a used home is that it has no structure problems "because there you are not going to get in."
However, reiterate that if you get the opportunity to buy a property in a good area, but in which you could not afford a new home, "it is a good opportunity." And remember that if that property does not have major problems, "if it is only a face lift or small works that are really the ones that give value to a property such as the kitchen or bathrooms there, no doubt ahead."
María Alcázar sums up that "if you know how to take a good opportunity and don't have big problems, it is cheaper to take a second-hand home and rehabilitate it." The head of Casaktua says that you are going to make a short-term return, "much more than what you would take from a house that you would buy now."
HOW MUCH DOES IT COST TO REFORM A HOUSING ACCORDING TO THE AREA?
According to flats.com, the houses that need a reform are 62,520 euros cheaper than those of new construction: 148,800 euros on average compared to 211,320 euros. Taking into account that the average amount of a comprehensive reform is 22,704 euros, this would save 39,816 euros. They ensure that a brand new house will always be more expensive, while the price of a property with decades behind it could be negotiated based on the degree of reform that had to be carried out.
The price of the type of new construction home has risen 5.45% compared to 2018. If we compare the price reached in 2017, the increase would be 10.75%. With regard to the housing used to reform, it has experienced a rebound of 5.55% compared to last year and 7.43% compared to two years ago. In this regard, it is important to note that the budget for reforms has increased 5.2% compared to the previous year, while the price of a comprehensive reform has also risen 5.95%, which balances the possibilities.
What should I consider if I buy a used house from a company or a bank?
Aspects such as ensuring that the seller is a representative of the company or knowing what taxes it is necessary to pay
Although home sales have slowed in recent months, due to the new mortgage law and the economic slowdown, the last quarter of the year is usually a good period to buy a home. And if you buy a flat from a company it is important that you consider aspects, such as making sure that the seller is a representative of the company or knowing what taxes you have to pay.
The Law Attic Law Firm details the key aspects below:
Check that the seller is the company representative
The Law attributes the representation of the company to the administrator based on how it is determined in the bylaws. But the company can also grant powers of representation to people with the consideration of distressed.
The advice offered by the law firm is that before the signing of the private sale contract, the buyer reviews the bylaws of the company, the deed of appointment of an administrator or the proxy, to verify that the company is validly represented. A note may also be requested from the commercial register to verify that the administrator continues to hold his position.
Check that there is agreement of the partners to sell the flat
Para vender una vivienda considerada activo esencial es necesario que los socios lo hayan acordado en junta general. Tiene tal consideración la vivienda cuyo importe supere el 25% del valor de los activos que figuren en el último balance aprobado por la mercantil, una exigencia que se introdujo en la Ley de Sociedades de Capital, tras la reforma del año 2014. Además, al margen del valor cuantitativo y aunque el valor no supere el 25% del total de bienes de la sociedad, el inmueble puede tener la consideración de activo esencial para poder venderse.
Legal Attic recommends that before signing the information is requested from the company or that the seller is requested a certificate stating that the property to be transmitted is not an essential asset.
Delivery to the company
The signing of a private contract of sale with delivery of money as a penitentiary deposit is a frequent formula, although it does not guarantee the buyer that the operation is carried out. The selling company may sell the flat to another person, but, in return, it must return the purchase delivered to the buyer in duplicate. In the event that the company does not deliver them in duplicate and declared insolvent, the buyer could lose the floor and money, having to claim the return of the amounts delivered to an insolvent company.
Legal Attic points out that it is possible to avoid this risk, by formalizing directly the sale before a notary. If such an option is not possible, the buyer can find out in the commercial register if the company that sells is solvent or has other assets. It would also be possible to sign the private contract by depositing a check for the amount of the deposit, at the notary where the deed is planned.
The act of real ownership of the selling company
This means that those partners with more than 25% participation in the selling company must identify themselves to formalize the sale. Companies created after the year 2010 in which the Law on the Prevention of Money Laundering came into force, already incorporate in their articles of incorporation the act of real ownership. If the selling company is prior, it will be necessary to have the minutes to be formalized before a notary. Said act of real ownership is easily obtained in notary.
Taxes to pay
First, the tax to be paid by the buyer for the purchase of the house is VAT of 10% in case the house is new (and 4% if the house is officially protected by special regime or public promotion) . And if what you buy is a business premises or a new office, the VAT rate is 21%.
But if it is second-hand, the transfer will be exempt from VAT and then you must pay the Property Transfer Tax (TPO).
Of course, if the one who buys is an entrepreneur or professional in the exercise of his activity, and is entitled to the total or partial deduction of VAT, it is possible to waive the exemption from this tax. This will ensure that the purchase is taxed by VAT instead of TPO, and in this way the tax paid can then be deducted, as Legal Attic remembers. In the event that the buyer has to pay VAT, he will be in charge of entering it into the Treasury, that is, it will not be the seller (for what is known as the “investment of the taxpayer”, referred to in article 84.1.2.e of Law 37/1992).
If the buyer had the right to deduct the VAT, in the declaration that he presents he will enter the VAT of the purchase on the one hand, and on the other hand he will deduct it, obtaining thus the neutrality of the tax, as they remember from Legal Attic.
Green mortgages: what they are, how they work in Spain and why they are called to revolutionize the market
Autor:@Ana P. Alarcos
Much has been said in recent times about green mortgages, home equity loans that have the sole purpose of rewarding the purchase of efficient homes or reforms that seek to reduce the consumption of old apartments.
At the moment, green mortgages are taking their first steps in the domestic market, as in Europe, waiting for community criteria to be defined that allow them to take off. Although they are still being sold on a residual basis, experts believe that in the coming years they will be the order of the day in the mortgage market.
To clear up doubts, we summarize who these mortgage products are aimed at, what entities are already offering them, how they differ from traditional loans and what has to happen to be generalized.
First of all, be clear about what a green mortgage is and in what cases you can hire. And the answer is that it serves to finance the acquisition of a property that has an energy rating A or B (the two highest possible steps), or the rehabilitation of an old house, provided that its energy efficiency is improved by 30% . That is what the European Commission considers a verde green housing ’.
The offers of the banks
And what kind of entities are marketing it? In the case of Spain, entities such as Triodos Bank, Banco Santander, Bankia, BBVA, Caja Rural de Navarra, Cajamar and Unión de Crédito Inmobiliarios (UCI) stand out. All of them apply somewhat lower interests than in standard mortgages. That is, they reward the customer with a discount on the interest rate and in some cases the personal contribution required by banks to approve the loan is reduced.
The Dutch Triodos Bank, for example, has already granted almost 1,700 mortgages of this type in our country (among all the European countries in which it operates it has closed almost 12,000 operations) and links the interest rate charged to the customer to the energy rating of your home Its offer includes variable or mixed type loans and in the case of variable mortgages the differential improves by more than two tenths between a house A and a G.
In economic terms, it represents a reduction of about 16 euros per month and about 4,000 euros throughout the life of the variable loan. In the case of mixed products (where the first years apply a fixed rate and then a variable one), the savings are around 20 euros per month and 5,000 euros in total terms.
Santander, on the other hand, subsidizes the interest rate for the purchase of sustainable housing, according to the certificates recognized by the market, compared to a traditional mortgage by 10 basis points (that is, 0.1%). The ‘standard’ offer of the entity chaired by Ana Botín is 0.99% Euribor in the case of a variable loan and 1.9% at a fixed rate. In addition, it has launched a loan to finance energy rehabilitations of between 3,000 and 100,000 euros, with the collaboration of the European Investment Bank (EIB).
Bankia also has a specific credit line open to finance the purchase of sustainable homes. Where appropriate, mortgages have a bonus of 25 basis points (0.25%) compared to regular loans, while Cajamar applies a reduction of 5 basis points (0.05%) in the initial interest and in the differential of its variable mortgage 'Wefferent', focused on young clientele and digital profile, and is available for home purchase, rehabilitation or construction.
BBVA, on the other hand, has a promoter loan line for the construction of high-energy-efficient homes that allows buyers to finance the house with a bonus on the mortgage differential through subrogation. In the case of UCI, the offer is based on a bonus of 10 basis points for the differential and requires a lower contribution from the client for the purchase of housing, taking into account its level of risk and demanding at least 10% of the purchase price.
However, experts believe that the moment bonuses are very scarce. “Here the banks have been uncreative, and usually all they offer is a reduction in the interest rate. They should think of other incentives, such as taking out specific mortgage products for energy rehabilitation, which will surely help people focus reforms in this regard, ”says Juan Villén, head of idealist / mortgages, who insists that“ although each time More banks offer these mortgage products, they should be more visible. Almost all new construction promotions are already A-B certified, so banks should advertise green mortgages for all these homes. ”
The process, in an incipient moment
And if they are such good loans, why haven't they settled yet? As explained by Enrique Benavides, manager of the Spanish Mortgage Association (AHE), "the practical development of these types of mortgages is still incipient in Europe because there are several aspects that qualify to be a commercially mature product."
“There are still many aspects that are being debated and that must be clarified and agreed upon, such as the suitability of current energy efficiency certificates, the homogeneous classification of buildings; incentives and / or levies to encourage intervening parties (from promoters to citizens, through financial entities), the transition to energy efficiency objectives, the appraised value of a green property against a non-green one, or the measurement of the impact of improvements in housing efficiency, ”says Benavides.
Something similar believes Javier Kindelan, spokesman for RICS, vice president of CBRE Spain and president of Valuation Advisory Services CBRE EMEA, who states that “we are in an incipient phase where the pillars of sustainable financing are being established. As a result, according to the report published by the World Resource Institute, only half of the 50 largest banks in the world currently have sustainable economic goals and offer sustainable loans. ”
On the other hand, Cátia de Almeida, responsible for the green mortgage project of the Union of Real Estate Credits (UCI), argues that “at European level, there are several proposals to define the guidelines and the standardization of green mortgages”, such as the plans for action initiated by countries such as Italy, Belgium, Germany or Denmark.
In the case of Spain, Almeida highlights that in recent years there has been a more latent concern about how housing affects climate change and how users can take actions to prevent households from continuing to produce CO2 emissions in an excessive manner ( housing is responsible for more than one third of the emissions). In spite of this, “subsidy plans or economic incentives have not yet been developed in a structured and coordinated manner so that customers can take improvement measures without being financially affected. And this is where private entities have a fundamental role in creating that link between the client and the development of sustainable housing, ”he insists.
A 'forced' impulse that comes from Europe
And if they are still in such an incipient moment, why does the market assume that they will generalize in the coming years? The answer is that they will be driven by the sustainability objectives set by the European Union in the Strategic Energy and Climate Framework, based on achieving zero carbon emissions in 2050 and that include a specific strategy for renovating the residential park (ERESEE in the case of Spain). Among the proposed measures is that buildings have almost zero energy consumption, so regulations and actions aimed at reducing emissions will have to be implemented.
In the mortgage context, an initiative called Energy Efficient Mortgages (EEM) has also been created, which aims to promote and finance investment in energy efficient buildings and in renewed energy in order to guarantee a greener and sustainable future. The initiative is backed by some of the largest private banks in the Old Continent and the market assumes that it will be a reef for green loans.
The head of idealist / mortgages recalls that "the future is efficient homes and these mortgages go hand in hand", while the manager of the AHE argues that "energy efficiency and decarbonization that has marked Europe affect all areas of life, and all economic agents must be part of the solution, including financial institutions. ”
Pedro Garrido Chamorro, General Director of Registries and Notaries, believes that "green financing should be one of our immediate concerns, both for the need to create new products and for promoting sustainability."
For Kindelan, the great catapult of mortgages will be “the commitment of our country to the climate and the environment, as well as the need to raise awareness and strengthen the competitiveness of banks in innovation and commitment to sustainable financial products, which demonstrate a greater commitment to the environment ”. And he adds that green mortgages "promote more sustainable construction and reform, reducing energy demand, which in turn reduces real estate risks by providing assets with a better and longer useful life due to their most optimal state, competitiveness and liquidity."
Finally, the head of green mortgages at UCI adds that the pull of these loans will also be linked to the evolution of the market itself. “The banks have already detected demand from their customers, and this trend begins to penetrate among the promoters, which offer more and more efficient developments, maximum level and efficient use of resources. Green mortgages have come to stay because the future will either be sustainable or it won't be. ”
In Spain, in addition, its route is very wide. According to idealist / data, most of the homes for sale and rent that are currently available in the market have a medium-low level of sustainability. Specifically, the most common energy certificate is E (the fifth worst level on a scale of seven). On the other hand, from the General Directorate of Architecture, Housing and Land under the Ministry of Development argue that more than 60% of the domestic housing stock was built when there were no efficiency regulations.
In Europe the scenario does not improve much more: the European Mortgage Federation estimates that in the EU there are more than 220 million blocks of flats built before 2001 and there are millions of homes with an energy certification below C.
And this low level of sustainability has a direct impact on energy consumption and, therefore, on the pocket of citizens. According to a study carried out by the Energy Efficient Mortgages initiative in Denmark, a housing of A rating spends six times less energy than one of G rating (the lowest in the ranking), which means an annual saving of more than 3,500 euros and confers around 64,000 euros extra market value.
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