When we list a property on the real estate market, we usually think only of the profit derived from the operation. However, we must consider another factor: the expenses of selling a house. These costs can range from 5% to 15% of the value of the sale.
Complete list of costs of selling a house
We'll have to face expenses before listing the property and until after the transaction. In Spain, the costs can vary significantly from one autonomous community to another.
Expenses before the sale of the house
Not all of them are mandatory; however, they are recommended:
• Energy certificate: its price depends on the dimensions of the property, although it starts at around 60 euros. It is mandatory and is valid for between 5 and 10 years.
• Simple note: specify who owns the property and whether it has encumbrances. It is not mandatory.
• Certificate of habitability: it is mandatory only in some autonomous communities. Its price depends on the characteristics of the home and the community.
• Other non-mandatory expenses: renovations, home staging, appraisal, photographic report, etc.
Expenses during the sales process
There are other expenses when selling a home before the sale materializes:
- Cancellation of the mortgage: it entails notary and registry fees that depend on each home. If the process is entrusted to an agency, the cost of their services will have to be added.
- Deposit contract: this is not compulsory, although it is advisable because it is a contract that protects both seller and buyer.
- Notary fees: in principle, these should be paid by the buyer, although it can be agreed to split them.
- Real estate commission: only if the sale is entrusted to professionals. It is between 3% and 7% in most cases.
Expenses after the sale of the home
The last section of expenses when selling a house is the most relevant on an economic level:
• Personal income tax: you must pay tax on the capital gain, that is, the difference between the purchase and the sale price. People over 65 do not pay taxes, not even if the money obtained from the sale is reinvested in another home that is a habitual residence.
• Municipal capital gains: this tax taxes the increase in the value of the land between the time of purchase and the time of sale.
• IBI: the seller must be up to date with payments and face the receipt corresponding to the current year.
How to save on expenses when selling a house
Despite everything mentioned, there are some ways to slightly reduce the cost of selling a property:
• Leave in the hands of the buyer those expenses that are not compulsory for the seller, such as the appraisal or the simple note.
• Negotiate between both parties expenses that can be divided, such as the cost of the deposit contract or the payment of the IBI bill.
• Remember that there are some deductible expenses: real estate commission, municipal capital gains or mortgage cancellation expenses.
• Compare agency fees or choose to sell yourself.
If you want to sell a house, Spainhouses.net will help you with it. At SpainHouses.net, you canlist your home for free and reach an international audience. However, if you prefer, you can contact the best professionals in your area.