Total Seller's Guide: How to Sell Your Property
Selling a property is not a simple process. And if we are talking about a property where you have built your life and leave many memories in it, the process is even more demanding because it includes an emotional component that cannot be ignored. Precisely because of this aspect, we are sometimes unrealistic about selling our property and do not know how and where to start. Regent is here to help you design the best plan and make it easier to navigate the real estate market. Below are guidelines for a simpler and more successful property sale.
Prepare Your Property for Sale
Before you put it on the market, your property should be in the best possible condition. What does that mean? Be aware that what is beautiful to you or reflects your specific style is not necessarily what the market is looking for and wants. And yes, of course "every product has a buyer", but as much as possible, adapt the apartment to market needs and trends. Make necessary repairs, clean the apartment, repaint the walls if necessary, and make the space fresh and accessible, suitable for potential renovation according to the wishes of the future owner.
Hire a Professional Photographer
A good photo will bring more potential buyers to the tour than will be the case if you take the camera on your phone. Namely, a good photographer not only knows how to take a quality photo, he is skilled at finding the best angle, "capturing" the most grateful sunlight, even doing "mini staging" so that your property is presented in the best possible light.
Prepare an Excerpt from the Land Registry
Prepare an excerpt from the land registry department of the municipal court in the area where the property is located, documents showing that the building was legally built, and an energy certificate.
The excerpt consists of three parts:
- posjedovnice or the list of ownership (list A) in which the real estate is registered, that is, its main characteristics - the number of the land registry plot, area, address, method of use, construction, etc.
- vlastovnice or the ownership list (list B) in which the ownership is registered, that is, data on the owner of the real estate, all changes related to ownership, and personal restrictions to which the owner is personally subject in relation to the management or disposal of the land registry body, for example: minority, guardianship, extension of parental rights, opening of bankruptcy
- teretovnice or the burden list (list C) which shows whether the real estate is burdened with the rights of third parties, for example: mortgage, right of repurchase, pre-emption, lease or lease, redemption, registration of execution, prohibition of burden and alienation, etc.
As the owner of the property, you are obliged to obtain an energy certificate and make it available to potential buyers. Our experts will be happy to guide you through all these steps and answer any potential questions you may encounter along the way.
Determine the Realistic Price of Your Property
The correct property price is crucial for a successful sale. It is difficult to be objective when it comes to a space we love, and that is why it is important to research the local market and compare your property with similar properties that have recently been sold in that area. This will give you a good idea of what your property is worth and help you set a competitive price. The best insight into the price will also be given to you by hiring official appraisers, in which Regent can also help you.
Effectively Place the Property on the Market
Putting the property on the market is the first serious step that will bring potential buyers to your door. There are a number of ways to advertise a property, including advertising on various websites, social networks and web classifieds, and even advertising in print. It is important to use different methods to reach as many potential buyers as possible. Choosing a good real estate agency makes this simple and more productive, so we advise you to contact our customers who will know where, how and when to present your property.
Be Flexible with Viewing Offers
The period of selling a property is not simple and easy and you must be prepared for the fact that potential buyers will want to come to tour the property at different times of the day, even on weekends. If you want to sell the property as quickly as possible, you will have to give them that opportunity. Keep this in mind and adjust your free time to the situation, and a real estate agent can greatly help you with this.
Readiness for Potential Legal Difficulties
It is important to understand the entire procedure, paperwork, bureaucracy and all potential difficulties and problems that may arise along the way. In order to avoid them and if they appear smoothly and quickly solved, we recommend cooperation with one of our lawyers or real estate agents. This engagement will save you unnecessary stress, complications, and ultimately - it will shorten the whole process.
Preliminary Contract and Purchase Agreement
In the process of buying and selling, it is common to sign a preliminary contract in which the property is defined by stating the land registry data on the property (cadastral municipality, number of the plot and number of the land registry entry in which the property is registered) and the description of the property (for an apartment or house, this is the address, floor, number of the apartment or house, description of the rooms of which it consists and the total area), the agreed price, the date of conclusion of the final contract and the payment of the deposit.
The deposit is agreed as a waiver. What does that mean? If the buyer withdraws from the purchase in the middle of the process, you as the seller retain the deposit. In case of your withdrawal, you must pay the buyer twice the amount of the deposit. The usual amount is ten percent of the value of the property.
The purchase agreement follows the preliminary contract. This document, along with everything contained in the preliminary contract, most often contains the date of handing over the property to the buyer and the seller's guarantee that there are no rights of third parties on the property. The provisions on the purchase agreement are contained in Articles 376 to 473 of the Obligations Act.
Tabular Document and Registration of Ownership
After the buyer has paid you the entire amount agreed in the contract, you will certify a tabular document with a notary public, which allows the buyer to register the right of ownership of the property. You are then obliged to hand over the energy certificate or a photocopy of it to the buyer of the property. Regent's experts can help you with their advice, recommendations and knowledge to complete this process as quickly and easily as possible, and find a more detailed text in which we have processed the process of buying and selling HERE.
Tax Liabilities
Although the real estate transfer tax is reported and paid by the buyer, you as the seller may become liable for income tax from property based on the disposal of real estate if you have sold, donated, exchanged or otherwise transferred the acquired or donated real estate to another person within two years of its acquisition. You are exempt from paying this tax if:
- the property was used for housing by you and the supported members of your immediate family
- alienation is carried out between spouses and relatives in the first line and other members of the immediate family
- alienation is carried out between divorced spouses,
- if alienation is directly related to divorce
- alienation in direct connection with inheritance of real estate real estate alienated after three years from the date of acquisition.
If you are not exempt from paying tax, you are obliged to submit a report of income from property based on the disposal of real estate to the competent branch of the Tax Administration according to your residence within eight days of the disposal of the real estate.
The tax rate is 25 percent, and it is calculated on the base which is the difference between the income from the sale of real estate (determined according to the market value) and the acquisition value of the real estate increased by the growth of producer prices of industrial products.
Read more about taxes HERE, and you can also contact Regent's experts who will answer all your questions and doubts.
