For those who are looking to sell their property in Spain and return to the UK, Simon Pelling, managing director of Sell4Less Spain by David Lloyd, says there are a number of advantages to the Brexit situation and some disdavantages, too.
“Sellers should get moving quickly and consider the points below and get their properties sold,” he said.
What is the good news?
The euro is expected to strengthen against the pound – meaning whatever you sell your Spanish property for, when you convert that back to pounds, you will have more money to purchase a UK property.
Pelling also says that UK property, which is currently over-inflated – in part due to the stamp duty holiday keeping demand and house prices high – is expected to correct once the deadline for the holiday is reached. Once this happens, ‘your pounds will now buy you more in the UK’.
And the bad news?
Pelling says Covid will continue to make it hard for potential buyers to view properties – making it harder than ever to sell through Q1 and Q2 2020 at least.
Similarly, the reduction in the economies of all major European countries is likely to reduce the number of “able” buyers, meaning that asking prices and actual agreed prices ‘will almost certainly fall throughout 2021’.
Lastly, Pelling says that Brexit will ‘without doubt’ reduce the number of British buyers for properties in Spain. Perhaps not for the long-term, but definitely in the short-term (Q1 and Q2).
“Britons still account for the majority of foreign purchasers,” Pelling argues. “Many buyers from the UK will want to see the Brexit confusion settle down before they commit to investing in European property.”
What should a British seller in Spain do to get their property sold?
Pelling advises the following.
Get the property on the market ASAP: In a contactless world this can be hard – especially if the owner is in the UK and the property in Spain. However, David Lloyd’s online estate agent Sell4LessSpain.com allows clients to upload their property data and get their property for sale without the need for a physical visit – ‘making the process contactless and Covid- compliant!’
Make sure the property is priced as attractively as possible and marketed to the widest network of potential buyers: Purchasers may want to consider non-commission agencies (typical commission in Spain is 5% plus IVA, the Spanish version of VAT). The lack of commission could allow sellers to price more realistically and have the edge on the competition, and also allows the seller to potentially achieve more from the sale, Pelling insists.
Maximise the reach/exposure of the property: sellers should use an agent which markets property across all the major property portals such as Rightmove Overseas, Zoopla, Kyero, Idealista and many more. Buyers search on these portals for properties to buy – consequently, by having your property represented on these portals, you will increase the chances of finding a buyer.
Use quality photos, good descriptions and virtual tours: Pelling says sellers need to make sure the collateral for marketing your property is of the highest standard to make your property stand out.
Be realistic in your expectations: “Don’t be greedy,” Pelling warns. “Set a realistic price and consider all offers from buyers in a strong position!”
Sell4LessSpain.com offers a commission-free model, ‘where the only payment is for the monthly representation of your property on the portals we work with’.
The business was founded in 2015, with former tennis player and leisure impresario David Lloyd becoming an executive director in 2019. The management team have over 50 years of senior agency experience in both the UK and Spain.
You can find out more here.
This post has originally been featured in Property Investor Today.