Selling your property in Ibiza

DIRECTORY OF CONTENTS

• A trustworthy estate agent in Ibiza
• Preparing your villa for sale
• Sales contract
• Marketing your property for sale in Ibiza
• Viewings of your property in Ibiza
• Negotiation with the buyer if interested.
• Closing the sale of your property

01: USE A TRUSTED ESTATE AGENT IN IBIZA

The crucial role of a real estate agent is fully evident throughout the entire sales process. From the outset, the agent not only contributes their extensive knowledge and expertise, but also establishes valuable contacts in their professional network. With their outstanding skills, real estate agents play a key role in significantly increasing the chances of success of any sale.

Make a decision when choosing a broker:

• Choose the person you want to hire carefully. The more familiar you feel with a person, the more effortless communication will be and the more freely you can speak without hesitation. A professional but honest and open relationship with your agent will therefore contribute significantly to the safety of your selling process.
• Choosing an agency with a solid background and extensive experience in the field will undoubtedly help make the sales process efficient. By working with an experienced agent, you will maximize the productivity of the time you spend together and avoid time-consuming detours.

• It is advisable to look for agents who have specific experience in selling real estate in the same region as your home. This will ensure that you benefit from a higher success rate. The agent’s knowledge of the local real estate market and their experience in similar environments will help to ensure a smooth sales process.
• Look specifically for an agent who has sufficient market knowledge to adequately value your property. A competent agent should be able to make a realistic valuation based on various factors, including the property’s square footage, location, view, build quality and other relevant aspects. This will ensure that your property is valued appropriately and in line with the market.
• To avoid any disappointments or ambiguities, it is important to set out clear expectations for the sales process from the outset. You should also disclose key facts during this phase, such as whether the home will be sold furnished or unfurnished, whether any pending work will be completed on the home, and what items will be included in the sale inventory. Transparent communication about such details will help ensure a smooth and understanding sales experience.
• Don’t be afraid to ask your agent any number of supplemental questions as you require. They will be on your side and ready to address any issues or concerns you may have. Their availability always extends to ensure you are fully informed and feel supported.

You should ask your estate agent

• What are your sales in our locality?
• What is my property worth?
• Do you work with other agents?
• How many properties have you sold in the last year?
• Who and how are the viewings organized?

After you’ve set out your expectations clearly and asked your questions, your real estate agent will provide you with an appropriate market assessment. This will include not only a list of current property prices in your area, but also comprehensive information about the current real estate market in Ibiza. Of note is the detailed analysis of the area where the sale is to take place to give you a detailed insight.

Prepare Your Home Presentation Thoughtfully

After conducting thorough research, your main priority now is to strategically prepare your home for viewings. It is crucial to emphasize that many sales processes fail due to inadequate presentation.

The first step in preparing is to declutter the property, as this will immediately help to create a tidy and welcoming atmosphere. It is advisable to remove personal but unimportant items such as photos, jewelry and toys and store them out of sight. Similarly, decorative items that are very personal and to your taste, as well as worn furniture that could detract from the overall look of your home, should be removed from view.

Creating a list of defects is a smart move. This list carefully records minor defects that need to be fixed. This approach is extremely valuable for identifying problems such as chipped paint, leaks and heating defects. It also helps to ensure that all appliances – from the hot water supply to the electricity network – are working properly..

To ensure that your property is optimally prepared for viewings, we recommend hiring a professional cleaning company. Additionally, invest in a fresh coat of paint and floor polishing to ensure an appealing appearance. It is of utmost importance to address any issues during the preparation of your home to avoid later inconveniences.

When preparing your house for viewings, it is of the utmost importance to review the inventory of the property. This step should be completed before the viewings, as it can impact the outcome of the negotiation phase. From our experience, discrepancies in the inventory and extras can lead to a failed sale if they do not align with the original agreements. Therefore, it is essential to ensure that your inventory is up-to-date and complete when presenting your house for viewings.

Thanks to their experience with property viewings, your real estate agent has an expert opinion that they can use to give you recommendations for the optimal presentation of your home.

03. LISTING CONTRACT

What is a listing agreement is a document presented by your agent that sets out several key factors. These include the type of sales contract, the duration for which the property is offered for sale, the stated sale price, the commission terms for the agent and the payment terms upon a successful sale. This document sets out the basic terms and conditions and is crucial to the entire sales process.

Ibiza is characterized by a free and open property market, which means that the seller has the opportunity to offer their property to several brokers and agencies. Under this model, the person selling the property is entitled to the sales commission.

This is the common practice for selling property in Ibiza and is a feasible choice for those who are prepared to actively work with different agents and coordinate their efforts. Working with multiple agencies or agents results in different marketing approaches, which can vary significantly in quality and quantity depending on the strategy. Nevertheless, this option remains popular with sellers.

Opting to list your property with multiple real estate agencies, it is advisable to actively monitor how other agencies are promoting your property online. Some agencies may choose to feature your property on the same portal, leading to multiple listings.

Being aware of your property’s marketing assets is another option we suggest. This way, you can influence how your property is presented on the market and ensure that the marketing quality aligns with your expectations. Share these materials with all the involved agencies to guarantee a professional presentation of your property to potential buyers.

Many real estate sellers opt for an exclusive contract with a real estate agency. This exclusivity ensures that your property takes center stage. The appointed estate agent is solely responsible for ensuring that your property is marketed effectively. The agent accompanies you throughout the entire marketing process and gives you the opportunity to personally influence the presentation of your property. The agent also passes on marketing materials to other agents and can handle all marketing and advertising activities on behalf of you.

Opting for an exclusive contract gives you the opportunity to market your property uniquely with individual branding, as opposed to different advertisements from different agencies with differing styles and strategies. Having a clear marketing strategy tailored to your property helps to avoid unnecessary misunderstandings and disagreements between you and other agencies. This is particularly important to avoid different valuations of your property on different platforms.

An additional advantage of this contract lies in curated branding and customized advertising tailored specifically to your property. This allows for a creative presentation both online and offline in a new context. Consequently, the property appears more exclusive to viewers, resulting in increased attention and broader recognition for the property.

Bear in mind though that neither of these methods is better from the outset and none guarantees a successful sale more than the others. It is advisable to choose the option that you personally feel is best for you and your property. In addition, your estate agent can give their professional opinion on which method might be most beneficial for your situation.

04: MARKETING YOUR VILLA FOR SALE IN IBIZA

The successful marketing of your property is the most important factor for a successful sale, alongside the expertise of your real estate agent. It is therefore important to have a suitable marketing strategy.

In Ibiza, the estate agent or real estate agency is usually responsible for the budget of all marketing activities, regardless of whether it is a standard or premium property. However, with luxury properties, it is more likely that the estate agent will invest more resources in marketing, increasing the chances of a successful sale.

Particularly, this is because a higher investment leads to an enhanced quality of marketing. A more effective marketing strategy, in turn, attracts increased attention to your property. You could request your agent to increase the marketing budget. Alternatively, property owners have the option to provide additional funds beyond the expenses covered by the agent. This allows for investments beyond those undertaken by your agent, aiming for even more effective marketing and consequently achieving more successful outcomes.

CW Group takes pride in producing all marketing materials in-house and covering associated costs. Our unique 2-day standard strategy is applied to all listings, ensuring that the entire marketing process is completed within two days of the initial promotion. This innovative approach sets us apart significantly from other real estate agents in Ibiza. Opting for an exclusive partnership with us means we shoulder all expenses, ensuring you receive the best from our marketing efforts. As a result, your property is presented in pristine condition and undoubtedly stands out from the competition.

CW Group has built a reputation for developing outstanding marketing strategies for the benefit by our customers. Our work ethos revolves around developing unique marketing approaches that best suit each individual property. We take great care to ensure that the marketing materials we produce are bespoke and never duplicated.

05. Viewings of your property in Ibiza

Our in-house team of experts specialize in taking the visual representation of your property to the next level. We produce professional and industry standard real estate photos and videos to showcase your property in the most favourable lighting.

We use our social media channels, which are known worldwide, as powerful platforms for promoting your property. This includes filming and publishing on our esteemed YouTube channel. In addition, our team designs and sends customized mailings to potential clients to further intensify the promotion of your property.

Once the marketing assets are photographed or documented, you should host an open house for comprehensive viewings. This event provides an excellent opportunity to promote your property through advertising and personal interactions.

Viewings are crucial to the sales process as they give potential buyers an authentic impression of the property. Before the full range of sales activities can be tackled, the physical preparation of the house is crucial. The house should be presented in pristine condition to facilitate the taking of high quality photos and videos. All work on the property must be announced and fully completed before marketing activities begin.

Consider discussing with your agent, before the first viewing, the specific aspects of your property that hold particular significance for you. Share insights on features you’d like him to emphasize during viewings with potential buyers, as you possess the most intimate knowledge of your property. Furthermore, it is advisable to revisit the property with your agent to ensure that he is well-acquainted with all pertinent details and unique characteristics.

Your experienced real estate agent will try to incorporate as many of your suggestions as possible when presenting recommendations to interested potential buyers. It is advisable to grant your agent as much flexibility as possible during viewing appointments. Since you cannot predict when a potential buyer with high potential might appear, allowing flexibility in scheduling viewings increases the likelihood of receiving offers and, consequently, achieving a successful sale of your property.

Based on our extensive experience, it has always proven beneficial to avoid attending viewings with potential buyers and your agent. This is partly because, as a homeowner, you have an emotional connection to your property and may tend to present the villa too enthusiastically, which may not have the desired effect.

There is also a risk that you will overwhelm prospective clients with information about the property that may be irrelevant. In addition, a potential buyer may feel uncomfortable expressing their opinion in your presence, especially about aspects of the property they don’t like.

The significance of virtual viewing options has increased considerably in the past few years. In fact, today most potential buyers prefer to view properties virtually. It is therefore advisable for you and your estate agent to consider virtual viewings. However, it is important that you gather information about the potential buyer in advance to assess the seriousness of their interest in your property. This will ensure that the virtual viewing is used effectively and the time is well spent.

You have commissioned a real estate agent who specializes in the professional presentation and sale of properties. Let the experts do their work. Your estate agent will then inform you about the progress of the viewing and give you his preliminary impressions.

06: NEGOTIATING WITH THE BUYER

This is where the expertise and experience of your real estate agent come into play. Your agent will present you with offers from potential buyers. A trusting business relationship can be beneficial here, as your agent can assist you in making an informed and appropriate decision regarding the best offer for you.

Your estate agent would also provide reports on all viewings carried out and compare these with previous successful viewings and sales. This will give you a comprehensive basis for your decisions regarding the offers received. An experienced broker will not pressure you to accept a particular offer, but will help you understand all the options and offer you professional advice.

Suppose you have arranged for a gym to be built during viewings of your property. You agree with a potential buyer to cover the costs and complete the gym before the sale. However, if the buyer is not informed in advance of the exact construction, the materials used and the number of gym machines, their expectations of the result could be dashed. This could lead to disappointment and the prospective buyer could withdraw their offer, jeopardizing the sale.

Before acceptance of offers, it is advisable to draw up a detailed inventory and all relevant information about the property. It is also advisable to set a budget for such situations, which is agreed with the potential buyer. By having a clear agreement, the buyer might be willing to pay the difference to improve the quality of the desired changes. This is better than agreeing to add a gym without a set budget.

COMPLETION OF THE PROPERTY SALE

After a thorough examination of the offers, together with your agent you will make an informed decision on the acceptable offer and the corresponding price. Your agent will then draw up a reservation contract containing all the conditions agreed during the negotiations. This marks the start of the contract signing phase, which is managed by your agent. Additionally, we recommend involving a lawyer at this stage of the sales process to review the contracts and ensure that all procedures run smoothly and promptly.

The broker will coordinate the communication between you and your lawyers to arrange the signing of the reservation contract between you and the buyer and the payment of the reservation fee. Subsequently, the purchaser then signs a privately negotiated contract and makes a payment of 10% deposit of the sales price.

As a rule, the reservation fee and the 10% deposit are non-refundable unless there are exceptional circumstances. This contract is binding for both parties and an early exit without financial penalties for the buyer is not possible. In addition, the agreement is also subject to due technical and legal diligence.

In other words, the buyer has the right to terminate the contract and recover the amount paid without penalties if one of the two due diligence checks takes a long time and leads to unfavorable results.