When purchasing a home, it is very rare that you will be thinking of a plan to sell the property unless it is purely for investment. This can make it difficult when you need to sell, especially if you are selling because you can no longer afford the property. Struggling to sell a property can be incredibly frustrating, not to mention the financial impact.
A variety of factors, such as a sudden change in circumstances, loss of rental income, or the end of an interest-only term, can mean that you may not want to but you need to sell your property. The selling process can be frustrating and difficult at the best of times, but when the property is putting a strain on your finances, it is even more difficult.
The sales process may leave you feeling like you are running out of options but there are always solutions.
Reasons for struggling to sell
Unfortunately, even at the best of times, there are far more properties on the market in Spain than there are buyers. This makes it difficult to find a buyer and even more difficult to sell for the price you want.
In recent years, the Covid-19 pandemic and Brexit have both reduced the demand for second homes in Spain. This has further decreased demand, and this is a trend that is going to continue.
Between this and decreasing property prices, there has never been a more difficult time to sell a property in Spain.
“Can I sell if I am in negative equity?”
One common misconception is the idea that you cannot sell if your property is in negative equity. This idea leaves many homeowners paying a mortgage for a property that they don’t even want to hold on to.
Selling in negative equity does present some challenges but with the right advice and help, it is still possible.
Read more about negative equity.
Ultimately, you are still responsible for paying the full mortgage amount. This means that after your property is sold, you will need to pay the difference between the sale price and the remaining mortgage. On top of this, there are further costs, such as sale costs, taxes, management fees, and even currency fluctuations, that can add to the overall costs. Paying these can be a daunting prospect but, if managed in the right way, can allow you to easily sell your property.
What are my options?
Common advice is to sell your property for well below market value. Whilst this may increase the chances of selling, it will also increase the shortfall that you need to pay.
In Spain, there are alternative ways to dispose of your properties without the hassle of selling on the open market. However, these processes are complicated and require knowledge and experience of the Spanish property market and legal systems.
Our experienced, UK-based team at EU Property Solutions works closely with our Spanish legal teams to navigate this minefield so you don’t have to. We have been helping clients who struggle to sell their properties for over a decade. In that time, we have achieved hundreds of life-changing settlements.
If you would like to find out your options, you can get in touch with our team on 0330 124 1230 or email [email protected]
A common misconception is that holding on to your property will allow the value to increase. Whilst this may come true, it is also just as likely that the value could decrease or stay the same. It is never going to return to the value it was purchased for. The best option is to be realistic, the sooner you act, the better the outcome.
There is no definite answer here, different properties take different amounts of time to sell. However, if you can’t afford your property, do not keep waiting for that perfect offer. In the meantime, you will be continuing to spend more money on a property that you don’t want or need.
For over a decade, we have been helping people in exactly the same situation you find yourself in. We understand that you have probably been lied to by the bank, developers, and estate agents. If our amazing results don’t say enough for themselves, check out some of our testimonials or, call our office and speak to a member of the team. You can even chat with previous clients of ours over the phone!
