How to calculate the minimum selling price of a property?

As we approach the end of the year, a large number of homeowners are aiming to sell their home by 2024. One of the most frequently asked questions? What should be the minimum selling price of the property.

Is there a minimum selling price for a property?

The selling price of a home is influenced by a number of factors, including:

• The economic and personal considerations of the sellers.
• Buyers’ preferences.
• The values determined by the market.
• Supply and demand.

Now, although the regulations give homeowners the freedom to set the sale price, they are obliged to declare the transaction using the minimum tax value established by the Treasury, also known as the reference value.

What are the steps to follow to find out the minimum sale price of a property?

The Tax Agency sets the reference value – generally lower than the market price – for the evaluation of properties in Spain. It seeks to calculate the average value in specific areas by taking into consideration the particularities of each property.

To find out the minimum selling price of a property, it will be enough to follow three simple steps. Which ones?

1. Acquire the cadastral reference of the property if you do not have it.
2. Introduce the cadastral reference value in the electronic platform of the Cadastre (https://www.sedecatastro.gob.es).
3. Access the section “consultation of the reference value”.

The result obtained will be the minimum price at which, according to the Tax Agency, the property must be sold.

Why is it not advisable to sell below the cadastral value?

The cadastral valuation is an objective evaluation carried out by the State that considers some aspects such as:

• The location.
• The square meters of construction.
• The meters of the land.

For this reason, although the owner can sell at the price he/she considers appropriate, he/she should not sell for a price lower than the cadastral value, since the Treasury will investigate the reason for this action.

This often happens when parents want to sell the property to their children for a symbolic price.

Sell your property with KM2 Real Estate Services

In KM2 Real Estate Services we are specialists in the commercialization of properties in the best areas of Barcelona and Madrid.

Would you like to get an idea of the selling price of your property? We invite you to discover its current value for free and in less than two minutes with our online property valuator.

We are ready to fulfill your next real estate purpose. Our team of commercial advisors will not stop until we sell your property, we are waiting for you!