Real estate in Estonia is a great investment. It'd make for a perfect residence for you or a fitting vacation home for when you go here. Either way, there are lots of benefits to owning a property in Estonia
. So when the time comes to sell it, you have to do it properly too. You owe it to all the times you've enjoyed this place, right? It's only natural that you give it the send-off it deserves. And to do that, you need to know the basics of selling real estate in Estonia. Learn what you need to do, what you need to show, what you have to pay for, and more.
What Are The Costs of Selling Your Property in Estonia?
If you want to sell your property in Estonia, there are a lot of things you need to pay. Don't think that just because you're the seller in this situation you don't have to spend any of your own money. The process of selling real estate in Estonia comes with a few costs, namely the notary fees, fee for getting the Energy Performance Certificate, costs for repairing/sprucing up the place, and the income tax levied on the profit you earn. If you hired a real estate agent
, you'll also have to pay their commission too.
Should You Sell Your Property Privately in Estonia?
Here in Estonia, it's not a requirement to sell your property through real estate
. If you want to, you can put your property in Estonia for sale on your own
. This would even decrease the costs that you have to pay throughout the process. Sounds like a win-win situation right? Well, only if you're already familiar with selling property in this country. If not and it's your first time doing this, on top of the fact that you're not fluent in Estonian, then you're better off hiring a real estate agent. Their expertise and knowledge will help you a lot!
How Do You Make a Property Valuation in Estonia?
One of the first steps in selling real estate in Estonia is to conduct a property valuation. This is a kind of survey that determines the value of your property. It's from here that you can set an initial asking price when you finally put your property in Estonia for sale. If you hired a real estate agent to help you with the sale, it's highly likely that a valuation is part of their services. If not, or you decided to sell your property on your own, you can always hire a third-party company to do it. Do note that the buyer may also conduct a valuation as part of their application for a mortgage in Estonia
How Do You Survey Your Property for Selling?
Before you conduct the valuation, you'd do well to survey the place yourself first. Why? Because then you can see all that would need fixing and have them taken care of. There are a lot of things that buyers will look for in a property
, ranging from a good floor plan and layout to working utilities and nearby facilities. This, in turn, will make your place cleaner, more pristine, and more efficient. So when it's time for a valuation, you can expect a higher value for your property. Of course, this also means that you can set a higher asking price for your real estate once you put it on the market.
How Do You Market Your Property in Estonia?
Once your property in Estonia is all spruced up and you already know its worth from the valuation, it's time to officially put it on sale. And one of the important steps here is to market it properly. These days, your best bet is to have it featured on a popular property listing website
. Since most people search for what they need online, real estate has gotten a good position in the digital landscape. This also lets international buyers who are not in Estonia have the chance to check your place out.
What is The Process of Notarizing Your Property in Estonia?
Among all the people that you'll need to hire to sell your property in Estonia, the notary is the most important. It's basically his job to make sure every step is legalized and becomes official. They'll even draw up the important documents that will cement the agreement between the seller and buyer. Without them, all your efforts to sell your place will be in vain. This is also why you'll need to hire a trustworthy notary. One that you can rely on and, most importantly, understand. Especially if there comes a time when you'll have to authorize the notary to sign documents on your behalf.
What Documents Do You Need To Sell Your Property?
So, what are the important documents that you need to sell your real estate in Estonia? There's the title deed, Energy Performance Certificates, paperwork regarding the mortgage on the property (if still applicable), and include some proof of identity (a valid passport will do) for good measure. Do note that some of these, namely the documents that come from government offices and entities, may take some time to acquire. This is why you ought to get most, if not all of them even before you put your property in Estonia for sale. It will guarantee a quicker process.
How Do You Set Up the Sale & Purchase Contract?
As already mentioned, it's mainly your notary who will draw up the sale and purchase contract/s, specifically the pre-purchase protocol. During this time, it's in your best interest to include terms and conditions that will allow you to exit the agreement in light of certain situations. Remember that the pre-purchase protocol is an official contract once it's notarized. It will really bind you and the buyer to the sale once you've signed it. And if you ever bow out of the agreement afterward, you will face some serious consequences. The most common of which is that you'll have to pay the buyer back double the amount of the 10% deposit they paid you.
What are The Legal Issues in Selling Your Property in Estonia?
The nature surrounding the legal binding of the pre-purchase protocol is only one of the many legal issues
that surround Estonia's real estate. Though you have no legal obligation to disclose any information regarding the property to the buyer, the latter can still ask you a series of questions instead. And you're expected to be 100% forthright about it because the moment the new owner (buyer) discovers a defect in the property, you can still be liable for it. Moreover, the transfer of ownership here in Estonia isn't as simple as changing the name on the title deed. The buyer still has to apply for the transfer of ownership in the Land Register.
How Long is The Process of Selling Your Property?
No one can tell how long it will take you to sell your property in Estonia. Not your notary, not your property lawyer, not your real estate agent, no one! The length of time it will take for the entire sale to finish will depend on various factors. As already mentioned, gathering up important documents may prove to be too time-consuming. If you don't do this beforehand, you risk having to spend around six months, possibly even more, on the sale. On the flip side, if you start the process already prepared, then it may only take around two to three months to finish everything!
What are The Best Tips for Selling Property in Estonia?
Finally, here are some tips
on how you can sell your real estate in Estonia without any problems. Firstly, turn your home into an immovable property. If you plan to see your residence, simply putting it on sale is not enough. You have to prepare it for the sale, which means sprucing the place up, taking out most of your belongings, and the like. In this regard, you'd do well to set a move-out date on the pre-purchase protocol too. Only when the buyer knows when you no longer occupy the home will they look at it more as an immovable property that they can purchase.
Planning to sell your property in Estonia? Then you should know the basics. At least, before you start the process! Having prior knowledge of what to do, what to pay for, and more will help you more than you probably realize.