Are you looking to sell your property in Turkey? Selling property in the country can be intimidating because of the array of legal and financial requirements that must be met. However, with the preparation and understanding of the process, property owners can make selling a smooth, successful experience. This article will explain how to sell residential property in Turkey, including potential buyers, capital gains tax, real estate agents and other important considerations. With this information, you'll have tools to ensure a successful sale and straightforward process. Whether you have a holiday house, a two-bedroom apartment, or a seaside villa, here is how to get that sale.
Overview of the Turkish Real Estate Market
Turkey's real estate market has experienced remarkable growth in recent years. The demand for Turkish property from international investors is rising, and the market offers various options, from urban apartments to coastal villas. Turkey has established a legal framework to encourage foreign investors in its real estate market. The reciprocity principle allows citizens of many countries to invest in Turkish property with limited restrictions. However, when selling Turkish property, target international and Turkish buyers. Doing this increases liquidity and your chances of getting the right price for the property.
When is the Right Time to Sell Property in Turkey?
The right time to sell property in Turkey depends on various factors, including local real estate markets, economic conditions, and personal circumstances. Look at current real estate market conditions in the specific region where your property is located. Markets fluctuate, so assess whether it's a buyer's market (more properties available than buyers) or a seller's market (more buyers than available properties). A seller's market generally favours higher selling prices.
In some areas, there may be seasonal variations in the property markets. For example, coastal regions may experience higher demand during summer when tourists and seasonal residents actively look for beachfront villas. Economic stability, interest rates, and inflation also impact property prices. International sellers should consider exchange rates between your home currency and the Turkish Lira. Fluctuations in exchange rates can affect proceeds from the sale.
Ultimately, there's no one-size-fits-all answer to the right time for property transactions. It's a decision based on market conditions, personal circumstances, and financial goals. Working with a qualified real estate company helps you make an informed decision and navigate the selling process successfully.
Prepare for the Sale of Property
The number one mistake that many sellers make is they don't prepare their property for sale. When they walk in the door, buyers will decide whether to look further or that the property isn't for them. Preparing your apartment or villa to sell is essential. Making your residential property more attractive to potential buyers increases appeal and value to potentially sell at a higher price to both Turkish citizens and foreign buyers.
Remove excess clutter, and complete a deep clean. Consider professional cleaning services if necessary, and carry out repairs and maintenance. Remove personal items and present neutral decor colours where possible. Curb appeal matters, especially when selling a villa with a private pool and garden. Spruce up the garden, patio, or house deck. Outdoor spaces are a significant selling point, so make them look inviting.
Settle Your Debts Before Preparing to Sell
All debts on Turkish property must be settled before marketing the house. In Turkey, no apartment or villa can be sold with debts attached. These include the twice-yearly council tax payments. The land registrar's office will check to see if there are any outstanding payments. Once the house sale is definite, settle all unpaid bills like internet connections, water, and electricity.
Why Use an Estate Agent to Sell Your Property
Market Expertise: Estate agents understand local real estate markets. They provide insights into current market conditions, property values, and neighbourhood trends, helping you price your property competitively.
Marketing Strategy: Agents have experience in creating effective marketing strategies. They can promote your property through multiple channels, including online listings, professional photography, virtual tours, and traditional marketing methods. Estate agents have access to many home advertising services and networks of contacts, helping your property reach a larger audience and increasing the chances of finding the right buyer.
Buyers: Agents are skilled negotiators representing your interests during the negotiation process. They aim to secure the best possible deal and handle counteroffers professionally. Agents pre-screen potential buyers, ensuring that only serious and qualified buyers view your property, saving you time and minimizing disruptions.
Convenience: Estate agents handle administrative tasks, coordinate showings, and manage the entire selling process, saving you time and reducing the burden of paperwork and scheduling. Real estate transactions involve contracts and legal complexities. Estate agents know about local real estate laws and can help navigate the sale's legal aspects.
Objective Perspective: Selling a property is emotional. An estate agent provides objective viewpoints and helps you make decisions without being influenced by personal feelings. Agents guide home staging, property improvements, and repairs to enhance your property's appeal and marketability.
How to Choose an Estate Agent
Experience and Reputation: Look for real estate companies with track records of successfully selling residential property nationwide. Experience selling property indicates an agent's expertise of local real estate markets. Research an agent's reputation by reading reviews and requesting references from past clients who bought or sold an apartment or villa. A well-regarded agent with a good reputation is more likely to provide high-quality service. Verify that the agent is properly licensed and a local real estate board or association member.
Local Knowledge: A good agent has in-depth knowledge of neighbourhoods and their real estate market. They are familiar with recent sales, pricing trends, and the unique features that make properties stand out. They should have proven track records with both Turkish citizens and foreign buyers.
Communication and Availability: Effective communication is crucial in the real estate process. Your agent should communicate well, informing you about the sale and promptly responding to questions and concerns. Ensure your agent has the time and availability to handle your sale effectively. A part-time agent may not be able to provide good service.
Marketing Strategy: Inquire about the agent's marketing plan for selling property. They should have a strong online and offline marketing strategy. A knowledgeable agent should also help price your residential property competitively.
What Documents are Needed for the Sale of Property
Is there a capital gains tax on selling property in Turkey?
If you have owned the Turkish property for at least five years, you won't have to pay the capital gains tax in Turkey.
Using the Turkish Notary Office to Sell
As of July 2023, notary offices in Turkey can conduct real estate transactions. Whereas previously, they were limited to notarising the original contract drawn up by solicitors, they now draw up the contract of sale and manage the transaction. Once an initial contract has been agreed, sellers will book their appointment via the e-Application page on the Union of Turkish Notaries' website.
They will enter all property details, submit necessary documents, and enter the details of the seller and buyer. Notary offices will then confirm all applications with the land and cadastre office before sending an SMS confirming the time and date to carry out the transaction. The fee will be determined at the time. This decision will simplify and streamline the process for real estate agents, buyers and sellers. Even though buying and selling property in Turkey is quick, this will ensure it happens quicker.
What about Negotiations?
Pricing your house correctly from the start is essential. An overpriced home deters potential buyers, while an underpriced one may not maximize your return. Work with a qualified real estate agent to determine a competitive and realistic asking price based on a comparative market analysis and local market conditions.
Before entering negotiations, know the lowest price you're willing to accept. This is your bottom line or the minimum amount you're ready to sell for, factoring in any outstanding mortgage, closing costs, and desired profit. Have a bottom line, but be prepared to be flexible within reason. Negotiating is about finding a mutually agreeable solution. Consider concessions such as including appliances or covering closing costs.
What are the Costs Involved with the Sale Process?
Real Estate Companies: Using Estate agents to help you sell your property typically incurs a fee, usually around 3% of the sale price, but it varies. This fee is negotiable.
Potential Capital Gains Tax: Turkey imposes capital gains sale tax on the profit made from the sale of real estate. The rate varies depending on factors like the duration of ownership and the property type.
Property Evaluation Costs: A property evaluation report is required to determine the property's market value. This report incurs a fee.
Notary and Legal Fees: Certain documents and contracts must be notarised for foreigners. Notary fees apply, and the cost depends on the number of pages and the nature of the documents.
Title Deed Transfer Fee: This fee covers the transfer of the property title deed to the buyer by the land registry office and is typically shared between buyers and sellers. The exact amount depends on the property's value and location.
DASK (Natural Disaster Insurance): Sellers must provide property earthquake insurance (DASK). The cost depends on the property's size and location.
International Sellers Should Consider Exchange Rate Fluctuations
Foreign sellers who plan to take the house sale proceeds back to their home country should look at currency exchange rates and transfer rate fees. All house sales in Turkey are completed in Turkish Lira. Still, thankfully, due to the quickness of the sale, the currency exchange rate shouldn't fluctuate that much between the sale being agreed upon and the transaction being made.
Why Use our Agency to sell your property in Turkey
Our experienced real estate agency will expertly market and promote your property to attract potential buyers, both Turkish citizens and international buyers. We have a strong internet presence and offices in Istanbul, Bodrum, Antalya and Fethiye.
Benefit from our strong marketing network and connections in the real estate industry, increasing your chances of finding qualified buyers quickly. Many of our buyers bring lots of foreign capital into the country.
Our real estate agency will handle all the negotiations, terms of sale and paperwork, ensuring a smooth and efficient selling process. Our real estate agency will also provide expert advice and guidance while selling, helping you navigate any challenges that may arise. Our scope of service continues till your home is sold. Contact us here today to help you sell your property in Turkey.