In recent years, a growing number of Americans have relocated from the United States to Puerto Rico, a charming Caribbean island that offers a fascinating culture, lower living costs, and enticing tax benefits under the Act 60 Investor Resident Individual Tax Incentive . Individuals who relocate to Puerto Rico under Act 60 are entitled to 100% tax exemption on all interest, dividends, short- and long-term capital gains, and gains on cryptocurrencies. In light of these benefits, the real estate industry in Puerto Rico has blossomed. If you want to sell a property in Puerto Rico, follow these guidelines to make the process as efficient as possible.
Hiring a Real Estate Agent
If you are interested in selling a property, note that the Puerto Rican real estate industry functions very differently from that of the United States; since Puerto Rico was formerly a Spanish colony, much of its legal system is based on Spanish law. You’ll have to navigate Puerto Rico’s complex regulations governing the sale and purchase of property. All real estate transactions must be approved by Puerto Rico’s Property Registry, and selling property can result in several fees and copious amounts of paperwork.
In light of the complex bureaucracy involved, one of the most important steps of the selling process is to identify and hire a qualified, experienced real estate agent. A competent real estate agent will help you make sense of each step in the selling process and ensure that you are complying with government regulations. Realtors who have experience working in the Puerto Rican real estate market can help you determine your property’s market value and earn more on the sale. Choose a realtor that is familiar with your property’s area and has a promising track record. We also recommend hiring a real estate attorney.
Getting Ready to Sell
Setting Up Your Property
Before listing your property for sale, make sure that it looks presentable. An important first step is to visit other similar properties for sale in your area, which will give you an idea of how to stage your property and make it as appealing as possible. You can start with your property’s interior, cleaning it thoroughly and removing any accumulated clutter. Since potential buyers will want to use your property for their own purposes, make sure that your personal effects are out of sight. You may even consider renting a storage unit temporarily. As for the property’s exterior, make sure that the paint is in good shape and that any plants are well-trimmed and attractive.
If you are selling a residential property and will be leaving behind household appliances, gather all the relevant warranties and manuals so you can show them to potential buyers. Such attention to detail will make your property more appealing.
Determining the Price
Determining the market value of your property can be complex. After all, the price will depend on numerous factors such as the property’s size, location, and amenities. The current market conditions will also have a bearing on your property’s worth, so an experienced real estate agent can be enormously helpful in evaluating your property’s value.
Be careful not to set an unrealistically high price; if the price is too high, buyers may be dissuaded from even visiting the property, and it may stay on the market for too long, which would arouse suspicion. Keep in mind that buyers will usually negotiate to get a lower price on very expensive properties, so you may end up getting significantly less than you expected.
Listing the Property for Sale
In general, you’ll want to list your property for sale when the demand is highest and the supply is lowest in the real estate market. In Puerto Rico, demand may be lower during hurricane season, so be wary of listing a property during that period.
You and your real estate agent will have several marketing strategies at your disposal to attract potential buyers. For instance, you should list your property online to increase its exposure; doing so can make the selling process much faster. Another important step is to make your property available for viewing. The easier it is for buyers to visit your property, the faster it will sell. To attract as many potential buyers as possible, allow interested individuals to visit the property at their convenience.
Closing the Sale
You can take various measures to make the potentially confusing closing process more straightforward. For example, creating an escrow agreement will make the transaction safer and protect the buyer’s funds. Additionally, the buyer may come forward with a predetermined purchase agreement, which can also streamline the process.
Keep in mind that you will have to pay any outstanding homeowner association dues or overdue property taxes. Further, the closing process, which usually takes place at the lending bank’s offices, may take several hours. All parties involved in the transaction must be present.
PRelocate’s Real Estate Brokerage Services
If you’re looking to sell a property in Puerto Rico, PRelocate can help. We’re a licensed real estate brokerage firm (License C-21696) with extensive knowledge of Puerto Rico’s real estate market. Our team is professional, responsive, friendly, and experienced; with both native English- and Spanish-speaking staff, we can help you break down any language barriers. We can save you time and effort by helping you sell your property quickly and profitably.
Get our help to sell, buy, or rent property in Puerto Rico:
Disclaimer: Neither PRelocate, LLC, nor any of its affiliates (together “PRelocate”) are law firms, and this is not legal advice. You should use common sense and rely on your own legal counsel for a formal legal opinion on Puerto Rico’s tax incentives, maintaining bona fide residence in Puerto Rico, and any other issues related to taxes or residency in Puerto Rico. PRelocate does not assume any responsibility for the contents of, or the consequences of using, any version of any real estate or other document templates or any spreadsheets found on our website (together, the “Materials”). Before using any Materials, you should consult with legal counsel licensed to practice in the relevant jurisdiction.