Question 1

What taxes do I pay when selling property?

Accepted Answer

Sellers typically pay: Capital Gains Tax (CGT) - 6% of selling price or zonal value (whichever is higher), Documentary Stamp Tax (DST) - 1.5% of selling price, and sometimes real property tax arrears. Buyers usually pay transfer tax (0.5-0.75%) and registration fees. However, this can be negotiated between parties.

Question 2

How do I determine the right selling price?

Accepted Answer

Consider: 1) BIR Zonal Value (minimum for tax purposes), 2) Recent comparable sales in the area, 3) Current market conditions, 4) Property condition and improvements, 5) Location and accessibility, 6) Professional appraisal (recommended for high-value properties). Price slightly above your minimum acceptable price to allow for negotiation.

Question 3

Should I hire a broker or sell directly?

Accepted Answer

Brokers typically charge 3-5% commission but provide: wider market reach, qualified buyer screening, negotiation expertise, paperwork assistance, and faster sales. Selling directly (FSBO) saves commission but requires more time and effort. For high-value properties or if you lack time, a licensed broker is recommended.

Question 4

What documents do I need to sell my property?

Accepted Answer

Required documents: Original Owner's Duplicate Title (TCT/CCT), Latest Tax Declaration, Real Property Tax Clearance (updated), Valid IDs, TIN, Special Power of Attorney (if using representative), Marriage Certificate (if applicable), and for inherited properties - Extrajudicial Settlement and BIR CAR.

Question 5

How long does it take to sell a property?

Accepted Answer

Average selling time in the Philippines is 3-6 months, but varies by: property type (condos sell faster), location (prime areas sell quicker), pricing (competitively priced properties sell faster), and market conditions. Preselling units can take longer. Working with a good broker and proper pricing can speed up the process.

Selling Property FAQ

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Selling Property FAQ

1What taxes do I pay when selling property?

2How do I determine the right selling price?

3Should I hire a broker or sell directly?

4What documents do I need to sell my property?

5How long does it take to sell a property?

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