Sellers must do their homework and undertake research on the existing market value of properties in the neighbourhood
From a buyer’s side, property purchase is a big decision and it’s often made after much deliberation. It involves not only investing one’s savings in an asset for a long term but also, if a mortgage is utilised, the need for regular, long-term payments. Property transactions from the seller’s side can also be a complicated task, particularly if s/he does not possess enough knowledge on how to increase the value of their property.
Just as customers undertake due diligence in their purchase, it is also important that sellers in the secondary market take the right steps to gain more from a property transaction.
We recommend several measures to add value in real estate transactions in the secondary market.
1. Don’t underestimate the power of background research: It is important that sellers do their homework on the existing market value of properties in their neighbourhood. A simple online search will offer insights on existing market prices in specific communities and help one to set a pricing benchmark. Check out rates offered by other developers/sellers in the same location and compare the terms with respect to the size, type and floor area of the property.
2. Research the value of transactions of similar properties in the past three to six months: A study of price trends will help in perfectly timing your property sale.
3. First impressions count: Always ensure that the property is maintained to the highest standard. First impressions matter and the property should be well-maintained and exhibited in the best condition possible.
4. Create additional value: Sellers can create additional value for their property by using new painting, landscaping the garden, and in case the property is older, relook at changing cabinets, cupboards and/or bathroom tiles and sanitaryware. Such refurbishments will give your property a great advantage against similar properties. In villas, the addition of a pool is another example of value creation. Upgraded properties tend to have shorter turnaround time; they sell faster.
5. Work with a professional agency: After undertaking the primary research and gaining insights into the market conditions, it is advisable that sellers work with an established property services company to ensure that the property is sold at the right price within a reasonable timeframe. Outline your expectations clearly to the agency, which will help the real estate professionals to meet your terms and deliver on your brief. In turn, they will recommend a sales and marketing strategy tailor-made to your requirements.
6. List with one or two agencies only: While many are tempted to list their property with multiple agencies, it is recommended that the listing is done only with one or maximum two agencies. This will avoid duplication and ensure that the entrusted agency goes the extra mile in creating value. Further, remember that listing with multiple agencies creates a sense of false supply that impacts market prices.
7. Do not reject offers outright: Instead of rejecting offers upfront, always suggest a counter offer. This will help in building engagement with potential customers and assist at arriving at a price that is agreeable by both parties.
8. Highlight the USPs: Sellers must instruct the agency that all the unique selling propositions of the property are clearly highlighted in the sales pitch. The layout, views, condition, upgrades made, amenities, community services, ease of access and other factors must be outlined in the listing so that potential customers get a first-hand understanding of the property.
9. Creative display of property is a must: Ensure that your agency uses professional photographs and videos of your property and that the presentation is of a high standard. This is important and will assist in creating the right perception of the property value.
10. Finally, don’t be emotional: While it is only normal that one tends to get emotional about the transaction, remember that it is a business transaction; keep your emotions in check. Stay rational and take advice from your chosen agent as they will have more experience when it comes to representing a property at the right price to the right target.
Source: Khaleej Times