Selling real property is not an easy task, especially in view of the current state of the real estate market. Over the last years we have witnessed an exceptionally dynamic market, with either sellers or buyers dominating at one time or another. Ultimately the real estate market is not an exception from the rules, according to which other markets of goods or services function. The supply and demand for a specific property determine its price and sale. The realistic approach in selecting a strategy is of key significance for the realization of the real estate market. And if some of the sellers can await with the sale and correct their approach, for the others the sale is urgent, and finding the right approach at the very start of the process is without an alternative.
Here is our advice when you want to sell your property:
Specify realistic market price for your property
A great part of the sellers determine a high initial price with the idea of decreasing it when necessary or during negotiations. This is a serious error on account of the fact that the high price cannot generate real interest in the property. The high price discourages potential clients from even looking at the real estate offer. Logically there will be no contact leading to making a deal. These errors cause serious harm to real property sellers who seek a quick sale.
Unfoundedly high price brings other negative results as well. The property stays on the market for too long. This causes growing mistrust for the proposition, and the inevitable correction in the price later only intensifies this feeling.
Specifying a price that is too high is the result of many factors but is usually connected to the wrong view of the seller for the market realities: lack of up-to-date information, over-caution, rumors or unrealistic expectations for an increase in the price of real property, etc.
Putting up the market price often stems from incorrect estimations and addition of improvements, accretion, furniture or equipment to the price. For the seller these improvements are beneficial, but for the purchaser they can appear to be not only useless, but also a cause for additional expenditure for reconstruction.
Seek the professional advice of a real estate agent
Real property can be assessed in accordance with three methods:
Expense: The assessment is made on the basis of all costs and expenses required for purchasing the property: property price, attorney fee, notary charges, etc.
Income: In this method the assessment is founded on the potential of the property to generate income in the future. On the basis of this the current value of the property is determined.
Market: The main method in determining the real property price. In this instance the estimation of the property price is preceded a market analysis of a previous period. The specific characteristics of the property are also taken into consideration.
The realtor is actively involved in the real estate market, having and using up-to-date information the whole time. This makes him/her an invaluable consultant as regards the market value of the property.
Apart from the correct assessment of the real property, the real estate agent undertakes an extremely arduous process, which is an important part of the sale, namely: organizing viewings with potential buyers, as well as advertising the real property to the public. Both of these demand the right approach, expertise, experience and plenty of time.
The seller has to be prepared to respond adequately and to be flexible in the process of the sale.
Nobody can choose their clients for the sale. To view the property people with different attitudes, expectations, views, and opinions come. The only thing that they have in common is their readiness to spend some money on purchasing a certain type of property. And while for the seller the real estate is a valuable piece of property, for the purchaser this emotion is irrelevant. A purely psychological attitude is needed for probable negative opinions, objections, as well as differences in the personal taste and preferences. It is probable that many people will view the real estate before there is a transaction.
Flexibility is always useful when conducting negotiations about the price and when discussing the terms and conditions for completing the transaction itself. Sensible compromise is needed, to the benefit of both parties and to the best interest of the transaction itself.
Prepare well your property for viewings
The residence must always be in a condition that is appropriate for viewing. Quite often the owners do not pay attention to the mess while pictures are being taken or viewing is conducted. This never brings about positive results. The photographs of the real property must always be of high quality, well-arranged and informative. The disorder creates an awkward feeling in the potential buyer, and as a result he is almost always in a hurry to leave the site and fails to see the most important or necessary thing that can help him decide on the sale.
Selling property in the inopportune time or season
The goal of the sale is for the property to appear on the market at the right time, at the right price, and to be sold. Quite often the property is at an advantageous price but there is no demand for it due to the fact that it is being offered for sale at a time when there is no specific interest towards this particular type of property. This leads to the offer staying too long on the market, and consequently increases the mistrust of the purchasers.
Lack of transparency and hidden agenda
Some of the sellers willfully hide problems connected both to the property and to its documentation as well. These problems are almost always uncovered by the experienced realtor, and we must not overlook the fact that the majority of the purchasers are well-informed. Information on the subject can be easily located on the internet. In other words, everyone is to a certain extent prepared for the combination of circumstances, on which he or she must concentrate during the viewing. The existence of hidden problems leads to mistrust, negative reputation, and ultimately ruins the deal itself.
Such problems can be caused when there are hidden document “defects” of the property.
On conclusion, sale is a complex problem. The correct approach towards it is a guarantee for the absence of problems, as well as for a good financial and time result.