Guidelines in selling property
Your purchasing power has increased and you are looking to buy a new house. Your kids have grown to an age where schools becomes a concern. You want to live in a neighbourhood which you have always desired. You want to sell the existing property and down-size because your kids have started their own family and you want an additional investment property for retirement planning. These are common reasons for people putting their property on sale; the first step. First step is always the most daunting and overwhelming process, especially for first timers. This article seeks to help you make everything simpler.
PRICING IT RIGHT
The first thing you will need to do is appropriately price your property. In the past, HDB flats sellers seek the valuation to determine the price, but due to the changes in regulations, seller would have to rely on the published pricing at HDB website to determine how much your flat is worth based on surrounding transactions. Private property sellers can seek assistance from the banks. Sellers always wants to price the property in a way that can cover the existing loan and also with good sales proceeds after all deductions, but it is also a common misstep most sellers price their property above market price to create room for bargaining. In present information age, buyers can look up URA or HDB website for transacted prices. Hence negotiation will always take those prices into account. Pricing your home too low may also cause people to assume a desperate sale or major problems in the property.
KNOW YOUR CASH FLOW
It is advisable to know the cash flow and deductions that will occur in the sales transaction as assurance for a wise sale. A good experience agent can help accomplish this step easily. This allows you to plan ahead, knowing what is the next property you can afford, and avoid going into a negative sale unnecessarily.
PREPARE YOUR HEART
The most torturous part of selling your property is the emotions. What you are selling is a resale property and buyers flock to resale properties because of the negotiation factor. Buyers will want to ‘test the waters’ when they negotiate and often pass many negative comments on your property. It is common that such comments provoke the sellers, therefore, using an agent makes perfect sense to shield yourself from these negativity. ‘One man’s food is another man’s poison’ is the saying and what looks good to you may not appeal to someone else. A good agent will be able to handle these objections and turn them into your favour.
A property agent will help you with these things:
1. Evaluate the price of your home
2. Market your property
3. Send potential buyers your way and entertain them
5. Handle paperwork such as the Option to Purchase (OTP) form
In order for all of this to work, however, you will need to:
1. Stage your home (either alone or with your agent)
2. Prepare all relevant documents such as bank statements/CPF statements/loans etc. etc.
3. Keep an open mind when it comes to negotiation
4. Accept odd viewing hours
5. Do follow-up calls to gauge interest or to thank them for coming down
PLAY YOUR PART
Property Agents do most of the leg work but you, the seller, are not totally exempt from participating nor are the tasks you have to do any less important. People will hone in on the best price for them in the areas they are interested in and the interior of the home is what helps motivate them in making their purchase. So you will need to keep your house neat and tidy.
NOT ALL THINGS CAN BE EXPLAINED
However, sometimes the best price and the best looking house just won’t sell. This can be chalked up to the market condition. Property agents are acutely aware of this and will advise you based on the fluctuations in the industry. So, take your agents’ advise seriously. You employed an agent to do a job he is good at, so it would be foolish to tell him what to do. He does more transactions in a year than you ever have in your life. He handles objections like his daily meals. He knows the pricing at his finger tips.
5 BASIC RULES
There are 5 basic rules which makes up the wireframe to selling your property; Staging, Price, Market Conditions, Marketing and Customer Service. Selling your property will always be an endeavour but you can make it a relatively enjoyable experience if you adhere to these basic guidelines. Contact us! Recruit our decade old professional experience to your benefit.