If you are looking for selling your property, here is a piece of advice from SunFin Realty, a professional player in the field of real estate.
We at Sunfin Realty advise all prospective real estate sellers to remember the 4 most important points as mentioned below –
1. DETACH YOUR EMOTIONS – Real Estate Transactions are ‘very high involvement’ decisions for most of the people. The reason is that most of us buy or sell real estate very few times in our life time. Normally just once or twice in life. Also there are lots of emotions attached to real estate in our country / culture, especially when it is a residential property – ‘HOME’.
You will find us and many real estate agents refer to your purchase as a “home.” Yet if you are selling property we refer to it as a “house.”
There is a reason behind this. Buying real estate is often an emotional decision, it is not simply a real estate but where you see yourself and your family live and hence you buy a home.
However when selling real estate you need to remove that emotion from your equation. You need to think of your house as a marketable commodity- Property/ Real estate. Your goal is to get others to see it as their potential home, not yours.
So you have to consciously make this decision, and “de-personalize” both the house and your attachment to its various aspects and view it dispassionately.
2. PRICING IT RIGHT – Quoting ‘RIGHT’ price to the prospective buyer in the first / initial inquiry is a very Right strategy to sell your property promptly and deriving the Right value out of the deal.
If you start out with a high sales price, then drop it later — your house is “old news.” You will never be able to recapture that flurry of initial activity you would have had with a realistic price. Your house could take longer to sell.
Please understand that as your receive a multiple numbers of inquiries, similarly, the home buyer also makes inquiries at multiple number of properties. If you initially quote a higher price with an intention to reduce it during negotiations, the probability lies in the home buyer not even short listing your property for negotiations. Home Buyers are generally a very informed lot and do lots of research on pricing before taking decision.
Let us assume you have landed an uninformed buyer and you have negotiated a higher sale price. In today’s market most buyers need mortgage or a Home Loan to buy a property. The lender will have a value appraisal based on current market conditions, for new property and the depreciated value for construction of your old house. If the appraisal leaves a huge gap which has to be funded by the buyer then the deal falls through.
Once your home sits on the market awhile and you have also lowered your price it is harder to get a good offer. Potential buyers will think you might be getting desperate, so they will make lower offers.
By overpricing your home in the beginning, you could actually end up settling for a lower price than you would have normally received.
The help of an experienced player like us in the initial appraisal of your house cannot be underestimated looking at the cost of failure.
We advise prospective Home Sellers to price their property in a realistic manner after doing a survey / research. One should not add the cushion for reduction of price in the negotiations round.
3. TAKE HELP OF AN AGENCY – You don’t sell real estate every day. The process of selling real estate is difficult and time consuming. When you are selling your real estate, you are also competing with the new properties and other resale properties available. For all these reasons, we would advise all prospective property sellers to hire an professional agency i.e real estate marketing company / consultant / property dealer for the job. The agency would charge you 1 – 2% of the transaction value. But at the end of the day, you would be at Gain.
4. CHOOSING THE RIGHT AGENT – There are hundreds of Property Dealers / Real Estate Agents / Consultants, but very few Professional Players. The reason is that there is no Entry Barrier for anyone to get into this
business. Choosing a wrong property dealer / consultant might not get you the deal done or even might get you into a problem if it gets you a wrong or scrupulous buyer. Please check the credentials of the agency before you hand over them the contract to sell your property.