Preparing to sell your property THIS high season
It is Mid-November and the onset of high season is here again. The monsoon rains have passed, the sun is out and businesses are preparing for the influx of tourists to Phuket.
The next 6 months is when most buyers will visit Phuket and when most property sales occur. Phuket Real Estate brokers will have already been gearing up for the high season and will be short listing those properties they will concentrate their efforts on most.
Market conditions remain slow but there is an increase in transactions in the resale market, which is offering great value for buyers right now. Real Estate brokers will always concentrate their efforts most on those properties they feel show best, offer excellent value and are the most attractive to their potential buyers.
Preparing your property for sale this high season;
Establish a Price
The market at the moment is very competitive so price your property correctly to attract potential buyers. Consider: what you paid for the property, how long you have owned it, local comparable property prices, what similar properties have sold for, any improvements added, present condition of the property, current property climate and exchange rates movements since buying. Arm yourself with all the facts and remember a property’s value is only what someone is willing to pay.
Signage
Allowing the agent to erect a sign is very important as brand name and reputation may draw in the passersby.
Negotiating
Be prepared to negotiate on your asking price, Phuket is currently a buyers’ market and in the end it is what the buyer will pay regardless of your price.
Sharing costs
In Thailand it is customary for the seller and buyer to share the transfer costs 50/50 but this is up to you to negotiate. Sellers must understand the costs associated with selling their property and incorporate them into the selling price. Trying to renegotiate who pays what fees after a selling price has been agreed with a buyer will almost certainly lose the sale.
Getting your house in order
Before a buyer is found for your property it is strongly advisable to check the following through a certified lawyer in Thailand;
- That you have all necessary ownership documents to sell your property
- An estimate of the transfer taxes payable upon sale
- An explanation of the selling options available to you: can you sell the property leasehold or freehold, can sell the property with the land owning company.
- Whether or not you need to be physically present to complete a sale or you can give power of attorney to your lawyer now whilst you are here.
It is not uncommon that having found a buyer and negotiated the sale price and terms that the seller finds: they are missing ownership documents, the tax will be much higher than they anticipated, the freeholder/lessor is required to complete the sale…the list goes on! All of these are likely to result in a lost sale or at the very least having to return to the negotiating table, delaying the sale and higher closing costs.
Incentives
To set your property aside from others, it is a good idea to offer some enticement such as advance rental bookings, flexible payment options such as vendor financing, a discount on the asking price.
Selling tips;
1. It should always be available at short notice for viewings. If inconvenient leave a key with the agent. Remember the buyer has little time here and lots of other property to see so you must co-operate or potentially lose a sale!
2. Best not to be at home when the agent visits with the buyer or make yourself scarce, otherwise the buyer feels as if they are intruding and not be able to visualise living there. If you are asked to show them around ensure you leave them after in privacy to talk together and look around.
3. First Impressions – Buyers arrival and first view is often the most important, so make sure the exterior of the property is up to standard, garden up kept, lawn mowed, gutters cleaned, windows clean etc.
4. Interior tidiness- ensure the house is spotless and all personal belongings are stored away and everything looks shipshape e.g. toys, clothes, magazines, shoes put away etc.
5. Room Airing - Rooms not used regularly should be aired and use some potpourri or something natural to take away any smells.
6. Pets - Lock them away prior to any visit and do not involve the buyer with them as not everyone is a pet lover and they are a distraction. Also remove pet food bowls and any visible sign of habitation where possible, especially smells.
7. Lighting - turn on all interior lights even in daytime as this makes everything appear bigger and more appealing and open curtains.
8. Paint work - A lick of paint can work wonders and it pays to refresh the look of the property prior to resale as well as mending any cracks and putting the property in the same condition as when it was new.
9. Rubbish -remove bathroom and kitchen rubbish to avoid lingering smells.
10. The buyer may wish to ask further questions and you should be available at short notice to answer them.
11. Professional Photos - listings with professional photos generate an average of 139% more clicks than those without.
12. Update your broker – let your broker know if you have made improvements to the property, reduced your asking price, can offer flexible repayment NOW and don’t wait for your broker to contact you
For more information about this article contact Kevin Hodges, Siam Real Estate (SRE) Tel: 076-383646 Email: ; www.siamrealestate.com
Author: Patrick Lusted