sell a holiday home
Selling A Property With Property Direct From The Owner
When it comes to sales, real estate can be difficult. Once you learn how to get a hold of some property, you may feel like the hardest part of being a real estate investor is now behind you. However, there is another key part to real estate investing that you cannot afford to overlook: Knowing how to sell high in a bad real estate market.
Now, when the going is good, as they say, then you may have no trouble flipping properties, selling for big profits and generally turning most – if not all – of your real estate deals into gold. In fact, many real estate investing ‘gurus’ recall the market of just a few years ago very fondly because, in one guru’s words, ‘You could mess up big time and still make money. People did not even have to really know what they were doing’.
In tougher markets, however, you can find yourself spending a great deal of time and energy just trying to get rid of properties once you have obtained them. While you may feel like you are investing full time, you may not be showing the full-time investing profits you envisioned when you got involved in real estate investing. This is because you have begun to focus on getting rid of properties rather than generating wealth with them. The key to generating wealth with properties in any market is knowing how to sell high. Now, the word high may mean different things to different people, but it should always ultimately mean that you walk away with significantly more wealth than you went into a deal with. Understanding all your options in any given market will help you be flexible enough to meet buyers’ needs – even when you cannot trust conventional options to pull them through.
In a market where many buyers describe buying houses as ‘stealing’ them because the prices are so low, you must learn to cater to buyers who are good risks, but may not have the ability to buy conventionally. By doing this, you will be able to create your own mini-market in which you can set your own prices.
For more information on selling your property visit the Property Direct From The Owner website at http://www.propertydirectfromtheowner.com
Sell My Holiday Home - FSBO - Selling A Property
Sell My Holiday Home
A question that is posed to us here at Property Direct From The Owner http://www.propertydirectfromtheowner.com time and time again is ‘How do I sell my holiday home?’ Selling a property with an estate agent is not nearly as daunting as it first may appear and if you’re thinking of selling without an agent, the downturn in the current real estate market and explosion of the internet could well make your job easier.
Sell My Holiday Home Without An Agent
If you are looking to sell a house or sell a holiday home without an agent, you are known as a “FSBO” seller. FSBO stands for the phrase “for sale by owner.” Although FSBO sellers have always existed, they have become much more prevalent in the last few years due to a number of primary factors.
The Property Market
The property market has suffered a downturn in recent years and as a result many vendors are looking at alternative ways and means to sell their holiday home. In certain parts of Europe, agents can no longer be relied upon to sell your holiday home if indeed they are still in business. Countless holiday home owners have found the company they bought from 5 or 6 years ago are now no longer trading and as a result need a different form of exposure in order to sell their holiday home. The commissions taken by an agent and fees involved have also put some holiday home owners off from listing with an agent. In Spain, for example, an agent will take 5% of the sales price and all for only introducing the buyer. Consider selling direct by negotiating a price with the buyer and keep 100% of the sales price.
Internet Use
The creation of FSBO real estate listing sites has exploded over the last three or four years. As buyers and sellers become more familiar with these sites they often search online for homes instead of driving areas with an agent. A recent study showed 70% of buyers view the property they end up buying on the internet in the first instance. This has resulted in vendors wondering why they should pay a commission of 5 percent to an agent when a site like Property Direct From The Owner http://www.propertydirectfromtheowner.com only charge £99 for 12 months advertising to list a home on the site. Many couldn’t come up with a reason.
No Agent
The decision to sell your holiday home without an agent is one you should make carefully. If you’re comfortable with the sales process going FSBO makes all the sense in the world. If you’re not comfortable with the negotiating process, then you may want to consider using an agent. Ultimately, your first step should be to visit a FSBO site such as Property Direct From The Owner http://www.propertydirectfromtheowner.com and find out more.
Overseas Property, Selling Property Overseas, Selling Property Abroad
Overseas Property
With some experts projecting that many property markets worldwide are either at, or near the bottom of the cyclical downturn, many more people are starting to look at the idea of buying property overseas again. Property Direct From The Owner http://www.propertydirectfromtheowner.com are an internet based real estate company, allowing worldwide property owners the opportunity to list their property for sale and/ or rent via the website with no commissions or fees to have to pay upon the property being sold or rented. The company launched in 2008 in an attempt to provide property owners with an alternative means of selling or renting their property from the traditional estate agent route.
The volume of people logging onto Property Direct From The Owner, to search the property listings, for example, has jumped up by close to 60 per cent over the past couple of months. With overseas property prices having suffered huge falls around the globe, due to the economic crisis, now is increasingly seen as a potentially great time to negotiate a once in a lifetime overseas property bargain. But this can sometimes be easier said than done.
Local property knowledge
Negotiating techniques can often vary from country to country, and that which may seem cheap abroad, compared to UK property values, may not be inexpensive, in contrast with local property prices. This is why it is important to have good local market knowledge, or access to someone who does, in order to secure the best possible deal.
Local property market value
But how do we determine what is genuine market value?
Paul Wilson, Marketing Manager of Property Direct From The Owner says, ‘Prospective buyers should always look at comparable property prices within the given area that they are looking to buy, as this will give them a greater idea of local market value, and place them in a stronger negotiating position’. Comparables sale prices should be as up to date as possible, and it may be necessary to factor in recent price falls, as well as potential future capital depreciation. For example, there are certain real estate companies currently offering homes for sale in Spain with the option of paying an initial deposit now and the rest of the balance in two years time. This would effectively tie a buyer into purchasing a residential unit at today’s sale price.
However, recent data from BBVA, Spain’s second largest bank, estimates that average Spanish property values will depreciate by around 20 per cent between now and the end of next year.
If BBVA’s projection is accurate, anyone buying a home in Spain now, could find himself or herself seriously out of pocket, and potentially in negative equity, by the start of 2011. It is essential therefore to factor in future property price growth or losses and not just today’s market value.
The art of negotiation
A buyer that is not in a property chain, has finance, ideally cash in place will always be in a position of strength. Assess your strengths before entering into negotiations and take advantage if you are in a position of power. Paul continues, ‘Consider the current economic climate, the availability of similar properties in the area and any offers other agents or developers may be running. With so many empty homes - both old and new - on the market, it’s worth negotiating as hard as you can with the vendor’. Those people prepared to buy properties overseas in bulk will also be looked upon favourably, although single unit buyers do remain invaluable to sellers. ‘An estate agent is unlikely to disclose all the information to the prospective purchaser and so it is important that the potential buyer finds out as much information as they can about the vendor, and their motivation for selling. Paul says, ‘There are some sellers that are in a very stressful position and desperate to sell, due to their poor financial state, and this is where some of the best value for money deals can be secured. Therefore don’t be afraid to pitch a low offer’.
Make an offer
There are lots of people looking to haggle asking overseas property prices, particularly in the current economic climate. When making an offer on a property, do not be afraid to offer way below the asking price, even if bordering upon the ridiculous, particularly in the current buyers’ market. After all, a property is only actually worth what someone is prepared to pay for it. Paul continues, ‘We have many visitors to our site looking to buy and are happy to deal direct with the owner. Many buyers believe they are in a stronger position this way and can secure themselves a bargain given the fact that the vendor will pay no fees to an agent on the asking price. It is not uncommon for a buyer to negotiate upto €100,000 off the asking price in this way as each vendor’s circumstances will be different’.
Time on the market
It is a wise idea to try and spot homes that have been on the market for quite some time as vendors are likely to be more willing to negotiate downwards on the price. Paul continues, ‘Unfortunately for some overseas vendors right now, properties can often take years to sell. The longer the home has been on the market, the greater the likelihood the owner will be willing to sell at a reduced price. It is for this reason and the subsequent demise of many real estate companies overseas that we set ourselves up to offer owners what we now offer’.
Extras
When negotiating a property purchase, you may want to try and get a few extras thrown into the deal. Is not uncommon for a buyer to request that furniture is included into a deal, while other purchasers like to request a contribution towards their purchasing costs, such as legal fees.
Location, location, location
‘Location really is the key’, says Paul. ‘Prospective purchasers buying overseas property need to ensure the property will be of interest to locals, because tourist rental and second home markets can often fluctuate, and do not offer year-round rental opportunities’. Furthermore, there have been examples over the years of a mark-up in the price of homes aimed at foreigners which effectively reduces one’s potential exit strategy, when selling up in the future.
Paul says, ‘Locals are often priced out of buying homes located in tourist areas, which do not always offer value for money. This is one of the first signs of where a market begins to collapse’.
Off-plan property
Buying off-plan property abroad has traditionally presented an opportunity to secure a residential unit at a discount on the retail price, particularly during the first and second phases of the release of a development. This is often because developers typically want, or need, to sell a proportion of their stock even before commencing building work in order to raise funds and boost their cash flow and to satisfy their lenders. However, there is a greater risk element to buying property this way, most notably the fact that there are no guarantees that a project will ever be completed. There have been many stories written in the press about overseas developers going bust and investors losing their money. Paul says, ‘There have been instances of unscrupulous constructors, or the fact that they may have run out of money while there is always the possibility that legislation may change, which may affect the planning consent. Some developers are now offering bank guarantees in an attempt to convince buyers their money is safe throughout the build process’.
Ghost town
Another concern with buying property off-plan is the possibility that the development will be left standing virtually empty, once it is finished, due to a lack of buyers. In Spain, for example, government data shows that there are over a million new-build homes lying vacant. It is not uncommon to find areas in Spain which consist of tens of thousands of empty homes, causing the local community, or lack of it, to collapse. Paul says, ‘Personally, I would only buy into an off-plan project if at least 60 per cent of the scheme had already been sold’.
Property oversupply
There are still developers with large portfolios that one would think be willing to accept significantly reduced offers for their unsold property. However there are still a number of developers who remain stubborn in that they are refusing to adjust to current market conditions, by pricing their homes accordingly. Consequently potential purchasers interested in distressed residential stock, to go straight to those banks that have large inventories of foreclosed homes for sale on their books.
Distressed sales
Because banks are not, or should not be, in the property business, having large property stock is proving a huge burden, and so many of them are keen to liquidate their growing residential supply, by selling at below market value. Paul warns, ‘Be cautious of the fact that banks and auctioneers do sometimes offer an extremely low guide price on a property, in order to generate interest, and encourage multiple bids. This can sometimes push values higher, often above what they are worth’.
Exchange rates
Exchange rates should always be taken into consideration when buying property overseas. A shift in the value of the UK pound against foreign currencies such as the euro, and US dollar, can have an enormous impact on the price of a home abroad. Paul continues, ‘It is important to remember that exchange rates can move a large amount in a relatively short period of time. Against the pound we have seen the price of the euro increase by nearly 30 per cent in the last 18 months making a €150,000 property about €45,000 more expensive which demonstrates the effect that exchange rate fluctuations can have on the price of a property overseas’. However, if at the time of making an offer on a home, you feel that sterling’s value looks favourable, then it may be worth taking out a ‘forward contact’, which fixes the exchange rate for a given period of time. Paul adds, ‘Forward contracts are widely used by property buyers as transactions often take weeks to conclude, leaving buyers exposed to a volatile currency market. Fixing the exchange rate in times of uncertainty will protect your property price and budget against exchange rate fluctuations between now and when the funds are required’.
Legal
Anyone buying property abroad may wish to seek legal advice from at least two different solicitors – one based in the UK and one in the given country where the property is located. The two solicitors should always come up with the same answers. Always ensure that legal documents are in English, and appoint a trusted translator, if there is a language barrier.
Due diligence
Wherever you choose to buy property overseas, always ensure that you undertake your own careful planning and due diligence prior to parting with your money.
For further information on Property Direct From The Owner and to find how you can list your property or indeed look for a property to buy then view their website http://wwwpropertydirectfromtheowner.com
Selling Property - Property Direct From The Owner
Property Direct From The Owner http://www.propertydirectfromtheowner.com are a leading web based FSBO (For Sale By Owner) company, allowing worldwide property owners to list their property for rent or sale and undertake commission fee rentals and sales. When you put your house on the market, it’s important for you to consider how you’re going to get pertinent information to your potential buyers. A tried and true fact; having attractive flyers with the right information works. Actually, you need four types of flyers and there are three points to consider when deciding on your FSBO flyers.
Where should you put your flyers? What are the locations that will get your information to the buyers who need it?
1. In the house - Obviously you’ll want to have flyers on display in the house.
We recommend placing a guest book near the front door, asking agents and buyers to sign in. If you’re dealing with an agent, you’ll want a record of which ones showed your house. Place your flyers next to the guest book in a spot where they are highly visible.
2. Sale Sign - You’ll most likely have a for sale sign in the garden so buy a flyer box and put flyers outside so that people driving by can easily pick up your information.
3. Agents - If you’re dealing with an agent, take flyers to each office and distribute them. Let agents know you’re willing to work with them.
What kind of flyers?
1. A photo feature flyer - A total of two photos is probably enough. You definitely need one photo of the exterior; one of the garden if it is attractively landscaped, or the kitchen or the living room. Do not try to display a photo of every room. It’s just too much. You can create a virtual tour or have one created. If you choose to use a company such as Property Direct From The Owner http://www.propertydirectfromtheowner.com then put the page link of your advert on your flyer. That way a buyer can go to the Property Direct From The Owner web site and view everything. There is not enough room on a flyer to do that.
2. A features flyer - List the top five to ten features of the house. What makes it special? Here again don’t try to list every feature, just the top five to ten.
3. A floor plan flyer - Buyers love floor plans, so if possible put a floor plan on the back of your photo feature flyer. Include room sizes as the buyer will mentally start moving in. They will try to visualize where their furniture will go.
4. A financial flyer - Call one or two lenders. Ask them to prepare a financing flyer for you. This gives the buyer a picture of how they might finance the purchase. It’s a great free service for you and the lender gets free advertising. It’s a win-win.
5. Area Services - A really nice touch is to list the name and phone number of local services such as SKY TV, utilities, phone etc. Help your buyer to mentally move in.
How to create your flyers:
1. You can make them yourself.
2. There are lots of online services that will create professional flyers for you. The fees vary but are usually reasonable.
3. Check for some local services that specialise in that type of advertising.
4. Call a title company; many of them will provide free flyers; they get advertising and expect you to do the closing through them.
5. The lender who did your financial flyer may also create an information flyer. Many of them provide this service. Ask them.
To summarise, flyers are important to your sale. So it’s imperative that you put the right information on the flyer. It is a fact, FSBO’S who do the homework of preparing for the market, sell houses faster than those who don’t. So prepare the right kind of flyers and let the buyer take away information that continues selling your house long after the showing.
For further information on how Property Direct From The Owner can help expose and ultimately sell your property, visit their website http://www.propertydirectfromtheowner.com
Sell Property With Property Direct From The Owner
21st century real estate is filled with exciting opportunities for companies who have acknowledged the impact of the internet on their industry. More than 70% of homebuyers first saw the home they eventually bought on the internet. The fact of the matter is that many buyers and sellers know about product availability as quickly as the agent.
The internet and today’s technologically savvy clients have changed the real estate industry forever. Agents who have not stayed current on technology are one click from extinction. In a recent survey conducted by the National Association of Realtors (NAR) more than 70% of respondents said they preferred to locate a potential home online.
Why not? Perusing online listings saves time and fuel, reduces frustration and makes important tax, plot size, square meter-age and disclosure information easy to access. Prospective buyers are finding they can concentrate on certain areas and narrow down their searches in minutes. Property Direct From The Owner http://www.propertydirectfromtheowner.com are a web based real estate company allowing owners of international property to list their property online with no commissions or booking fees to have to pay when the property is sold or rented. Prospective buyers or renters can use such a site to view current worldwide listings and enquire accordingly.
Meanwhile, current and prospective sellers are watching how the market is faring. They want to know the competition, see what is selling and what is not as well as run the comparable analysis programmes featured by FSBO sites such as Property Direct From The Owner.
Let’s face it, today’s buyers and sellers are on the internet. They are browsing for new homes, performing market research before listing their homes and seeing what agents are moving real estate in their areas of interest. These buyers and sellers represent a hotbed of opportunity for companies who want to succeed.
Wherever real estate prospects gather, agents need to get involved. Dynamic new online services such as Property Direct From The Owner http://www.propertydirectfromtheowner.com put the vendor and buyer of a home into direct contact and in doing so, these prospects are generating live enquiries for the property owner who realises the power of the internet and the personality of today’s real estate client.
Imagine procuring names and contact information about clients who reside out of town and are considering relocating to your area. These are the best buyers. These are buyers with a compelling need to find a home. Typically, they also have a desire to acquaint themselves with their new area before they actually start looking.
FSBO companies such as Property Direct From The Owner is an online platform where buyers and sellers come into contact. These prospects become immediate leads to the owner. The owner quite often contacts the prospect and actually introduces themselves to the prospect before the search is closed. This is new-age lead generation at its best.
Owners who understand that prospects are online know there are means to connect with those candidates. This new lead generation technology allows owners to be the first connection the relocating buyer or seller has. One old adage still pertains to today’s real estate leads; “First come, first serve.” There is good old-fashioned merit to being the first owner to connect with a prospect. Today’s technology can make this happen.
Some real estate agents stubbornly resist internet involvement. Others embrace online services. Doubtless, the continuing emergence of online technology will continue to evolve, but quite simply there is no better way or more cost efficient way to connect than through these online services. Join a site such as Property Direct From The Owner today http://www.propertydirectfromtheowner.com and start tracking your enquiries tomorrow.