Looking to sell your property? Here are a few basic tips to ensure the success of your efforts
It goes without saying that the ultimate objective of property investors is to reap the benefits of capital appreciation on the properties they have invested their time, effort and above all, hard-earned money in. In order to capitalise on your investments, however, you need to pay just as much attention, when it comes to disposing off the property concerned.
The first and most important point to consider is that the current value of the property should not be based on its purchase price. The Golden Rule in determining the right selling price is the price that a buyer is willing to pay for the property on sale.
Upkeep your property
In order for a buyer to offer a favourable price, the property has to be in good shape. And this warrants hefty spring-cleaning on the part of the investor, to ensure that the buyer is enticed and interested enough in the property. Apart from a thorough cleaning, a fresh coat of paint, as well as fixing leaky faucets, broken glass panels and other eye sores will serve to enhance the aesthetic value of your property and attract the attention of potential buyers.
It is crucial to make the property feel, smell and look inviting and desirable to buyers so that they actually want to live in the property. A fresh new look will certainly go a long way, rather than a tired and gloomy and musty lived-in look.
Have your property appraised
Get a property appraisal done by a certified valuer as well, before inviting buyers to view the property. This will provide both parties a more accurate indication of what the selling price in the area is - and also details of other recent transactions that have taken place recently, involving similar properties within the vicinity.
In order to inform prospective buyers that the property is up for sale, you should advertise in various media, magazines and internet sites. It would also be advisable to use the services of a reputed property agent to cut down on the time and work involved. These agents will advertise the property for you, vet through potential buyers, negotiate with them, and complete the paperwork on your behalf, once the sale is concluded.
With effect from April 2007, foreign investors now benefit from the abolishment of Real Property Gains Tax (RPGT). Previously, foreigners were compelled to pay 30% RPGT if the property was disposed off within 5 years. There are currently no restrictions on the repatriation of funds by foreigners.
Once the Sale & Purchase Agreement is signed and duly returned - stamped and with the requisite approval – and all legal fees, commissions and other incidentals have been dispersed, the investor can reap the benefits from disposing of a property intended for investment purposes, in full.
“The Golden Rule is the right selling price is the price that a buyer is willing to pay for the property.”