ESV. Chudi Ubosi, FNIVS |
One
of the major challenges a real estate sometimes practitioner faces is clients
sometimes rattling him with the questions: “What exactly are you doing or have
you done for me? I could have sold the property myself. All you did was to find
me a buyer. I could have done that myself”.
My
usual very polite response is that whilst it remains a choice that can be made,
it is not advisable. It is almost tantamount to treating oneself for an illness
or diagnosing the fault with a car engine and going ahead to fix same.
However
what does it take to sell ones property by personally? The first step is to
determine the possible sale value of the subject property. There are several
ways, but the most effective means would be to invite a professional Estate
Surveyor and Valuer to appraise same and proffer a range of achievable values.
Many
times as professionals we have to explain very carefully to vendors that the
value of their property does not always equal the cost of the challenge
(especially if the property is being sold to mitigate some challenge in life)
for which the property is being sold. It is very common to find siblings
selling an inherited property and each one has an idea of what he/she wants to
achieve with his/her own share of the funds. By the time all these expectations
are summed, their total value is sometimes 300 – 400 % higher than the value
realizable from the asset.
Determining
the value using a professional will also ensure that the vendor does not under
sell the asset thereby losing money in the process. The second step would be to
ascertain the status of one’s legal title. What documents cover the property –
are they registered and if not can that process be undertaken before the sale
is commenced or during the process of the sale, or declared upfront to all
parties involved in the transaction.
Unregistered
title documents i.e. purchase receipts deed etc have a way of frustrating or
slowing down sale transactions if not sorted out at the onset. It may also be
advisable to carry out a legal search at the Lands Registry and obtain a legal
report on the status of your registered title. It is sometimes surprising what
these searches turn up. A legal practitioner is best engaged to handle this.
Experience
has shown that properties are easier sold with vacant possession. This is
because of nasty experiences purchasers have gone through or stories they have
been told by other purchasers. If the property is tenanted, it is important to
intimate the tenants of the sale for many reasons. These include that it makes
viewing the property easier by prospects without fear of embarrassment from
tenants. It also alerts the tenants that there may be a need to commence a
search for a new accommodation, so that long before the quit notice comes they
have been psychologically prepared.
One
mistake a lot of vendors make is the dream of a “quite sale”. This is utopian
especially if the first or second prospect who views same does not conclude the
sale. With numerous prospects walking through the property daily and asking a
myriad of questions it will only take a little while for the tenants to
determine the status of things. And so Landlords make the mistake of letting
their tenants “discover” from third parties that their property is up for sale.
This only serves the purpose of setting the tenants against the Landlord and
creates from for unhealthy suspicion and conflict which will only in the final
analysis slow down the sale or frustrate it completely.
Agree
with the tenants on convenient times for prospects to view the property and
most importantly agree with them on possession (preferably in writing) upon or
before conclusion of the sale.
The
fourth step would be to tidy up the property. A clean environment, tidy house,
painted walls etc, make a property easier to sell than one that is the reverse.
Ensure fittings are in good shape, not necessarily new but at least in place
and not for example hanging from the wall or something of that nature.
There
is hardly any sale that can be concluded without some form of marketing. The
first form of marketing is personal contacts and referrals. As the owner of the
property, one can boldly display a “FOR SALE” sign on his property inviting
people to treat. Advertisement can be placed in the print media also marketing
the property and its features.
Once
offers are being received from prospective buyers, the vendor must be in a
position to appraise each and every offer, meet with the prospects and
determine which is a serious offer and one that is frivolous. The vendor must
indeed also be flexible in terms of pricing and acceptability of same. More
often than not the most serious offer could be one that is maybe 10% below the
acceptable price. A vendor must be able to determine at what point he must
close, and the terms and conditions of the conclusion. At the point of closure,
the vendor must scrutinize the transfer documents to ensure that there are no
clauses inserted that will be injurious to him or keep him obliged to the new
owner even after the sale. This task is best undertaken once again by a
professional – either an Estate Surveyor and Valuer or a legal practitioner.
All
said and done, it is difficult not to engage professionals in the sale of one’s
property.
It
is indeed dangerous to say the least. Imagine a property that remains on the
market for say 6 moths, with an average of 3 – 5 prospects calling daily. A
vendor who decides to sell his/her property on his own will invariably become a
full time estate agent against his/her wish. Then think of the numerous times
the property will be visited for viewing by prospective clients. Each of these
inspections would have to be conducted by the vendor personally or his
associate.
There
are so many other small duties carried out by the professionals in the course
of a sale that cannot readily be documented but are critical to the success of
same. The loss and subsequent conflicts that may result will far outweigh the
meager fee which a professional would be paid to navigate a successful
transaction.
If
you want to showcase the properties you would like to sell to millions of
elites that have the financial wherewithal to pay for them, check out this link
below:
http://www.tectono-business.com/2016/06/are-you-estate-surveyor-or-property.html
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