For sale boards, open houses, auctions, brochure droppings – these are all techniques that have positive responses and are proven to get property sold in many parts of the world. Pricing is of course a major factor, but there are many other smaller points that get overlooked which can make all the difference.
Things to do before approaching a property agent
Many property owners go to real estate agents as their first move to get their property sold. Whilst agents are a good option, there are a number of things you should consider doing before approaching them.
First impressions really do count. Our advice is to look at your property internally and externally and note down the ways in which you can restore it to a condition as close to new as possible.
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Replace any old worn wood or put a new coat over it.
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Repaint the walls inside and outside the property.
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Make sure the garden and pool area is fully maintained and cleaned.
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Replacing kitchen, furniture or anything that will add value to attract a potential buyer.
Display it like a showroom. Light the house up with bright bulbs and lampshades – open the curtains, clean the windows, trim any messy trees and shrubs outside the house, anything to make it feel cleaner, brighter and more inviting.
Tidy away any clutter. Over the years, most houses collect a lot of excess furniture. Most newbie buyers like space, especially storage areas. Ensure you have cleared and tidied all the rooms (especially if you have kids).
Make it clean and smelling nice. If you’re actively conducting viewings you need your property to appeal to all the senses and smell is one of them. Use potpourri or any other techniques to keep the place smelling great.
Try finding your own buyer. This is something people (particularly agents) rarely talk about but often happens. With the ever increasing use of social media – 6 degrees of separation has now become 3, everyone knows everyone and getting access to a large group of people through your own network has never been easier. Call, email or Facebook some of your friends to find potential buyers for your property. For those who don’t have the time or are not based in Phuket, using a local agent is the next best port of call.
Finding the right property agent
The old adage ‘you need to kiss a lot of frogs before you find your prince’ is true to real estate as well. A huge challenge in selling property is finding a real estate agent that can actually deliver.
Ideally, you want an agent who has a very good understanding of the Phuket property market, knows the sales processes and legalities (including tricky land ownership laws) and has access to enough marketing channels and serious buyers to put your Phuket property in a position to actually get sold.
Many agents tell an owner anything they need to in order to get the property listed for sale.
“Yes we should be able to get you that price”, “loads of properties are selling for that”, “the market is good right now”, “We have lots of buyers looking for your type of property”, “we can get this sold very quickly” – these are all common lines agents use to secure the listing.
Make sure you do your research first; get online – look at local Phuket property portals, the top agencies’ and property developers’ websites to see what prices properties are being advertised for. Speak with your neighbors and other owners of property in the local area to find out what they think the value is, what their properties or their friends or even people they know have previously sold their properties for. How much interest they had when marketing similar properties, what type of rental incomes are possible and which agents they would recommend.
Questions you need to ask your agent(s)
How much should I sell my property for? Ensuring you have done your own research, the answer to this question will define the agent’s credibility and knowledge for you. If they come in way too high or low, ask them how they arrived at that figure. Remember it’s very hard to give an accurate valuation of a property without actually seeing it. Badly maintained properties can be worth millions (THB) less than well-maintained properties. Same with great furniture versus old furniture, new kitchens etc…
The right approach for agents would be to give you a realistic advertising range, to give room for accepting offers and negotiation. They should also suggest similar comparable properties that are available in the local area and point out both positives and negative features about them, and tell you about recent offers or sales that have taken place. Ultimately, they should take some time to gather accurate information before giving you a full valuation.
How much commission do you charge? Most Phuket based agencies charge a 5% + VAT commission based on the total selling price. This is typically built into the selling price and also to the offers given – so the seller pays it from the total purchase price. Ensure that the price you give to your agent includes this 5% as attempting to put this on top of the advertised price will likely deter buyers who enquire. In a co-broke scenario (where two agents work together to sell your property) this 5% is typically shared. If your agent is asking for a listing fee or extra commission for selling your property they should be able to justify this with a good reason.
How to motivate agents to sell your property
Get personal! Whilst commission is of primary importance to sales people, successful real estate agents are usually very personable people who enjoy interacting with buyers and sellers. Invite them to view your property so they have a deeper connection to it and you. In most cases, no-one knows your property better than you do so show them every feature you have - make sure they know the product inside out and this knowledge and enthusiasm should be passed onto the potential purchaser.
What not to say to your agent
Any of following things is a big no no: “not that keen to sell.” or “not in a rush to sell.” or worst of all, “I’m not willing to negotiate on my price.” These types of statements will alienate your agent. As a seller who is motivated to sell, you must be willing to work with your agent in order to help them find you buyers and negotiate the best deal. Make their job easier and demonstrate you are flexible – this will almost always work in your favor.
How to make my property advertisement stand out
Price competitively. Even if you have extras. You may feel that an upgraded kitchen, bathroom or a bigger third or 4th bedroom than your neighbor warrants a higher selling price but pricing higher than your competition will do you no favors in attracting buyers. Keep in mind that the extra value of a property is not always obvious to a buyers from a website. A better strategy is to price competitively to attract buyers, then use the extras to show why your property is such good value in comparison to other similar properties on the market at that price. Don’t get caught up in delusions of grandeur. Just because other properties are listed for a particular price, does not mean that they will sell for it. Also, invest in professional pictures, 10,000 THB or so for a stunning portfolio is money well spent.
How to get offers
Ask the agent or buyer for an offer. “It seems you are very interested, what price would make this property attractive enough for you to consider buying it?” Invite offers, ask them to give you an offer, and be open to them – but avoid looking desperate. Feedback is great. Asking for offers and getting them is much better than not receiving them at all.
Going exclusive or using multiple agents
Giving a property exclusively to an agent means that they will typically invest a serious amount of time and effort into promoting it for you. This works in many other markets, and is starting to work here in Phuket too. There are advantages to choosing one good agent that can do all the leg-work for you such as contacting all the agents on your behalf to secure a quick sale. They usually know which agents and advertising channels are the best to work with.
This article was written by LivePhuket.com - For any questions you can contact (Brennan@livephuket.com), call the LivePhuket Office(+66 (0) 89 586 6734) or visit www.livephuket.com.