Without proper preparation, you can find yourself facing unwelcome surprises
While most people think that selling a property is easier than buying one, things are never that simple and there are several important factors to consider during the entire selling process.
Firstly, in the preparation stage, you need to decide what the starting selling price will be, as well as how much you are willing to drop the price of the property. That’s why it’s always a good idea to have your property professionally evaluated. You don’t want it priced too high, since you will inevitably see interest dwindle away, and you also don’t want to set the price too low and lose money. It is also better to forget about the “I’ll-price-it-high-to-have-room-to-haggle ” tactic. It never works and any serious buyer will just move on to the next property.
Another important factor to consider is the VAT rate on the property which can fall under several categories, depending on the ownership, usage and the property’s age. It is best to take care of this ahead of time by enquiring with an accountant or the VAT department.
After a viewing, interested buyers will most likely want to see all the relevant documents: title deeds, permits, plans, etc. You should have these documents prepared in advance, and they should be certified accordingly, so that buyers can have the desired peace of mind that they are dealing with a serious seller. For larger lots of land you should also prepare a brief about the area’s urban planning to properly inform interested buyers on the property’s development rights and any restrictions that are in place. It is always useful to provide additional information, like the percentage of building density, how many plots you can split the land into and restrictions imposed on the total building area. What is more, aerial photos taken by drones can be extremely helpful since they can showcase the lot’s location, including the surrounding area, from different angles. In case you are worried about the cost of renting a drone, we can assure you know that it’s not as expensive as you might think. Photos of a building’s interior space are equally important.
For putting the property on the market, our suggestion is to sign an exclusive mandate with a land broker. This will definitely motivate them to make the sale. Have in mind that when brokers do not have an exclusive contract to sell a property, their job becomes a lot more difficult since interested buyers will try to bypass them. At the same time, make sure your agent puts up “for sale” signs where the property is located, as well as in a few strategic spots that will direct interested buyers to the location. Advertising the property on dedicated portals, like InCyprusProperty and Bazaraki, always helps. What is more, even though we live in the digital era, it helps to prepare flyers that can be distributed to prospective buyers, like property developers, companies in the area, lawyers, accountants, etc.
Make sure to ask for written updates from your broker at regular intervals, with a detailed account of the number of actions they have taken, the prospective buyers they have talked with and the interest they noted. Depending on the response, you can adjust how you market the property or even lower the price if you realize that it puts off interested parties.
Finally, you should know beforehand how much tax you will have to pay so that you don’t face unwelcome surprises. On certain cases, you must also inform your bank, especially if the property has a mortgage, since you will probably need their permission before making the property available for sale.