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Thursday, 28 June 2012

HOW TO SELL PROPERTY IN A MONEYLESS MARKET?

How do you sell a property in a moneyless or illiquid market ? This is the million dollar question in the minds of those who want cash for their investments. But how can you possibly do it? In the past five years of my real estate career I have discovered an answer and that answer is the  needs-focused marketing strategy. This strategy works because the liquidity problem creats serious competition as market players wrestle for the little cash available, so in order to survive this struggle one should be as competitive as possible through sharpening the needs-focused strategy. I will define this strategy later but for now I shall start with simple but important basics you should know first.

 Simple  Basics  
These are basic activities a seller must go through in order to make selling possible. These are common sense issues you may also think about even without professional advice. But you will be surprised to know about how many sales deals that fail  to go through only because of sellers failing to do the simple basics hence I have to begin with these.



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Contractual  Capacity  Of  Seller 
This refers to your legal right to sell the property. Your legal right to sell inevitably involves your legal right to the property. Its either you have legal  right to the property or someone has temporarily transfered to you their legal right to property through a power of attorney.  Legal advice is needed here and sales cases in which your contractual capacity should get particular assessment are; selling on behalf of someone, deseased estates, properties owned by minors, co-owned properties in marriages, properties owned by a company e.t.c . You are welcome to send inquiries about these and other relevant cases.

Decision To Sale
 After realizing your need for cash you should make a concrete decision to do it. That is to sell ! Some sellers are reputed for changing goal posts and this is costly if is done after signing agreements of sale. In normal contracts aggrieved parties can claim damages  when desputes arises.

Property Valuation 
An open market valuation should be done to determine the right price. This is critical because the property is not over or under priced. If its underpriced you will be shortchanged. If overpriced it stays too long in the market and the reason to sale may eventually fall victim of events. I will discuss more about open market valuation later.

Selling Agent
 This is the key person pertaining everything ranging from determining the price to signing agreements of sale. You can do it yourself or mandate an estate agent like me to do it. I advise  mandating an agent not because am one but due to these reasons: 1) A professional brings a professional touch to this important undertaking. 2) Selling immovable property has diverse legal and commercial implications this takes a lot of time that must be used elsewhere. 3 )The pressure on a layman can be too much and possibly can knock him down. 4) An estate agent's education involves courses in critical areas like valuation, law, taxation,  economics, building construction and this brings about synergies that enable him to deliver unparalleled effectiveness. Now having taken the primary step lets consider the needs-focused marketing strategy.

Needs-Focused Marketing Strategy 
 This is a marketing approach that position certain goods or services as solutions to society's needs and problems. People buy real estate and other products not without a reason hence the statement, 'whats in it for me ?' For property some of these reasons are the need for shelter, good investment and even prestige. Therefore, all aspects of property marketing must be need-focused and should endevour to show the purchasers that there is SOMETHING FOR THEM in the property.

Open Market Valuation
So as the selling agent pursue the needs-focused  agenda the determination of price as the first and one of critical steps should be done in the same spirit. The selling agent will determine the value of subject property by ascertaining at what price are similar properties being purchased in the open market. Similar in terms of location and features like number of bedrooms.  An open market is one in which the property is exposed to the public as far as possible, both the buyer and seller being well informed, willing and able to contract. The price that is realized will be fair, no suspicion of shortchanging anyone. This will be a win win kind of situation in which all parties are happy at the end of the day.

Value Addition 
In the selling process the seller may strive to increase the amount of the return possible and one of the ways for realizing this is value addition. Value addition also in order to make business sense it should connect with society's needs or problems. It must be in line with our winning formular the needs-focused strategy. The need for shelter is one of the things that the concept of value addition can endevour to satisfy. To do this a property owner can build a new structure or make an existing one more luxurious through renovations.

Exposure To The Open Market  
This is noteworthy because if the property is not exposed to the open market as much as possible then all aggressive efforts herein presented will be reduced to naught. In this era serious selling efforts are distinguished by marketing property in both print and electronic media. Furthermore, a good selling agent deploys persuasive advertising tactics and must assess the effectiveness of the media by measuring the quality and quantity of human taffic attracted.

Patience Pays  !
What makes the difference in life is the kind of attitude that one has on the important things they know or own. A vertue that we all know and own about which we need to have the right attitude is patience. One should have patience with the tactics discussed namely the needs-focused strategy and the selling agent who executes them. At the right time the property is sold!


HERE IS ANOTHER INTERESTING TOPIC

Gold And Real Estate Compared! Read On See The Better Investment !


 Rarity, durability and scarcity are some factors that have made gold and real estate the most sought-after forms of investments in the world. As a result gold has been used by many governments as a type of legal tender or money. Real estate has also been used by many to lock up capital for a life time. But which of the two is a better investment ?  READ THE FULL POST HERE http://propertymattersnews.blogspot.com/2012/12/gold-and-real-estate-compared-read-on.html .












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5 comments:

  1. I found so much interesting information on your blog and I had a great time to read this info. There's a lot of important ideas here that we can use on selling a properties. Thanks for sharing it.

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  2. Am glad to receive your comment, seeing that you are in property development hope to learn also from you about this important area.

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  3. Glad bt i wish you can sent me updates of hses and stand when u have latest ones,i prefer the ones i can pay deposit from 50-70%;then balance later

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    1. Thats fine and i also advise that you join this site because this will be helpful in that once a new property is posted you receive automatic notification.

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  4. This is a good common sense Blog. Very helpful to one who is just finding the resources about this part. It will certainly help educate me. Such a nice post and information for your post. I am so glad to read it and thanks for sharing to wonderful post...

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