2012 jun 4
Property Investment Tips
Part IV: 10 Tips for Selling
If you are selling your unit, it pays to pay (pay to pay??) attention to some pointers:
1. Agent or not
If you have the time and patience, by all means DIY. You will also need access to Option To Purchase, Offer to Purchase, Inventory List etc forms. Try to stick to standard formats, you can ask your lawyer for it. Do not act smart and come up with your own, as they may not readily hold in court should any mediation be required in future. Selling your own property actually is logical - who knows it better than yourself? Unique selling points, amenities, the shortest route to MRT, best times to use facilities, best food nearby, atm, gas station, etc, you will know better than any agent who is not also staying there. As to where to advertise it, you can either do an ad in Saturdays national paper classifieds, post in online classifieds websites, ask a question in property sites, make a post on social networking sites or even your own condo notice board (dont be surprised there will be neighbours who see the potential in the place and wants to buy another one for investment and lease out).
If you have no time and prefer not to make the acquaintance of prospective sellers, engage an agent. Pass them a set of essential keys (access card, main door, bedroom door) to show your unit any time. They should also prep your place up, ventilate the place and turn on AC *before* prospects arrive for viewing.
2. Ok agent, but exclusive or not?
This is really up to your comfort level and confidence. If you are sure your unit will be in hot demand, get an exclusive agent. As there might be many viewings before you find the best offer, it will greatly save your time dealing with too many agents. Otherwise, spread the message around on social network, post a question on property sites, post an ad in popular local classifieds and agents will greatly offer their service to market your unit. Pick the one whom you are most comfortable with (and i dont mean in terms of looks), great if they specialise in your condo/area as they will have built up a ready list of interested parties. If they already sold a few units in your development, even better.
3. Presenting your house
If things are falling apart, please get rid or fix them before any viewings. If a fresh coat of paint is needed, dont scrimp on that. The goal is to present an image that the place has been taken care of over the years and preloved. It is also a logical choice as the new owner will not want to bog himself down with whole suite of maintenance jobs the moment keys are taken over. However, dont overdo it and spend 50k on overhaul. It is meant to look used if it is resale and not a subsale. Unless you are sure with the 50k extra pumped in it can fetch you more than that extra on the sale price. There are people though, who buy houses and perform a total makeover and resell them for insane profits. You may or may not be one of them.
4. The viewing
Applicable if you are DIYing the sale. If not, you may also observe and check on how an agent new to you does it. Make sure place is thoroughly cleaned. No odd smells, no dust, no hairs, no animals in the house please! I know, i am an animal lover myself, but you dont want to shrink your prospective market size down a huge notch just because your dog was running around and (god forbid) licking the ankles of the potential buyers. Send them for sitting or put them up with family for a couple of hours if you are still living in the house.
The timing is also important. If you have west sun, never ever show the place during the afternoon hours until about 8pm. If the place of worship nearby starts broadcasting prayers or chants at certain hours of the day, or certain days of the week, you may want to avoid those. Same goes for noisy kids who 'attack' the pool at fixed times of the day, neighbours crazy dogs or kids who bark incessantly at certain hours, or sing karaoke every Sunday afternoon. You want to leave an impression of a peaceful home to the next buyer.
Always be punctual, and make sure your agent keeps to his appointments and not call to say oh sorry i am stuck in some other meeting, can you show the place yourself!
5. Closing
Try not to show the place yourself if you are not DIYing as emotional attachments and egos will be painful when prospective buyers comment on this and that. Note also that buyers will definitely be sparse with compliments and generous with criticism in order to not show their interest and to set the stage for bargaining down the asking price later.
Be firm on your asking price, if you are sure it is a fair one. Also dont let your agent sway you into a bidding war between prospect A and possibly an imaginary prospect B. Always make sure an Offer to Purchase is obtained along with a cheque. You or your agent will then issue the Option to Purchase back to the buyer or his representative agent. This gives him 14 days to decide whether to Exercise that option by way of his lawyer. Before this, get ready your preferred lawyer, firm name and address details. If you dont have one, either ask your agent to recommend or refer back to the same firm who handled your purchase after checking the necessary fees payable. Average range is from $1500-2500 for a sale case. Your lawyer will also inform the bank of your intention to redeem the loan, if there is one outstanding. Note some banks may penalise you for failing to inform at least 3 months before date of sale completion. For such cases, make sure to place 12 weeks for option exercise period to be safe.
6. Interim before Hand Over
You still have a good 10-12 weeks before you hand over the keys to your lawyer for comveyancing thru the buyers lawyers. What do you do with it if you already have a place to stay and moved on? If your buyer is in urgent need to move out from their present abode, you could earn a bit more moolah and ask your agent to check if they are interested to move in first and pay rent (discount a bit la to entice them) for the 3 months prior to officially taking over the unit. If not, check if short term lease is allowed by the MCST and lease to somebody respectable.
7. Changing Address
Banks, insurance, telecom, HR, Ikea membership, country club membership, MCST (of other properties you have), lawyers... Make sure you have all covered before you move. It is also a polite gesture to avoid your mails clogging up the future owners mailbox, whether spam or not.
8. The Hand Over
Again, make sure all items listed in inventory as promised are there in good condition or as is depending on what is agreed. Ensure place is clean, all electricity turned off (not necessary to terminate the utilities if you moving out the day before buyer takes over, as it will be automatic when new account opened for your premise). Check that you have updated SP Services of your new mailing address so they know where to send the cheque for the deposit placed to you.
Also, leave all the warranty and instruction manuals of the appliances that are staying. Dont forget the house rules booklets and if you are not the sentimental kind, include the glossy brochure that sold you this beautiful home of yours in the first place, as a nice gesture to the future owner.
Once done, shut and secure/lock all windows and balcony/doors and leave with the full set of keys/cards etc, preferably in the same holder/folder you got when presented the unit by the developer's rep.
9. Sales proceeds
Ensure all the cashiers orders are made out to you correctly spelling your name and presented to you before you hand over the keys to your lawyer. You may also be presented with the old title deeds which you may choose to keep or dispose later. Check all statements are correct, like bank redemption, penalties and clawback if any, and have the lawyer give you a breakdown of all costs. This will help greatly in future for tax reporting.
10. Be happy and proud
Be a proud seller of your property knowing the new owner will be delighted to take over your beautifully preloved and maintained home!
Ps: Faster go to bank and cash in the cashiers orders lah!!!
Property Investment Tips
Part IV: 10 Tips for Selling
If you are selling your unit, it pays to pay (pay to pay??) attention to some pointers:
1. Agent or not
If you have the time and patience, by all means DIY. You will also need access to Option To Purchase, Offer to Purchase, Inventory List etc forms. Try to stick to standard formats, you can ask your lawyer for it. Do not act smart and come up with your own, as they may not readily hold in court should any mediation be required in future. Selling your own property actually is logical - who knows it better than yourself? Unique selling points, amenities, the shortest route to MRT, best times to use facilities, best food nearby, atm, gas station, etc, you will know better than any agent who is not also staying there. As to where to advertise it, you can either do an ad in Saturdays national paper classifieds, post in online classifieds websites, ask a question in property sites, make a post on social networking sites or even your own condo notice board (dont be surprised there will be neighbours who see the potential in the place and wants to buy another one for investment and lease out).
If you have no time and prefer not to make the acquaintance of prospective sellers, engage an agent. Pass them a set of essential keys (access card, main door, bedroom door) to show your unit any time. They should also prep your place up, ventilate the place and turn on AC *before* prospects arrive for viewing.
2. Ok agent, but exclusive or not?
This is really up to your comfort level and confidence. If you are sure your unit will be in hot demand, get an exclusive agent. As there might be many viewings before you find the best offer, it will greatly save your time dealing with too many agents. Otherwise, spread the message around on social network, post a question on property sites, post an ad in popular local classifieds and agents will greatly offer their service to market your unit. Pick the one whom you are most comfortable with (and i dont mean in terms of looks), great if they specialise in your condo/area as they will have built up a ready list of interested parties. If they already sold a few units in your development, even better.
3. Presenting your house
If things are falling apart, please get rid or fix them before any viewings. If a fresh coat of paint is needed, dont scrimp on that. The goal is to present an image that the place has been taken care of over the years and preloved. It is also a logical choice as the new owner will not want to bog himself down with whole suite of maintenance jobs the moment keys are taken over. However, dont overdo it and spend 50k on overhaul. It is meant to look used if it is resale and not a subsale. Unless you are sure with the 50k extra pumped in it can fetch you more than that extra on the sale price. There are people though, who buy houses and perform a total makeover and resell them for insane profits. You may or may not be one of them.
4. The viewing
Applicable if you are DIYing the sale. If not, you may also observe and check on how an agent new to you does it. Make sure place is thoroughly cleaned. No odd smells, no dust, no hairs, no animals in the house please! I know, i am an animal lover myself, but you dont want to shrink your prospective market size down a huge notch just because your dog was running around and (god forbid) licking the ankles of the potential buyers. Send them for sitting or put them up with family for a couple of hours if you are still living in the house.
The timing is also important. If you have west sun, never ever show the place during the afternoon hours until about 8pm. If the place of worship nearby starts broadcasting prayers or chants at certain hours of the day, or certain days of the week, you may want to avoid those. Same goes for noisy kids who 'attack' the pool at fixed times of the day, neighbours crazy dogs or kids who bark incessantly at certain hours, or sing karaoke every Sunday afternoon. You want to leave an impression of a peaceful home to the next buyer.
Always be punctual, and make sure your agent keeps to his appointments and not call to say oh sorry i am stuck in some other meeting, can you show the place yourself!
5. Closing
Try not to show the place yourself if you are not DIYing as emotional attachments and egos will be painful when prospective buyers comment on this and that. Note also that buyers will definitely be sparse with compliments and generous with criticism in order to not show their interest and to set the stage for bargaining down the asking price later.
Be firm on your asking price, if you are sure it is a fair one. Also dont let your agent sway you into a bidding war between prospect A and possibly an imaginary prospect B. Always make sure an Offer to Purchase is obtained along with a cheque. You or your agent will then issue the Option to Purchase back to the buyer or his representative agent. This gives him 14 days to decide whether to Exercise that option by way of his lawyer. Before this, get ready your preferred lawyer, firm name and address details. If you dont have one, either ask your agent to recommend or refer back to the same firm who handled your purchase after checking the necessary fees payable. Average range is from $1500-2500 for a sale case. Your lawyer will also inform the bank of your intention to redeem the loan, if there is one outstanding. Note some banks may penalise you for failing to inform at least 3 months before date of sale completion. For such cases, make sure to place 12 weeks for option exercise period to be safe.
6. Interim before Hand Over
You still have a good 10-12 weeks before you hand over the keys to your lawyer for comveyancing thru the buyers lawyers. What do you do with it if you already have a place to stay and moved on? If your buyer is in urgent need to move out from their present abode, you could earn a bit more moolah and ask your agent to check if they are interested to move in first and pay rent (discount a bit la to entice them) for the 3 months prior to officially taking over the unit. If not, check if short term lease is allowed by the MCST and lease to somebody respectable.
7. Changing Address
Banks, insurance, telecom, HR, Ikea membership, country club membership, MCST (of other properties you have), lawyers... Make sure you have all covered before you move. It is also a polite gesture to avoid your mails clogging up the future owners mailbox, whether spam or not.
8. The Hand Over
Again, make sure all items listed in inventory as promised are there in good condition or as is depending on what is agreed. Ensure place is clean, all electricity turned off (not necessary to terminate the utilities if you moving out the day before buyer takes over, as it will be automatic when new account opened for your premise). Check that you have updated SP Services of your new mailing address so they know where to send the cheque for the deposit placed to you.
Also, leave all the warranty and instruction manuals of the appliances that are staying. Dont forget the house rules booklets and if you are not the sentimental kind, include the glossy brochure that sold you this beautiful home of yours in the first place, as a nice gesture to the future owner.
Once done, shut and secure/lock all windows and balcony/doors and leave with the full set of keys/cards etc, preferably in the same holder/folder you got when presented the unit by the developer's rep.
9. Sales proceeds
Ensure all the cashiers orders are made out to you correctly spelling your name and presented to you before you hand over the keys to your lawyer. You may also be presented with the old title deeds which you may choose to keep or dispose later. Check all statements are correct, like bank redemption, penalties and clawback if any, and have the lawyer give you a breakdown of all costs. This will help greatly in future for tax reporting.
10. Be happy and proud
Be a proud seller of your property knowing the new owner will be delighted to take over your beautifully preloved and maintained home!
Ps: Faster go to bank and cash in the cashiers orders lah!!!
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