Selling your overseas property
Tuesday, 6 March 2007 12:00 AM
Thousands of Britons own an overseas home. It may be bought to be purely a good investment, or it might be a fun holiday home, but in most cases there is a good chance at some point the time will come to sell.
But what happens when it comes to cashing-in your investment? You may have done all the right research when it came to buying it, but is there a market out there to sell it? And what are the most important steps to take?
aboutproperty.co.uk has top tips from overseas property experts on selling your home that could help you get the best value from your investment.
How long to wait before selling?
"Investing in an overseas property should be for a minimum of two to five years in order for property markets to appreciate," suggested Justin Figgins, head of Rightmove Overseas.
"Reselling your property can be an unpredictable process so it is a good idea to have a long-term plan in place to ensure you get the full asking price for your property," he said.
Mr Figgins added owning property in a country with a strong currency and flourishing tourist industry is a big bonus if investors are looking for quick returns.
When to sell
"There are definitely certain times of year which are best for selling your home and you should consider when your property looks at its best," recommended Quest Bulgaria, a leading specialist magazine for Bulgarian property.
Overseas property owners are advised to think about when most potential buyers will be travelling to the country, or at key times when people are thinking about holidays.
"January and February can be a key time for people to start planning their holidays and viewing trips so don't be surprised if interest really starts to pick up then," Quest Bulgaria explained.
How to choose your estate agent
"Make sure that you find a reputable agent with a good track record, proven experience in selling property in your chosen location and a good knowledge of the country's laws and regulations," advised Rightmove's Justin Figgins.
"Where possible, it is always a good idea to visit the developers' past projects and talk to existing owners and tenants.
"If you don't have the time to do this yourself, I would suggest using an investment company or adviser."
Quest Bulgaria recommends contacting several estate agents before making a decision on who to go with.
Finding out about commission arrangements is also a must. For instance, in Bulgaria both seller and buyer usually contribute to the agent's commission.
Having an agent with offices in the UK may also be preferable, but sellers should note some agents do little more than sending 'leads' over to their overseas office.
Another top tip from Bulgarian property specialist is to go back to the agent you bought the property through if you were happy with the service in first place.
You may also want to put your overseas property on the market with more than one agent. If you do decide to do this there are some important considerations, says Quest Bulgaria.
"If deciding to use several agents, do tell them who you have appointed so that they are not only aware of this but do not tread on each other's toes.
"Ask the agents how long they believe it will take to sell your property. You could stipulate a time-frame with them for selling, at the end of which you can remove the property from their books if they have not made the sale."
Selling for the right price
Sellers should research the prices of similar properties in the same location, otherwise there is a chance of getting caught out by the estate agents' selling tactics, Quest Bulgaria advises.
These may involve under-valuing your property to get it sold quickly, or over-valuing to get you onto their books.
Know your buyer
Knowing who you think will want to buy your property is all important. Quest Bulgaria recommends asking yourself whether you are selling to an investor, a couple looking for a holiday home or a family looking to relocate.
You can then find out which estate agents are specialising in selling your type of property, and tailor the description, photos and the way you want your home to look during viewing for that type of buyer.
Tips to improve selling prospects
"Good photographs are a real must. Your property will be competing against others - on the internet, in estate agents windows etc, so really good attractive photos will increase your chance of standing out above the crowd and can generate many more enquiries," Quest Bulgaria advised.
"You can take photos even before your property is actually on the market, choosing the brightest days with good light to enhance the property. For indoor photos, get as much light into the room as possible by opening the windows and turning on the lights."
Providing all the right details about a property is also very important, Quest Bulgaria says.
"Lots of agents do not have full information about a property which is very frustrating and off-putting to a buyer. This is your chance to help the agent. Supply them with full details of your property; put yourself in the shoes of the buyer and imagine what you would want to know.
"Give them information about the current rates, electric bills, land plan with boundaries, invoices for works done, and so on together with plenty of pictures.
"If you have had any work done to the property get all the invoices and receipts for the works together so that the buyer is well informed. This is particularly valuable if you have had any major works done, such as a swimming pool installation, which is covered by a guarantee - which can then be passed on to the new owners."
The property experts also recommend staying in regular contact with the agent and calling them every two weeks so you can keep up to date on progress with enquiries, viewings and buyer feedback.
Basic tips to remember when selling your overseas home
Experts at European property specialists Property Secrets have come up with their top basic tips on reselling an overseas property.
"Make sure you get a good agent and incentivise them," explained Simon Tweddle, Property Secrets' head of research and analysis.
"Sell at the right time of year, e.g. not in the winter in some cold countries unless it's a ski resort.
"Be realistic with the price, and be willing to make a deal to get a sale."
Mr Tweddle also warns sellers not to forget the most basic tip when it comes to selling any property - keeping it clean and tidy.
