With this in mind, if you are thinking of selling your home as well, here are some important tips and advice to remember so you can maximize the value of your property.
1. Be savvy about your local market conditions
Are you selling during a buyer’s or seller’s market? This can dramatically affect how profitable your home sale will be. Other factors may also come into play, including location and the condition of the unit, but being aware of the type of market you’re in will help guide you significantly. ‘Days on Market’ (DOM) is a good indicator of how to determine if you’re in a buyer or seller market. Look at properties for sale similar to yours. If they are selling more rapidly than the average DOM, you can safely assume people are out there actively wanting to buy. Another important metric to look at is comparative appreciation. If flats similar to yours are showing a jump in price, it’s a pretty good bet that you can let your property go at a higher price. These are key factors to remember when you begin negotiations with a potential buyer.
2. Timing is crucial
When people tend to look for a new home to buy, they often do so in harmony with seasonal factors in mind. For example, late Spring is often a popular time for selling a home, especially to a family with children, because it allows the scheduling of the move to happen just as the kids are going on their summer holiday, which helps reduce family disruptions.
You yourself should also consider timing with respect to the amount of equity you have in your home so that a sale will cover your current mortgage and provide you with a profit.
3. Price Appropriately According to the Market
It goes without saying that if you put your home on the market at an exorbitant or unreasonable price, then you’ll most probably have to cut that price later on. In the end, it may take a longer period to sell and could affect whether or not buyers find your listing easily. Conventional logic holds that people in the market will grow sceptical about particular homes when they see a steady decline in the listed price. It’s a red flag that may indicate that the conditions of the home may be in doubt. This situation could have a damper effect on your negotiating power because the owner may be waiting for yet another discount.
4. Who is going to handle the sale?
While there are certainly those who wish to negotiate and conclude a sale directly with a prospective buyer, the most common and perhaps most effective way is to join forces with a registered professional real estate agent. The is no shortage of agent firms and talented staff in Hong Kong who can help guide you through all the latest updated procedures and laws so you can avoid potential pitfalls. Moreover, agents have an active and willing database of eager buyers which help make your home easier to sell.
Also, the major real estate firms in Hong Kong now have their own proprietary applications for computer and smartphone, like the recently launched one from OKAY.com. This a highly valuable tool for buyers (and for sellers) to get the chance to see your home and decide if they want to buy.
5. A little renovation could net larger profits!
There is no hard and fast rule with respect to renovations to a home before a sale. The impact of a renovation project will be largely dependent on current market conditions and the actual value of your existing home. Putting in a nice swimming pool or laying down top quality wood flooring will tend to reap greater profitability in more expensive homes while doing a kitchen remodelling job or adding a new bathroom will score more profits with lower-priced homes.
6. Understand the real bottom line with cost when selling a home
There are a great many ancillary costs involved when selling your home, so be aware of all the relevant charges. These include closing costs, government-related charges like stamp duties, plus possible solicitor’s fees and other costs. Of course, if you have concluded the deal through a real estate agency, you will need to pay a commission of up to 1% of your home’s value.
7. After you’ve agreed to an offer
Once you and a potential buyer agree on the details of the home transaction sale, make sure to draw up a sale and purchase agreement for mutual approval. Your real estate agent can help with this stage of the process as well. In some cases, you may want to hire a solicitor to examine the agreement to ensure that all the points are fully agreed upon and your interests are completely protected.
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If you still have questions related to selling your home, the Estate Agents Authority of Hong Kong has a valuable web page with a long list of frequently asked questions about selling and purchasing a home in Hong Kong. Please feel free to visit their site at:
https://www.eaa.org.hk/en-us/Consumer-Corner/Frequently-Asked-Questions
