BE ZONE
CONSCIOUS
If you don’t keep up with zoning
development and control in your city by the local planning authority, you could
be selling your house just before zoning adjustments are being implemented.
These zoning adjustments could considerably increase the value of your
property. Haste makes waste, they say. So keep your eyes and ears tuned to city
changes that could enhance (or affect) your position as a seller.
Pricing too high? Too low?
High and low pricing:
sellers who like to make a killing price their property way too high, making
it out of reach to buyers
who are looking at similar properties in the same location. Don't be priced
out. Going to the other end of the spectrum, you'll know that you priced your
house too low when it's bought the same or next day after you or your agent
advertised it. It was “snatched” by someone else because it was way below
market price.
Obviously, you as seller
will try to get the highest price you can get for your property so you start
with a high price.
The buyer, on the other
hand, will offer the lowest possible price he can negotiate. So you start high
and he starts low. This creates plenty of room to negotiate - the gloomy area
that lies between the highest and lowest prices.
This is where sellers can
make the mistake of not demonstrating sufficient flexibility to the buyer!
This is the reason there
are high and low prices in real estate - what Albert Lowry called practicing
the give-and-take principle. “Such give-and-take is part of the bargaining
process…It
gives you both room to
negotiate…As you and the buyer make proposals and counterproposals,
you are inching closer to
agreement…Then at some point one of you will yield no further.”
Develop the extra sense to know when to stop negotiating.
LEASING
INSTEAD OF SELLING
Lease with option to buy:
a lease option has a longer term than a straight option, usually running for as
long as one year or longer. Some will even extend to three years, depending on the
desire of the seller. While your lease is ongoing, you can rent out the
property and be in a positive cash flow. The second advantage is, the property
is appreciating in value. If you have a long lease option, you can then sell
the property for the highest price you can obtain.
One last method for hot
picks: be on the alert for long leases. Long leases will ensure that a property
will be rented or leased for long periods of time, not just a year. Some
commercial leases for example go for as long as 5 or 10 years. One example is
the government. Take post
offices as the best
illustration. The government will usually rent space for post offices on a long
term basis. If the property you are eyeing has government outlets like the post
office, government agencies e.t.c these buildings qualify as hot property!
Location!
You've heard about the
three principal parameters in real estate? One - location, two - location, and
three - location. Take that with a capital “L”. One trick in looking for that
pot of gold at the end of the rainbow is to buy the worst property in the best
neighborhood, NOT the best property in the worst neighborhood.
This is a prime important rule that sophisticated inventors try
never to break.
For more information on how to sell property for profit, call me on 08104982099 or 07083834540.