HOW QUICKLY CAN YOU RESELL A NEW PROPERTY?
Let’s assume that you have purchased a new property for investment purposes, or perhaps even a property in the construction phase. How quickly you can resell it depends on how fast you are in a hurry, because another parameter comes into play, namely the price.
What strategy do we recommend?
One of the best techniques in negotiation is to put something up for sale with a long deadline for the sale, i.e. to put something up for sale without being under pressure to sell quickly. By being relaxed about the time you have to sell, you have leverage over any buyer that comes along, especially if they try to negotiate your price or terms.
At The Concept, we prefer this strategy when we resell properties purchased in the various projects we manage.
We consider a new property to be any new property built and received within the last 5 years. We also include here the option of reselling the property as soon as it is ready, if you have pre-contracted it during the construction period.
How to use the fact that the property is new in the negotiation?
New buildings, compared to old buildings similar in area and quality of construction, will always be preferred by buyers, so you already have a stronger negotiating position than old buildings.
This will also give you the possibility to set a higher price for your property. How high? It depends on how quickly you want to sell.
If your price is similar or almost similar to that of old properties in similar areas, then you may have a chance to sell it easily within a month of preparing it and putting it up for sale.
If you start to raise the price, assume a longer term which can go up to 6-12 months depending on how much you want to maximise.
How to maximise your investment?
Bear in mind that if your property is empty and unrented, the longer you keep it, the more you lose the equivalent of rent over that period. So it would be desirable that the difference in your asking price covers at least the equivalent of the rent during the period you are waiting to resell it.
The ideal case is when you sell it as an investment asset, already rented out, with rent already accruing to you and immediately accruing to the new owner. If the future owner is an investor, they will appreciate this option.
Keep in mind that you make a profit when you buy, not when you sell.
Whichever option you choose, cheaper and faster or more expensive and harder, remember that the future profit in real estate is made when you buy. So you need to make your investment plan before you become the owner of that property. So look for excellent opportunities, in sought after and popular locations, close to amenities and transport infrastructure and buy at the right time.
An excellent option is to buy in the construction phase, off-plan, pre-sales or early stage, as it is called, where you will usually benefit from excellent opportunities.
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