Fundamentals of Buying and selling property

Fundamentals of Buying and selling property

Buying and selling property is not easy, you have to go by the NOW factor. What exactly is this NOW factor? Real estate prices are highly volatile and subject to wild fluctuations. So if there is an economic depression or a severe natural calamity or a political upheaval in one corner of the globe, real estate prices can tumble at another. Hence the decision to buy and sell has to be made NOW based on current indices. You can never say what will happen tomorrow.

However, when you are buying and selling a property, following a few fundamentals will help you from incurring losses. Further, a lot of will depend on the type of property you want to deal in. For example, the steps to follow for buying a commercial property for setting up a beauty clinic offering advanced treatments on IPL machine like hair removal and skin rejuvenation and HIFU face lifting will not be similar to what needs to be taken for buying a house. The basics of buying and selling are totally different and hence they will be treated as a separate entity here.

Buying Property

It is crucial to make sure that you have got the numbers right to avoid being in the red. Work out your expected rental returns based on such aspects as rental yield and body corporate fees and rates. Focus on the location of the property and its proximity to schools, shops and public transport. It should appeal to a wide spectrum of potential tenants from couples, to singles and retirees. Do not hesitate to invest in property in the suburbs if the area has proposed development plans by the local council. Go for it as there will be an appreciation in property value in the future.

Look for features that will add value to your property by attracting tenants quickly. A lock-up garage or a second bathroom or approved plans for expansion are some of them. Open spaces will draw in people who love to entertain outdoors. Finally, the potential for good rental income is what matters in the long run. Explore the neighbourhood for vacancy rates. A vacant property is a constant drain on resources.

Selling Property

At the core of selling property is how well you can advertise and promote it. The first step is to take some great looking and attractive pictures and videos of your property. It is an integral part of the listing. Spend a few hundred dollars if necessary to get a professional photographer to be on the job. After all you will be getting thousands of dollars after you sell. This is very crucial for high end properties.

A listing that catches the eye and makes a potential buyer click on the link starts with a good headline, something that will make investors want to know more. And once they come to the descriptive part, they should have all the information that they can possibly want. Give details of the property and other things that you might want to highlight – new furnace, big open deck, fenced in backyard and list of appliances for example.

Finally, price it just right. Understand prevailing property prices in the neighbourhood and go 10 to 20 percent below that if you want to sell quickly. Remember in general, people are wary of paying the right and exact price; they want the perceived value to exceed what they are paying so that they can be happy that they are getting a good deal.

Get all these fundamentals in place and you can be sure of hitting bull’s eye when you buy or sell property.