Monday, August 25, 2008

How to Sell Property to Overseas Property Buyers

Selling property to overseas property buyers is not as straightforward as selling to local property buyers. Overseas buyers are in a state of disorientation and may feel vulnerable to malpractice. This results in overseas buyers being seemingly over cautious and on some occasions suspicious of the property agent. The real estate agent?s job is to reassure and inform and never over sell. Taking a deposit to hold that condo that is about to sell any moment now will undoubedtly result in a withdrawal later on.

Real estate agents release the pressure

Overseas buyers warm to real estate agents that do not create additional pressure. Buyers are under a lot of pressure. Many are apprehensive of being ripped off. They want to know that you are legitimate and for you to prove it. The golden rule is to inform inform and inform again. Information will help sell your properties to overseas buyers. Never over sell or create a climate of pressure, after all the buyer is already under stress.

Some things you should know

A real estate agent or developer who can give the impression of being knowledgeable about their locality and about the property in question is half way to gaining the confidence of the nervous overseas buyer. Information that you may not think relevant such as visa applications , importation costs, taxation, mortgage process, building insurance, local taxes, the buying process in your country are to name but a few.

Develop your powers of empathy.

Real estate agents selling property to buyers from abroad need to have the power of empathy. Ask yourself what I would feel like buying a property in a foreign land. How would I recognise a good agent and a good deal? What information would I want my agent to know?

Selling off plan or pre construction property

Real estate agents selling a new property to an overseas buyer should be prepared to answer these typical questions.

1. What guarantees do I have that the developer for this new property will not go under?

2. Will my deposit be placed in an Escrow account?

3. Tell me about the building company, what work have they done in the past

4. Has the builder secured planning permission and local permissions for the project?

5. Are there any legal safeguards for foreign investors in the case of non-completion or poor construction work by the developer?

6. If I decided to sell before completion of the project, would that be possible and would I be penalized in anyway?

7. How easy is it to buy and sell property in this country?

8. What if I decide to sell the property?

9. Are there any other fees while the project is being built and what about after completion?

10. What do you anticipate the rental income to be once the facility opens based on current rates at similar properties?

11. What is the payment schedule?

12. What happens if the building is delayed?

13. What is the rental yield I can expect?

14. What are the tax and inheritance implications?

15. What is the buying process in this country?

Selling property to overseas buyers a road to success

Selling property to overseas buyers can be very challenging but rewarding experience. The agent that holds the buyers hand throughout the process will undoubtedly be the agent that successfully sells to the overseas buyer.

Copyright 2006 Nicholas Marr

The author Nicholas Marr is a lifetime property investor and CEO of Marr International Ltd. His company is responsible for one of Europe's fastest growing overseas property web sites at http://www.homesgogast.com

No comments: