Tips for Selling property quickly at a great price in Ghana

In Ghana, if your land or building has been on the market for more than 144 days without a buyer or a tenant, there is something you certainly are not doing right. Struggling to sell or let your property may be due to some common mistakes property owners do. Either your property is not properly promoted or your asking price is un-realistic. It may also be due to the fact that buyers aren't being given the best first impression and so they do not realize your property's potential or that it is a wrong time to sell. This chapter discusses how you can reduce the chances of potential buyers pulling out.

Selling or letting your property can be challenging. However, with little preparation, your property can go quickly and at a premium open market price. Selling your property requires good preparation. The preparation involves giving your property the best first impression, having a realistic price, timing the market and effectively promoting the property. If you have received many calls about your property or your property has had a decent amount of viewings but no offers, there might be a problem with the way it has been presented. Preparing a property for the market involves a process known as Home Staging. Home staging is the act of preparing a private residence for sale or let in the real estate marketplace. The goal of staging is to make a home appealing to the highest number of potential buyers thereby selling the property quicker and at the best possible price.

A staged home is a home that sells more quickly. Experience has shown that, 50% of staged homes sell within two months compared to the national average of 144 days on the market. Most properties that I have staged have sold within five weeks. For furnished homes, I use what is in the home and just move them around, costing the property owner nothing really. For example, if furniture is rightly placed, the painting and decoration are pleasing to the eye and the home is free of litter, your property should go quickly provided the other tips have been taken. In fact, by simply placing furniture in the right place to give the impression of a spacious living room with a welcoming feel, you can easily sell your home. A well- staged property speaks volumes to potential buyers and gives that move-in feel most home buyers want. The amount involved in staging a home varies depending on the size of the property. It costs between GHC1,500 and GHC5,000 to stage a furnished residential property and between GH68,000 and GHC15,000 for a vacant one. Home staging is an investment and should be considered by anyone looking to sell property fast and at a premium price. In fact, investment in staging your property is lesser than your first price reduction in the bargaining process with a buyer.

Home staging highlights the strengths of your property and downplays the weaknesses to appeal to the greatest pool of prospective buyers. Remember that, opportunity comes but once! You only get one chance to make a good first your biggest investment and given the current property market, there are options impression and a first impression is a lasting impression. Your property is probably for buyers and so you must make your property stand out above the competition and do everything within your power to attract the highest possible return. It is therefore, very important to make your property ready to be viewed in the best possible condition. If you are still in occupation of your property whilst it is on the market, make sure it is always available for viewing and is presentable. If your daily routine makes it impossible to accompany every prospective buyer, give your estate agent a set of the keys.

TIPS

Make sure the exterior of your property looks good. Trim hedges and keep the walkway clear. Boost the appeal with a few flower pots at your front door. This can make a huge difference.

Throughout the viewing process, keep the conversation flows going. Avoid viewers bumping into obstacles such as furniture as they sight see your property.

Clean and dust everything inside. Consider hiring a cleaning service to do a thorough job. Pay attention to smells. Repaint all walls in neutral colors and keep the decoration simple.

Get rid of personal items. If you are still in occupation, try to keep them away. A buyer wants to be able to envision himself in your home, so remove anything overly personal, like family photos on the curtain holder.

Let there be light, so open all the windows to let in natural light. Add floor lamps to brighten up areas that are dim. The trick is that, a bright chirpy room looks larger and more inviting.

Bring nature inside. If possible, get a few potted plants to bring energy into the space. Make sure the plants are fresh and in good health.

Don't keep overly large furniture. They make the space look smaller than it really is.

Storage space is a huge selling point. Help viewers see the potential of your property. Let them believe that they will have enough space for their belongings if they were to take the property.

Give each room in the property a purpose. It could be a guest room, a mini office, craft room or laundry. Turn the shower room into a mini spa. Create the sense of relaxation. Be sure that, the toilet is neat and tidy. Keep it closed until the buyer wants to see it. This is a trade secret. You will be surprised the difference this trick can make to landing a buyer. You should turn your living room into a conversation epicenter by helping buyers imagine themselves relaxing with their family. To achieve this feel, group furniture into a pattern that inspires tête-à-tête.

Point to note: The objective of every property owner is to make the most money from his property within the shortest possible time. A recent survey found that, the return on investment from staging a home is over 200%. It therefore makes a lot of sense to home stage.

1. Price the property correctly from the start.

If your property has been on the market for more than 144 days without a buyer, it could be that your asking price is un-realistic. Remember that, price points are crucial psychological triggers for every buyer. Fifty thousand Ghana cedis (50,000ghc) in the right direction can immediately spark interest and make the buyer feel a purchase is a good deal.

There is a general shortage of housing in Ghana. However, this is not true for all types of property. For example, there are hundreds of high-end properties currently sitting within Cantonments, Airport, Ridge, and East Legon residential areas among others, waiting for buyers. Such properties are in a buyer's market. This means that supply of such properties has far outstripped demand, implying that the market is currently saturated with property choices and the power is now rests in the hands of buyers. With this type of property, a valuation that is too high can badly affect sales.

It is important to engage a Ghana Institution of Surveyors (GhIS)'s approved valuer to appraise and advice on value and on the best asking price. Approved valuers have been trained to be honest with their clients. In spite of this, do not disclose how much you want for your property until the valuer has completed his appraisal and done his presentation. Normally produced as a report, a property valuation includes property information such as size of the land or building, root of title,physical details on construction, condition of the dwelling, and information on comparative sales in the area. The valuation report will enable you understand the difference between price and value. Price is what you receive from the buyer. Value is what your property is worth and can only be accurately assessed by an approved valuer. The list of approved valuers in Ghana can be obtained from the Ghana Institution of Surveyors via ghisonline.org@gmail.com. Often times, personal attachment to your property can cloud your judgment. An independent valuation can prevent unrealistic pricing and provide a good idea as to the rate you can accurately expect your property to sell.

In a stagnant, cash strapped or depressed market as we currently have, pricing is extremely important and sensitive, because it can deter interested buyers from coming forward. Essentially, if your property has been on the market for some time, the dynamics of the property market may have changed and your asking price might have become unrealistic and no longer tenable. Under such circumstances, it is vital to re-value the property and market the property to correspond to the prevailing market realities. When it becomes

necessary to lower your price, do it. Alternatively, take the property off the market. What is the point in clinging on to a dream price for your property if that will lead to the property sitting on the market forever?

Of course, it is sometimes prudent to take your property off the market for a while. Your valuer or estate agent will advise you when it is necessary to do that. In fact, three signals are sent out if you keep your land or building on the market for a long time without a break. 50% of potential buyers will make a mental note of your property to avoid it, afraid something is not right, 60% of potential buyers will begin to use its time on the market as a negotiation tool, by trying to capitalize on your desperation for a lower offer. Some buyers will even be bold to tell you to be happy about any offer they make. 25% of potential buyers will brown your property altogether because they have heard about it over and over again, and are fed-up. In Ghana, 144 days is the tipping point to re-appraise your strategy and your agent will advise you accordingly.

2. Promote your property

If your property has been sitting on the market for more than 144 days, then you probably are not promoting it enough. It could mean that, your estate agent is not working hard enough. It is important to face the fact that you cannot do everything yourself. It makes a lot of sense to outsource the things that others can do and do better. This will enable you focus on other tasks. So, engage an estate agent to promote your property.

It is important to decide the number of agents you want to use. Generally, there are two options. Sole-agency or multi-agency. A sole agency agreement is when you instruct one agent to sell your property over an agreed period of usually 12 weeks. Within that term, you should not change from or direct other agents because you may end up paying more than one commission. In a multi-agency setting however, there are no restrictions as to how many agents you can instruct and there is no fixed term. You will be obliged to pay commission to only the agent who introduces the buyer who eventually contracts to buy or rent the property thing is that, both systems have their advantages and disadvantages. The commission rate for sole agents are much lower than with multi-agency but if you engage a bad sole agent, you don't have a choice but to stick with him for the duration of the contract. Instructing too many agents can also send wrong signals. buyers will think you are desperate and eager to sell the property and will make low offers, thereby keeping your property even longer on the market. The trick is if you choose a sole agent, avoid getting tied to a long term agreement. Six to weeks is recommended. If after the term, you are satisfied with his service, you extend the term or renew it. Also, keep to a maximum of 3 agents if you decide use the multi-agency. In that case, engage agents from different parts of the city better and wider coverage.

3.Timing is important

Whilst it may seem irrelevant, putting your property on the market at the right me of the year can make or break a sale. Although buyers for property can be found all year round, certain times of the year can prove fruitful than others. From experience, December and January are usually not good times to put your property on the market in Ghana (as observed in a study involving Accra, Tema and Kumasi). The best months of the year are from June to August where there are more potential buyers. For example, parents feel comfortable putting their kids through the stress of moving homes around this time and so tend to buy when school is on vacation. The location of the property also has an impact on the best time to sell. If your property is a beach property located at Sogakope, Kokrobite,Kpone or Ada, it will be more appealing to buyers from April to September. Also, the market conditions can determine when you should sell. You should speak to a valuer or real estate agent who is an expert in timing the market.

Conclusion: From the foregone, it is obvious that the following are crucial in your preparation to sell your property: 1) timing, 2) presentation, 3) promotion, 4)pricing and 5) your method of sale. These make the difference between a standard price and a great price. It also makes the difference between a quick sale and a slow sale.

Source: Land, Property & Estate Management in Ghana by Gad Asorwoe Akwensivie