1. Reaching a small number of interested parties
I often see sellers primarily approaching friends, neighbours and family with the idea that they will only go ahead with a full sale if the sale fails. Often the sale will be at a significantly lower price than the fair market price. Separate the sale and find out what the real market price is first.
Find a partner who is strong in the industry and will get your property to a large number of relevant buyers.
2. Let the kids sell it
This is a terribly sensitive point and seemingly doesn't quite belong here, but I have seen many families where after the death of a parent(s) the heirs were unable to agree on the division of property or the sale/holding of property.
This often caused them to be irreversibly torn apart.
Ideally address the division of assets up front, either by will or by selling the house and dividing the shares. Good relationships are priceless.
3. First impression
The first impression sells before we even get to the returns in Excel.
Try looking at your property as a potential buyer.
Physical property:
▪️ Thorough cleaning inside and out, incl. garden, sidewalk,
▪️ painted walls,
▪️ facade,
▪️ placement of dumpsters away from the building.
Documents:
When the house is sold, a so-called dataroom is being prepared, which a potential serious buyer can enter after signing a confidentiality agreement. Have key documents ready in advance:
▪️ revisions,
▪️ floor plans, title deeds,
▪️ tenant agreements,
▪️ spreadsheet with revenue and summary of basic data (sales, validity of leases),
▪️ table of floor plans.
This is just a basic penzum of information so I don't scare you with a multi-page list of requirements for a legal audit.
4. Determining the market price
The property has the greatest potential when initially offered.
I have elaborated on this topic in this article here.
Proper pricing is absolutely key and can greatly affect the sale price. If you come out with a price that is out of line with market realities, the property will not sell, but it will have already 'fizzled' in the market and you will end up selling at a significantly lower price. If you are not sure what the right price is, find a broker who is dedicated to the segment or look up sale prices - but those from completed sales, houses from public listings are often out of reality.
5. Incorrect time of sale
Properties sell all the time, but it is strategic not to sell your house before or during the summer holidays or before the Christmas holidays.
These are typically times when investors are not very active.
6. Inexperience in negotiations
If you don't enjoy haggling over price and want to make the sale a little more difficult, choose a quality broker with a proven track record and a good track record.
A good broker will filter out most of the hustle and bustle, the non-bona fide buyers and real estate tourists. He or she will also box out good contract terms and prepare contract documents with a quality attorney.
7. Other potential of the property
Every real estate investor is counting on, and today, with higher interest rates, even more... Think about the additional potential of your house and increase your sales to the maximum.
If you are unable to implement the changes below, often just calculating future profits alone will help to improve the sale.
Options for increasing sales / property value:
▪️ rent increases,
▪️ splitting the space into smaller ones,
▪️ renting to a different segment of clients, e.g. short-term stays instead of long-term stays, students, etc. Each house may ,,economically suit a different clientele'',
▪️ completion of a house, courtyard, whether it is an idea, an architectural study, or obtaining a building permit,
▪️ the potential to sell off in units,
▪️ re-development for another purpose.
Jan Halíř
Specialist in private sales of commercial real estate in Prague, especially apartment houses, hotels and building plots. He is distinguished by a discreet approach without public advertising and personal negotiations with clients.
With many years of experience in the industry, he has completed deals worth billions of crowns. Unlike large real estate agencies, he deals with each sale personally, which allows him to provide a personalised approach.
Thanks to his excellent knowledge of the Prague market and direct contacts with property owners, he is able to negotiate effectively and maximize prices for sellers.
