How to sell foreign real estate with minimal losses?

How to organize the sale of your property abroad with minimal losses?

This question is answered by Elena Nevskaya, a client interaction specialist at the "Adrionika" agency. It is important to consider several key factors, including the date of purchase of the property and the country in which it is located.

Over the past five to six years, there has been a stable trend of declining housing prices in most European countries, fluctuating between 2-4% annually, and in some countries, this figure can be even more significant. Thus, if an investor bought property in 2008 or 2009 for around €200,000, it may be quite difficult to sell it today for more than €160,000-€170,000. In this regard, I would recommend postponing the sale for now.

The real estate market goes through various cycles and trends, and who knows, maybe in five or six years the price situation will improve.

The role of a qualified specialist

Marina Vasilieva, head of the foreign real estate department at "Advex. Real Estate," notes that the choicequalified specialistis a crucial moment for a successful sale. Trying to attract the right expert means getting qualified help in determining the key terms of the deal, such as the price.

A professional will be able to analyze current market trends and determine whether it is possible to sell the property at the desired price. Establishing the right price category is crucial, as it directly affects the success of the transaction.

Minimizing losses during sales

Yulia Titova, the CEO of the agency "Rentsale," claims that losses during a sale can be minimized if the property was purchased at a reasonable price and is located in a popular area. Often, it makes the most sense to sell real estate to neighbors who are interested in that particular space.

The market is filled with numerous offers, and therefore it is especially important for the seller to have interested buyers who are specifically looking for this location, whether they are relatives or close friends.

Favorable countries for selling

Which countries are currently better suited for selling, and which ones, on the contrary, may present challenges? Elena Nevskaya emphasizes that it is important to plan the purchase of real estate abroad not only based on personal preferences but also considering the potential for future resale. Interest from buyers also plays a significant role.

For example, if you purchased property in Spain, in places like Costa Blanca, or in Bulgaria, Turkey, or Egypt, it can be challenging to expect a quick and profitable sale. At the same time, a promising resale may occur in major cities like Paris and London, as well as in certain areas of the French Riviera and Monaco, where there is stable interest from buyers.

The main focus should be on the fact that before making any deal, it is essential to thoroughly analyze the market and be prepared for potential changes in its legislative and economic environment, which will help not only avoid losses but also increase profits from sales.

Analysis of the foreign real estate market

Marina Vasilieva points out that owners of foreign real estate who intend to sell their properties should carefully analyze their current losses and assess the potential future opportunities for their assets. In the context of a growing market, it may be advisable to postpone the sale.

The situation in the markets of Bulgaria and Montenegro

Currently, there is a large number of secondary housing available for sale in countries like Bulgaria and Montenegro. The most challenging to sell are standard apartments located in overcrowded residential areas, while unique and unconventional properties are in high demand across various countries.

Commercial real estate in Europe

For example, in Germany, finding quality commercial real estate has become a real challenge, as there is a very high demand for income-generating properties and hotels. Similar difficulties are observed in Hungary, and in the Czech Republic, especially in Prague, the competition for hotel and retail properties is quite intense.

Difficulties in selling real estate

Yulia Titova points out that it is possible to sell your property in any country, but currently, this process is particularly challenging in countries like Bulgaria and Spain. For owners who purchased apartments during the high price periods of 2007-2008, it may be difficult to find a buyer willing to pay the original amount.

Determining the value of secondary housing

What influences the determination of the market value of secondary housing? Elena Nevskaya notes that the fundamental factors are:

• location;
• condition of the housing
• quality;
• the presence of fresh repairs and furniture;
• price.

For example, if the owner bought an apartment for 300,000 euros and then invested another 100,000 euros in its renovation, he can expect to sell his property for 450,000 euros, taking into account the need to pay capital gains tax. In practice, however, this task may prove to be quite challenging.

Pricing recommendations

It is recommended to start with an initial price of 300,000 euros, as potential buyers will definitely take into account depreciation and the overall decline in market prices. Even if the property looks very appealing, most buyers may prefer a cheaper option that requires renovation.

General principles of pricing

Marina Vasilieva adds that the principles of pricing for secondary real estate abroad are very similar to those in Russia. The final price is determined based on factors such as:

• location
• current state;
• appearance;
• proposed use;
• likely income.

Yulia Titova emphasizes that the price of secondary housing is also influenced by market conditions in the country where the property is located, its location, size, as well as the view from the windows, including subjective factors such as the proximity of Russian or international schools and the infrastructure of the area.

Results

Ultimately, before making a decision to buy or sell real estate abroad, it is important to consider many factors in order to accurately assess the terms of the business deal and achieve the desired outcome.

How to correctly determine the value of a property for sale?

Elena Nevskaya emphasizes that market analysis is one of the key stages that cannot be ignored. The price must reflect the actual market situation and be adequate.

It is necessary to consider the possibility of discussing the price, which may fluctuate within the range of10-20%Additionally, the owner should remember how he negotiated when purchasing the property. He likely also tried to lower the price with the previous owner, expecting a similar approach from the new buyer.

It is obvious that with the proposed lower price, the property can be sold significantly faster. However, a natural question arises: how much are you willing to reduce your profit when closing the deal?

How is the price for secondary housing determined?

Marina Vasilieva adds that when dealing with secondary housing transactions, the price is often set according to the average market value. Using a realtor's services, it makes sense to conduct a small research study to find out which properties in a similar price category are for sale and how quickly they are selling.

The demand for housing is a crucial factor in price formation. If a seller intends to sell standard apartments, they should be prepared for active negotiations with potential buyers. In the case of selling unique or liquid properties, the price is determined by their specific features, which undoubtedly contributes to a successful sale.

Definition of seller's goals

Yulia Titova points out that much depends on the seller's goals. For example, if their objective is to quickly close a deal abroad with minimal losses, it makes sense to set the price below market value, especially if there is a genuine buyer.

This can significantly speed up the sales process.

Professionals for selling overseas real estate

What specialists should be involved in selling foreign real estate? Elena Nevskaya assures that to expedite the sale of your overseas property, it is advisable to contact several real estate agencies that actively operate in the desired region. Such agencies may include experts from:

• Russia
• China
• Countries of the Middle East
• Germany
• United Kingdom

When working with agents, it's important to discuss the terms of sale in advance, including the commission rate and any possible discounts. It's advisable to maintain the same conditions for all participants in the process to avoid misunderstandings and conflicts in the future.

The type of property and its impact on sales

Marina Vasilieva emphasizes that the type of property plays an important role. Usually, real estate companies handle the sales. You can reach out to the realtors who assisted you during your purchase, or to other reputable agencies that have sufficient experience and positive reviews.

The right choice of a real estate agency can significantly impact the success of a transaction. It is important to carefully select the specialists who will help you sell your property as profitably as possible, taking into account all market nuances and the specifics of each deal.

The question of real estate sales through a developer can only be advantageous in situations where the organization has a dedicated department responsible for selling secondary housing.

Today's recommendations suggest that you shouldn't rush to sell your property unless it's absolutely necessary. Before putting your property on the market, it would be very beneficial to spend some time on cosmetic repairs and thorough cleaning. This will allow you to present the space in the best possible light to both potential buyers and realtors, as visual perception and the opinions of professionals play a key role in the decision-making process regarding a purchase. If your property has any documentation issues, it's essential to resolve them before starting the sale to ensure the safety and integrity of the transaction.

It is also important to be prepared for the possibility that the financial gain from the sale may be less than the amount invested in the property 5-10 years ago. The process of selling real estate can take quite a long time, sometimes even up to three to five years, so owners should consider various alternative financing options in advance to address their issues.

Tips from Marina Vasilieva

Marina Vasilieva emphasizes that the first step is to find an experienced realtor who can accurately assess the value of your property considering the current market situation. This will help avoid overly high expectations and ensure proper promotion of your property. It is also important to take into account the periodic changes in the real estate market, which can vary by region. Additionally, it is crucial to prepare the home for sale by taking high-quality photographs.

• It is not recommended to post listings on multiple websites; it is much wiser to entrust the sale to a single professional real estate agency.
• Widespread advertising on various platforms can not only slow down the sales process but also negatively impact the reputation of your property, which may lead to a decrease in its value.
• It is also advisable to avoid signing long-term contracts with agencies; generally, six months will be sufficient, but only if one agency receives exclusive sales rights.

Tips from Yulia Titova

Yulia Titova emphasizes the importance of carefully considering whether now is the right time to sell and whether it's worth the risk, taking into account the costs of maintaining the property and taxes. The owner needs to adequately assess the potential losses from not selling the property within a year or two. This will help establish a reasonable level of discount that one should be prepared for in case of genuine interest from a buyer.

In addition, it is extremely important to carry out cosmetic repairs and a thorough cleaning before the showing. The first impressions made by the property during the viewing can be crucial. It is also necessary to ensure that there are high-quality photos to present your property, and if you are unable to do this yourself, it is better to use the services of professionals.

Conclusion

In conclusion of my analysis regarding the sale of foreign real estate, I have come to the conclusion that many factors play a key role in the realization of such assets. It is very important to remember that the real estate market is subject to cyclicality; therefore, before making a decision to sell, it is worth carefully assessing the current situation. Property prices vary significantly across different countries, and, as we can see, for example, in Europe, in recent years many investors may have faced losses.

Referral to specialists

I recommend reaching out to specialists in this field who can not only help you accurately assess your property but also advise you on how to effectively build a sales strategy to minimize potential losses. Professional agents have access to up-to-date market information and can offer you the most optimal conditions to reduce financial risks.

Location selection

It's also important to pay attention to the location of your property. Unique and atypical options always retain their value, especially in sought-after regions like London or Paris. In contrast, properties in less popular areas may be difficult to sell, especially if they were purchased during a "hot" market period.

Preparation for sale

When preparing for a sale, it is important to understand and take into account all aspects, including:

• condition of the housing
• the presence of fresh renovations,
• the situation around.

Every little detail can be crucial for a potential buyer. It's important to be realistic rather than hoping for a high price, especially if your property doesn't align with current market trends.

Conclusions

Thus, a successful sale of foreign real estate requires a careful approach, patience, and perhaps even a willingness to wait for the market to turn in your favor. Remember that in the situation of selling real estate, you should never rush, and there is always a possibility to find a middle ground between your expectations and the actual state of the market.