Firstly you may ask, what is the secondary market in real estate? Let me explain, this is where lenders and investors buy and sell existing mortgages or mortgage-backed securities. This frees up money for additional mortgage lending. So, you can think of the secondary market as the “resale marketplace” of loans.
In real estate sales, there is a broad classification based on who the seller is. If the property in question is newly built/under construction/off-plan and is being sold by the developer, it is considered to be in the primary market. If the property is ready-to-move-in, had been in use for a while, and is being sold by its current owner, it is in the secondary market. Both primary and secondary property markets accompany unique advantages and downsides.
However, if you’re a seller in the secondary market, then you have to do your due diligence to ensure you maximize your ROI. Unlike in the primary market, where an entire marketing and sales team is available, you are on your own here. Following are ways in which you can effectively sell your property in the secondary market.
You may think you are best equipped to sell your property — after all, it is your house, and you know its worth. But you could be totally wrong. In fact, seeking professional help can make a huge difference and get you the right offers. Professional real estate agents, especially those with a proven track record, have a better understanding of the local market, the broader housing sector, the current trends in the real estate industry, and so forth. They will know the best price point for your house. Besides, they can handle the end-to-end process of listing the property by scheduling house visits, marketing to prospective buyers, and ensuring the transaction is totally by the book with pertinent documentation.
Setting a price for your house is a tricky affair — if you set the price too low, you could end up with a lesser-than-industry-standard deal; if you set it too high, you might miss out on many good offers. Therefore, before you set the price, it’s advisable to get first-hand knowledge of the running rates in your neighbourhood. Check the history of house sales in your locality — who sold what, and for how much, etc. Once you have your ballpark figure, assess what your house can fetch you — because each property has a unique price point due to several factors, including material quality, age, direction, and positioning within a facility. Have a comprehensive and frank discussion with your realtor, and be ready to lower the price if the bidding range is a far cry from the listed price.
Appearances matter. You might be surprised at how many people go by first impressions. Your house might have solid structural integrity, the best plumbing, and the safest electrical fittings, but if there is no curb appeal, it will deter many buyers. The exterior is what people see first, and if it is attractive, they will then delve into the details. A good curb appeal also conveys the impression that you have taken good care of your property. So, get cracking — mow the lawn, plant some flowers, clean the compound, paint the gate and your front door, remove the cobwebs and any debris around your entrance, wash the windows, fix the lightbulbs, and prune the shrubs. You may then have a marketable property.
Before you call any prospective buyer, do a quick recce of your house from top to bottom. Figure out what all you can fix and repair. You may not want to go for major renovations, but do take the trouble to spruce up as much as you can. Loose tiles in the bathroom, leaky taps, missing doorknobs and handles, peeling paint, stains on the carpets and walls — all these need to be fixed. You wouldn’t want a buyer to start calculating how much s/he will have to spend on fixing the little things. If major structural repairs are required, do let the realtor and the prospective buyer know so that the asking price can be adjusted accordingly.
In secondary markets, houses tend to be personalized as per the occupant’s requirements and predilections. Chances are that such enhancements may not pander to the prospective buyer and may even deter them. This is actually one of the reasons why buyers opt for the primary market. So, it’s advisable to de-personalize your home along the same lines as a new property in the primary market. The idea is to sell the property with suggestions on “what they can do” in a particular space, instead of saying “why you like what you have done”. Remember, your time in the house is over; theirs could soon begin.
To conclude, there are no hard and fast rules when it comes to selling your house in the secondary market. You may get lucky and get a great offer, even if you market it as is. Some properties have an innate appeal, the “demand” element, and one quirky aspect that the prospective buyer cannot do without. But that doesn’t mean you shouldn’t sweeten the pot. So, do your bit, and make the prospective buyer feels as if he/she is getting their money’s worth because — unlike in the primary market — in the secondary market, at times, the buyer-seller relationship goes a long way.
At Luxury Concierge real estate, we have property consultants that can assist you with any query you may have with regards to investing in the ever growing Dubai real estate market. Contact us today.