Re: Safe Exit Plan
As property markets are notoriously illiquid when prices stall/fall due to increasing numbers of vendors chasing a dwindling pool of buyers it may be the case that a profitable exit strategy after the event is impossible. I would suggest that any investor is fully clued up on the state of the market,
1. The number of transactions.
2. What’s selling?
3. What’s not?
4. Auction clearance rates?
5. The general economic climate, job losses, global trends, international property markets performance.
If you decide to sell in a stalling market make sure you have incentives to motivate your agent, many institutional property investors for instance will provide a performance bonus to a successful agent if the property is sold quickly, say €2,000 to the member of staff who secures an exchange of contracts. I know that many vendors are quick to instruct joint or multiple agents at an early stage if a sale is not achieved immediately. This in theory may expose the property to more buyers but in the age of internet listings this is questionable. Giving a good proactive agent sole agency concentrates the mind of the agent, and stops the ‘problem shared is a problem halved’ mentality, (with the agent and the vendor) and allows for a more coherent marketing campaign.
When you instruct an agent obtain the following;
1. A marketing report detailing their proposed publicity campaign, internet exposure, press advertising, mail shots, open houses etc. The report should deal with timing, costs and contingencies.
2. A proof copy of their marketing details, check for spelling, general presentation, layout and quality of photographs (get them to take a photo when the property is bathed in sunshine rather than rain sodden gloom)
3. Get regular updates on interest and feedback from potential buyers.
4. Price to get offers, a market beating price looks nice on a set of details but remember that a bird in the hand etc…
Get your solicitor fired up and have all the necessary documentation in place i.e. deeds, leases, service charge accounts, homebond certificate, possibly local searches etc. Delaying an exchange of contracts due to a hold up in the documentation could prove costly in a jittery market. Finally never remove your property from the market, its not sold until contracts are exchanged and while issuing a second contract is possibly not particularly gentlemanly, it does provide you with some insurance if your first sales falls through. Chase your agent and solicitor and don’t let the sale wither on the vine!!!!