Salam guys, as promised am sharing my personal guide on how does one let go a risky property fast in a downturn market.
This was my advise to this 1on1 client recently :
Admit that you made the mistake and throw your ego away.
The problem with most people is not that they dont know that they bought something risky.
Their biggest mistake is thinking that they delusionally think that the worst case scenario might not happen to them.
The sooner they accept the reality, the better.
Sell as early as possible at a slight discount.
Normally, asking prices will be high in the first 3 months of VP.
Personally, I would undercut everyone and sell my unit fast-fast. I’ve seen some developments that went below developer’s price after 2 years of VP.
There was a guy that sold only 10% above his purchase price, and all his friends think that he is an idiot for doing so.
Guess what, he made money while the “clever” friends now are trying to sell at developers price, and cant even sell.
Be flexible in negotiations.
If bank values if 400k, and you are selling at 360k and your buyer request for mark up, just accept ( as long as they pay all incremental cost resulting from the markup).
Beggars cant be choosers, and the longer you wait the more units for sale will come to the market.
Basic demand and supply, if supply is high then values will go down.
If everyone sells bare, you give extras like kitchen cabinet, wardrobe etc and sell at the same price as your competition.
If your unit is asking for 400k like your neighbours, buyers will flock to your unit because you have additional kitchen cabinet or wardrobe.
Everyone loves a good deal.
A makeover will help create a blue ocean for you in a see of red oceans.
Be friendly with your agents who specialises there.
If all else is the same, they are more likely to serve you better if you are nicer.
Most owners can be assholes when dealing with agents so being nice doesnt hurt your chances.
I hope you benefited from this sharing, and do share this out if you think your friends can benefit from doing this for their properties.
Lastly, I believe that there’s no such thing as a bad property, just bad investors. And you can reduce your risk greatly by increasing your knowledge and become more skilled at investing.
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