Selling property in Luxembourg Everything one needs to know!
The sale of real estate property cannot be improvised, even more so as the real estate market in Luxembourg is very active. How should the property be evaluated; how should it be presented and which business strategy should be developed? Advice from Didier Postal, Managing Director of the IDEmmo.
The estimate is an important step that should not be overlooked. “It will facilitate the verification of key data concerning the object put on sale, such as its cadastral situation, the eventual existence of easements encumbering the object, etc.” explains Didier Postal, Managing Director of the IDEmmo agency. “The principal objective is to target the best buyers who are increasingly more well-informed of the realities of the marketplace and master the latter better and better”.
Moreover, in order to set a fair price that will contribute to finding a maximum of potential buyers, two major principals come together to orchestrate an estimation: the study of what is known as a theoretical price and the study of a competitive price. “While the first will help to determine a price based on precise calculations and an average pondered value, the second will allow to compare this price to the reality of the marketplace, especially as regards to other competing goods at “T” time. However, real variations between the theoretical price and the competitive one can be noticed.
Generally, a good estimation will allow a sale to take place in an average of 3 months. To determine a fair price, several parameters are taken into account: the location of the property, its state of use and its amenities.
“Thus, an apartment situated at Esch/Alzette equivalent in size to one in Luxembourg will not have the same estimated value… Moreover, the date of construction will also influence the price: Older goods must be studied in relation to the condominium charges: Are there replacements or particular repairs to be furnished?
The budget for this will influence the selling price”
Presenting the property: the administrative documents and the interior design
To optimise the sale, it is essential to make a good presentation of the object. “In this regard, the analysis can be divided into three parts: the first consists of the administrative aspect of the property “. The future seller must
present the energy passport, the blue print, the cadastral situation and eventually a series of invoices justifying work done inside and outside the property. “In the case of a condominium, it is necessary to furnish the minutes of the last three General Assemblies in order to become acquainted with the group of proprietors. In the case of a property less than 10 years old, it is also necessary to prove the existence of the decennial guarantee.”
Then the question of ameliorations to the property can be posed: does it have a real incidence on the price?
“We must therefore find a compromise between standard ameliorations and deluxe ones, because their cost is very different, but is not systematically found in the estimation.” During the visits, it is important to present the property in its material version placing into evidence good quality improvements with a maximum of depersonalisation of the interior life space.
“We are thinking here about “home staging” which has repeatedly shown its efficacity. For example, we will take into consideration the odours, the luminosity, the accessibility of each room, allowing each room to be the least encumbered as possible, because the Seller ‘has nothing to hide’. Another question to ask is should one renovate before selling? “Our advice is negative on this point. On one hand, the cost of the work might not correspond to the buyer’s taste. On the other hand, it is always more judicious to let the property be discovered in its normal state especially in the case of apparent defects such as humidity, it is important that the potential buyer sees it! “
“To make the ads, it is a good idea to take high quality photos of the property! It will be necessary to find the right balance between a standard photo and a professional one.’” The objective is to convince the prospective buyer to come and visit the property while reserving some nice surprises for him”.
Lastly, the seller must organize the potential buyer’s situation by giving him a series of information on the environment of the property: the existence of nearby child care centres, or a school, bus lines or other public transportation in the neighbourhood, as well as the proximity of boutiques and supermarkets, etc.
Define the right “business strategy”
It is not a good idea to try to sell immediately without having established a plan! “If you are the proprietor of a house, it is a good idea to launch the sale at the beginning of sunny days, because in Spring, the market is more vigorous for this kind of property, since your outdoor space is more enhancing.”
Moreover, t is vital to think about the way in which to present the property. Through which channel of distribution? “Our opinion is that internet cannot do everything, and therefore it is necessary to diversify the methods. For example, a commercial brochure can be just as effective, as well as detailed information displayed in the neighbourhood where the property is situated.
There is another burning question: should the property be presented by a professional intermediary? “Our answer is OUI, but…What do we mean by professional? There are several parameters to control: Is the intermediary authorized to do his mission? You can ask him to prove his accreditation during your first meeting.
Does he have the right tools to carry out his mission? Is his real estate office properly referenced? Is he efficient? To find out: observe him in his commercial approach and look how he goes about trying to convince you. What is he going to promise? A sale always depends on a third person! One cannot promise to try everything to succeed…”
To conclude, putting up a property for sale can be a beautiful adventure which should not be improvised. “It is a game of methodology and talent which must serve the Seller—proprietor”. The most important is to master the rules of the game to use them with conviction to obtain success!