Property Sales Process | Selling Costs

 

Introduction:
Selling property in Cyprus is very safe for foreign investors.  Below is an overview of the selling process:

1. Market research:
Before you do anything, check out the market.  Unless you’re forced to sell, steer clear of slumps when prices are depressed and perhaps consider letting out long-term until the market recovers as an alternative.

2. Preparing for sale:
It is worth doing some research through consulting with local agents to get advice on how to prepare your home to increase its attractiveness to prospective buyers.  It’s vital to consider what will appeal to local buyers.

3. Marketing your property:
Once you have decided it’s the right time to sell and are confident your property is in a condition which will appeal to prospective buyers, you are ready to go to market.  The normal means of marketing a property in Cyprus is via an estate agent who can also value your property. 

If you used an agent to buy your Cyprus home, it could make sense to use the same one to sell it, as they will already know the property.  Before you take on their services, you should check carefully what they will and will not do in terms of marketing and what they will charge as commission – make sure you shop around to get the best service!

However, it’s increasingly easy these days to sell without using an agent.  There are an increasing number of specialist websites and magazines advertising property for sale in Cyprus.  The key advantage here is avoiding the high estate agents’ fees.  You will need to do your research to get the price right.  Just looking at the adverts will not be enough.  You will need to get out and see comparable properties in your area and check out their facilities.  Alternatively, you could try to sell your property at auction.

4. The Offer and closing the deal:
When someone prepares an offer, they may contact you directly or put their offer through an Agent. Review every offer, comparing the financial qualifications and readiness of each buyer. You may accept an offer as it is, reject it or make changes and present it back to the purchaser to see if they are willing to accept your changes. In turn, the buyer may then accept your changes, reject it or come back with a counter offer. This process continues until a deal between you and the buyer is agreed or negotiations are terminated.

Important legal points:

Once the negotiation process is over and a price has been agreed, the buyer will put down a reservation fee which is about 1% of the sale price. The reservation fee should be held by an appointed solicitor until all necessary checks are made and contracts are signed.

The reservation fee shows that the buyer is committed but it is also a guarantee for the buyer that he or she will not get gazumped. An appointment will be arranged to see your solicitor right after the reservation fee is taken. Although it is not required that the seller appoints a solicitor, it is greatly recommended.

The contract is then drawn up by a solicitor, and though not limited to this list, it should include the following 7 points in order for it to be a valid contract of sale:

• Reference to the vendor.
• Reference to the purchaser
• The purchase price.
• The terms of payment
• The delivery date.
• The date of the transfer of title deeds.
• An accurate description of the property.

If the property does not exist at the stage of signing the contract, for example if it’s a property to be built in the future, reference to subject specifications must be determined accurately. The legalities of this phase are very important. If you have any questions or concerns, they should immediately be addressed to your solicitor.

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