Selling a house in Turkey isn’t all that much different to selling a house anywhere else (remember the exceptions to every rule proverb), pretty much the same principles apply to and the same pitfalls await sellers no matter where they are selling.
Article written by Julian Walker of Spot Blue
The best advice one can give anyone selling a house practically anywhere is to get the asking price right the first time around. With many potential buyers signed up to receive notifications of new listings you will rarely get as much of their (opted-in) attention again.
Research has shown that homes for sale reach the most potential buyers in the opening 2-4 months of being on sale, so if the price isn’t right you lose your best chance.
If in doubt it is better to be slightly too low, because multiple offers can drive the price up, while if you are too high most buyers will likely just move on to the next offering. You have to price to draw the offers, but how do you know what the right asking price is?
How to Value a Home in Turkey
A home’s value is determined by what buyers will pay, not a seller’s ambition, hopes or dreams. Just because a home is the only one on its block to have added a pool, doesn’t mean it is worth more. If that pool is in an area where most buyers would prefer a good lawn and/or a generous garden then it will probably end up fetching less.
The best way to value a home targeted at domestic buyers is to look at sale prices of comparable homes in the area to ascertain value. If prices in the area seem to be falling then you will want to get ahead of the curve and price below the competition in order to get a good sale. If prices are rising you can price in at the comparable value or slightly above if you wish, as slightly above will still be in the right range to attract buyer attention.
But in the case of the likes of Turkey, where you also have a big foreign market there are other considerations. Some say that foreigners pay different prices when buying property in Turkey, and while this is true for buyers who fail to do their research properly, it is exaggerated to say it’s just how things are. In actual fact it is more a case of foreigners seeing and looking to buy a different set of properties to the locals.
Developers often create developments specifically for the foreign market and vice versa. Judging by the fact you are reading this article, you are most likely a foreigner looking to sell a home in Turkey, which means it is probably a home built or geared towards the foreigners market. Either way it is better for you to attempt to sell it in this way, because analysing sale prices in the local area is difficult for foreigners.
However, the way to ascertain a good asking price to attract foreign buyers is a very similar principle based on supply, demand and competition. Prices are directly affected by the number of similar homes on the market. If there are a lot of houses like yours in the area for sale you need to come in well below the competition in your opening sales drive, as you will rarely get a second chance to get it right.
This can be overridden if that market is extremely popular, and/or you have a very unique property with strong selling points that really set your property apart from the crowd.
Unfortunately, the opposite isn’t true in this case; just because there are very few comparable properties for sale in the same area as yours doesn’t automatically mean you can price slightly higher. This depends on demand. Not much demand will mean you still need to price below the competition to get a good sale.
If you find that you are in the rare position of having one of the few properties in your area looking to sell, and that area is also currently popular with foreigners then yes, you can price above the competition and still stand a good chance of selling in a reasonable time frame. Though, for obvious reasons this set of circumstances is very rare indeed.
Sellers on the foreigner market have a big advantage in the form of the internet and its property-portal giants. These give an almost instant snapshot of how much competition for homes there is in your area, and how quickly listings disappear is a gauge on demand. It is a doddle to check the English portals and those of Eastern Europe or any other markets that you are targeting, not least thanks to Google Translate.
The portals are a good way to get a snapshot of the market, but if you really want to make sure you get the asking price right the first time you should really ask a reputable agent involved in the Turkish, or your applicable, market.
A reputable agent with extensive knowledge of the market is best placed to know what price to put your home in at off the bat, not just because of their expertise and market knowledge, but because they have no emotional attachment to your property.
On top of that private sellers can’t list on some of the bigger portals. However, it can’t do any harm to have a look at the portals first, believe me, if your market is saturated with similar properties, a look at the portals will leave you in no doubt about it and you will know to price low before talking to an agent. But if it is less obvious what the local market is doing, you are definitely better to seek guidance, because, as I said, if you price wrong in your opening market push, you miss your best chance to sell.
Spot Blue are a leading UK based agent selling property in Turkey. If you’d like any further help or advice, you can contact them directly on 0843 313 9272 or by clicking here. You can also view Spot Blue’s listings on Rightmove Overseas
The views and comments herein are those of the author and do not necessarily reflect the views or opinions of Rightmove Overseas, Rightmove Group Ltd or Rightmove Plc