The Question of the Month
Because when I wonder, it’s worth… asking!
Through this column of the Synergy Real Estate monthly, online magazine, answers are provided to various questions related to properties and the real estate market in Cyprus.
Our company’s Sales Manager, Panayiotis Tofas, gives a detailed answer to the question posed to him this month, which follows:
What factors influence the sale of a property?
The factors that influence the sale of a property vary, and we will analyze them below:
• Type of Property: This is perhaps the most decisive factor in the sale, affecting it either positively, when there is corresponding demand or negatively, if the demand is limited. Depending on whether it is a plot of land, a residence, or a commercial property, demand is shaped according to the different needs and desires of buyers. Moreover, each property category may be further divided into sub-categories, which include different types of properties, such as apartments, maisonettes, studios, or detached houses.
• Location: The second most important factor, I would say is the location. When a potential buyer is considering purchasing property, they are looking to evaluate the quality of life and safety in a particular neighbourhood. Additionally, easy access to the city center, highways and services such as supermarkets, schools or universities, are critical parameters that positively influence the final decision of the buyer. Therefore, the location can add additional value to the property, while at the same time serving as a negotiating advantage in the process of closing a deal with potential buyers. Hence, the property’s ability to offer a living environment that is tailored to the needs and desires of the buyer highlights the importance of location as a crucial factor in shaping demand.
• Features: Some of the key features of a building that might positively or negatively impact its sale include construction materials – e.g. construction method, flooring, aluminium fixtures, the layout of the interior, energy efficiency, its age, floor level, and the presence of a courtyard. As far as plots of land are concerned, some of the significant features that a prospective buyer takes into account are the morphology of the terrain, orientation, and the facade.
• Condition: The good condition of the property that we aim to sell can play a critical role in achieving a successful deal. It is necessary to assess whether or not it needs renovation and repairs. A renovated property emerges as one of the safest choices for potential buyers, while for owners it yields a higher sale value. Additionally, it attracts more buyer interest, thereby increasing the chances of its sale, as the improvement changes that may be required by the buyer for it to be fully functional are minimal or zero. It is of course respectable if a seller doesn’t want to invest in renovating a property. However, it is important to note that a potential buyer takes into account the cost of this renovation, adding it to the final purchase price. Therefore, it is clear that if they are genuinely interested, they will negotiate a lower purchase price to cover the expenses that they will incur later on.
• Correct Pricing: A reasonable sale price, which can be substantiated based on a professional appraisal of the property, can generate more interest and potentially, lead to a quicker sale. It facilitates negotiation and reduces the risk of deal failure. Our recommendation to property owners is, before setting the sale price, to conduct market research to understand the current market trends. With the help of a real estate consultant or appraiser, it would even be advisable to refer to transactions that closed in the recent past involving similar properties in the same area. This will provide the owner with a benchmark to understand whether the desired sale price aligns with the realistic – based on data – market price.
• Promotion: Proper promotion through photos, videos, and professional presentations is critical for a successful sale as it provides potential buyers with a comprehensive picture of the property. A properly advertised property can stand out from the competition. Continuous presence on real estate-related online platforms and property listings expands the circle of potential buyers, making the property accessible to a wider audience.
• Economic Factors and Development Prospects: The economic situation of potential buyers influences their purchasing power. Often, the availability of loans and banking policies shape investment trends and purchasing power. Furthermore, the general economic condition of a country or region can influence how people engage in property transactions. At the same time, tax considerations – such as taxes on profits from the sale of property – often regulate the decisions of property owners, sometimes discouraging them from proceeding with a sale.
* You can also send us your own questions for resolution at info@synergyestates.cy
