Buying or Selling Property Abroad in a Downturn

Whether you’ve got the bit between your teeth and you’re determined to get out of the UK and find a new home abroad, or you want to cash in on the strong euro/weak pound ratio and flog off your property in Provence for maximum gains, we’ve got 10 top tips to help you whether you’re buying or selling a property abroad in this current global downturn.

For buyers we have salient advice about making sure you do your homework and have your finances properly aligned so that you can jump in for the kill when you see that ideal bargain.  And for sellers we have positive tips that will stop you panicking if you need to exit the market and help you still get the best out of your home abroad, no matter what your circumstances.

So, whether you want to buy a holiday hacienda, you’re looking for a retirement retreat or you need a brand new home to live in abroad, we will advise you.  And if you’re selling out to profit, you need to get out of the market or you’re just bored of you’re ideal lifestyle overseas in the sun (!), trust us to give you the tips you need.

Advice for Those Selling Property Abroad in this Downturn

1 - If you really need to sell your home, then the number one piece of advice has to be that you should price it to sell.  You may be told what it’s worth by an estate agent, you may have in mind the value you want to recoup, but if you really do want to sell it, what is a buyer going to pay for it?  Estate agents often suggest you mark up the price so that there is room for negotiation – trouble is that can have two negative effects, firstly it will prevent some potential buyers even viewing the home as it is outside of their budget, and if you do then find you can’t sell and slash the price at a later date, this can smell of desperation.  It’s better to think about putting the home on the market for a price that will get it shifted if you absolutely have to sell it.

2 - Be as open to negotiation as is possible – buyers sometimes need a vendor to be flexible in terms of completion dates for example, so if you’re selling abroad and you have another home to go to, perhaps you should move out as soon as possible.  This may even mean you have to go into temporary accommodation to accommodate your buyers’ needs.  What’s more, buyers buying abroad may want to negotiate things in to the deal such as the barbeque or outdoor furniture.  Think hard about these negotiations – they could be make or break.  But at the same time, if you think your buyer is taking the proverbial, don’t be afraid to say ‘no.’

3 - Do you really need to sell?  I know, this may well seem like a daft question, but if you are living abroad and just selling to get more space or to live in a better location, do you have to sell?  Couldn’t you perhaps extend or improve your living space?  In many nations it really is not the best time to sell, so if you really don’t have to, if you can find alternative solutions to the issues you’re facing, then perhaps you would be best advised to do so.

4 - Don’t fall foul of ‘gazundering’ – this is where your buyer returns at the eleventh hour and either threatens to pull out or reduces their offer significantly.  This is usually caused by the vendor not being 100% upfront and straight about any issues with the property.  Whilst in the UK surveys and in-depth research into the property a buyer is considering purchasing are the norm, abroad some buyers decide to buy almost unseen…however, if they then go away and have time to think about the property, to question others about it or just to speak to the local town hall for example, and they then learn of some issues with the property such as noisy neighbours or an illegal extension, they will return to you and drop their offer or withdraw.  It is therefore best to be straight and upfront from the start.  Buyers will appreciate and value your honesty.

5 - And finally, lose your emotional attachment with your home as soon as you can.  As you clear it up and out for selling it, as you ditch the clutter and depersonalise, spend the time saying goodbye to the property so that when it is sold you don’t feel, as acutely, your sense of loss.

Advice for Those Buying Property Abroad in this Downturn

1 - As you probably already know, for buyers, falling prices are particularly positive.  This is true even if you’re a buyer with a home to sell too.  This is because the buyers who want to trade up will find that the gap between what they have to sell and what they want to buy effectively narrows in a downturn.  So, if you’re looking for a property abroad to buy, know that you’re in a strong position and be confident.

2 - Haggling is your best bet if you want the best deal on a given property.  The thing is, most people assume that because this is a huge downturn and vendors are all desperate to sell, that every property will be priced at a bargain level.  Unfortunately for buyers that is not always the case.  Some vendors aren’t desperate, they just want to sell, and they aren’t necessarily prepared to offer their home for sale well below market value.  If you fall in love with such a property, what you can do is haggle.  You can haggle on the price, you can also perhaps instead consider haggling on the terms of the sale.  If the vendor has attractive furniture or fittings you can ensure these are included.  Perhaps you can push for completion to be on your terms.  Look at this as the perfect time to haggle.

3 - If you’re moving abroad and are looking for a house to buy, know that you may well be in a better position to buy once you’re actually living in the nation in question.  This is because you will be more settled, less in a hurry, have more time to think, plan and consider, and because also, you will get to know different areas and which ones suit you and your budget, not to mention your lifestyle.  If you rush in and think that the market is about to turn, you may well actually buy a pup.  So, consider renting abroad before buying so that you’re sure you’re buying in the right place and at the right price.

4 - Research the market well, don’t just leap in with both feet because you see a home that has been heavily discounted.  You need to apply the same methods of approach when buying abroad as when buying at home.  You need to research the market, look at what similarly spec’d homes are selling for in other locations, ensure that you are buying what you think you’re buying, and that there is nothing amiss with the property or the land it sits on.  Doing this due diligence is critical and essential and all other adjectives like that!  Do not skip this part of the buying process – if you do so, you buy at your peril.

5 - And finally – have your financial affairs in order so that you are ready to go when you find the perfect property.  This is even more critical if you decide to buy at auction because you have a very short window of time in which to complete the purchase process.  Also, when buying abroad you need to know how the buying process works, when you will be required to sign contracts and pay deposits etc.  Do all this homework ahead of any offer to buy so that you know what you’re getting yourself in for and you know how much money you will have to play with.