If you’re selling a property abroad, it stands to reason that you’ll want to make as much money from the transaction as possible. However, there are more things you need to consider than if you were doing a similar deal in the UK, particularly if you plan to repatriate the proceeds.
Here are a few points to think about before you put your real estate asset on the market.
Is it a good time to sell?
If you have a choice about whether or not you sell your property, it’s important that you do some research about the state of the local market. For example, if your home is in somewhere like Spain or Greece, you’ll currently be better off if you hold on to it until the market here improves.
Should your property be in an up-and-coming destination – Brazil for example – or one considered to be a safe haven, such as parts of the US like New York, now could be the right time to put your asset on the market.
Everyone wants to get as much as possible for their property when they put it up for sale, but you need to stay realistic about the price. Put it too high, and you’ll deter buyers who may otherwise have been interested, but price it too low and you’ll end up losing out.
You should look at how the market is performing in the area your home is located in and base your asking price on similar properties in your locality. Get valuations from several local agents to give you a good overall picture of what your property is truly worth.
Market it effectively
To have the best chance of receiving a good price for your real estate asset, you need to reach as many potential buyers as possible. Don’t just restrict yourself to putting up a board outside the house and having the details displayed in a local agent’s window.
The internet is a powerful tool for marketing nowadays, so use it wisely! List your property on a dedicated website for homes abroad and make sure you include several nice photos of the interior and exterior to draw purchasers in.
Consider whether it is also worth advertising in local papers if you want to target people living in and around your area, in addition to overseas buyers.
Be savvy with foreign exchange
Once you’ve actually sold your property, the next thing you’ll need to work out is how to transfer the funds back to the UK, if you’re planning to return to the country permanently, of course.
High fees levied by banks on foreign transfers and unfavourable exchange rates can really hit your profits. You could stand to lose thousands of pounds on a large lump sum of £100,000 or more if you don’t convert your money at the right time and get hit by hefty charges at the bank.
Using a specialist currency exchange provider is advisable if you want to get the best exchange rate for your cash. In fact, if you transfer the funds at the right time, you could even stand to make money on the transaction.
This kind of organisation will assign you a personal account manager who will help you find the most favourable exchange rate and suggest ways of improving the amount you make from the transfer. This may include opting for a product that locks in a specific exchange rate, allowing you to transfer the money at a future date without having to worry about currency fluctuations.
You’ll also find these companies have very low fees – or even no charges depending on the amount of money you’re transferring. If this is something you’d like to know more about, click here for further information on repatriating foreign currency to the UK.