Guide to selling Cyprus property with or without Cyprus estate agents

Selling Cyprus property can be an awesome task. We have compiled this simple step by step guide which will help you sell Cyprus property as well as explaining the legal process involved in selling Cyprus property.

1. Preperation for selling Cyprus property

The preparation phase for selling Cyprus property can be as long or as short as you make it. Some people spend months deciding, while others pack up and move on the blink of an eye.

1.1 Ways to Sell Cyprus property

There are three basic ways of selling Cyprus property:

- Through Cyprus Estate Agents
- Privately
- Through an Auction although this method is at its infant stage in Cyprus

1.1.1 Selling Cyprus property with Cyprus Estate Agents This is far, the most common method. There are many Cyprus estate agents listed on our site all very professional that can help you with:

- valuing your Cyprus property
- attracting buyers
- arranging viewings
- Negotiating sales.

Most people choose to sell Cyprus property through Cyprus estate agents because it is more convenient, and often more effective, than selling Cyprus property privately. Good agents have a wide network of prospective buyers, and know how to promote your home to these eager home hunters. Bear the following in mind when selecting an estate agent in Cyprus:

Costs of selling Cyprus property

Most Cyprus estate agents charge between 3-5% commission on the successful sale of your property in Cyprus, but check for extras such as advertising and marketing.

Terms of mandate

Decide whether you want to give the Cyprus estate agent a sole mandate or whether you want to work with multiple agencies before you instruct an agent.

Selling Cyprus property and Valuation

Make sure you and your Cyprus estate agent agree on the value of the house, because he or she will be negotiating on your behalf. Cyprus estate agents listed on our site can help you value your home.

Market reach

This is very critical in your selection process. You want a Cyprus estate agent who can attract the largest pool of prospects for your home. Ask to see how they perform on selling Cyprus property, where they advertise, and their process for following through leads. Listing your property with us will reach thousands of home buyers every month.

Reputation of your Cyprus estate agent

Talk to the locals, and find out as much as you can on Cyprus estate agents.

Selling Cyprus property - services

Everybody wants to work with people they like and trust, and have your best interests at heart. The agent is working for you, so you should interview him or her in the same way you would interview any employee. Discuss how you expect to communicate with the agent, and the kind of service you expect from him or her.

Remember that they are paid for this service. But, they only get paid if they succeed in selling your home.

1.1.2 Selling Cyprus property as a Private Sale

Selling Cyprus property yourself will have no doubt saved you the agent's commission, but not necessarily the time or headaches that go with it. You'll have to do the job they normally do - valuing your home, finding prospective purchasers, holding viewings and negotiating sales. We do not recommend this method for obvious reasons but you may prefer this method.

1.1.3 Seeling Cyprus property on Auctions

Selling through an auction is not a good choice but you may opt for this choice if you are desperate to sell.

The auction process is quick, with the exchange of contracts happening before you leave the auction, with completion taking place 30 days later. Most of the work happens prior the auction, when you have to open up your home for viewings by prospective bidders. Auctions are not the cheapest way to go. Usually, the auction house will change you an upfront fee plus commission. Find out precisely what is the auctioneers terms and conditions.

1.2 When to Sell

Depending on your reasons for selling Cyprus property, seek the advice of your Cyprus estate agent as to when it's best time to sell. Generally, January to March is a busy viewing time, and March to August seems to be the busiest time for closing sales in the property market.

1.3 Selling Cyprus property - Presentation

First impressions are critical in the property market. From the very minute the estate agent walks through the door to value your Cyprus property, to the moment when the last viewing is over, you have to think about how your property appears to others.

Exterior - first impression starts on the street. Think about tiding up the garden, sweeping around the front gate, painting the window frames and doors, or cleaning up the junk mail collected in your mailbox.

Clean and fresh - the place has to be tidy and clean. Remove all your junk, clean floors and table tops until they shine, bring fresh air in and take the refuse out. Decor - most people rate a room based on the furniture, curtains, rugs and other pieces in it, even though they aren't getting these with the house. If you have old, tatty or garish furniture, try to make it more appealing to viewers.

All in order - fix the leaky taps, the humming heaters, and vibrating refrigerator before your viewers come into the house.

1.4 Costs

Unfortunately, you may have to spend some money when selling Cyprus property. Below is a list of the items that you may need to attend to during the selling process and the costs that you will incur:

- Decorating
- Repairs
- Furnishing
- Agent fees (3-5% commission)
- Advertising fees (if selling privately)
- Conveyancer's fee to oversee the selling process

2. Valuations and purchase price

How much must you sell for? This is the golden question.

Make sure the property looks its absolute best before the agent walks in the door to give you his or her best guess of what your home will fetch on the open market.

2.1 What to Expect

Cyprus estate agents will give you a valuation on your home for free. Sometimes however in order to try to get a mandate from you to sell the property. It's worthwhile to contact three or four Cyprus estate agents and ask each one to give you their best price for your Cyprus property.

If your Cyprus property has special features, try to find a Cyprus estate agent who specialises in unique homes to value it for you.

Be aware that some Cyprus estate agents may use high valuations as a way to persuade you to instruct them for the sale. But over pricing may mean that your property won't sell.

Also, different estate agents have different training, and this leads to discrepancies in how they value a property. ASK to understand how each Cyprus estate agent arrived at their valuation and what factors were taken into account.

2.2 Selling Cyprus property and Variables

While there are different techniques used to value properties, all rely on the same basic indicators:

- Economic Trends
- Interest rates
- Housing Supply in the area
- Buyers' Demand in the area
- Price of similar houses recently sold
- Condition of the property.

Cyprus estate agents listed on our site can help assess a fair value for your Cyprus property by comparing it to similar properties in the area. Ask your Cyprus estate agent about giving you a report on your home.

3. Selling Cyprus property involves Marketing

The ultimate price for your Cyprus property is based on what a willing and able buyer is prepared to pay for it. The more prospective buyers you can attract, the better your chance of getting a higher price.

3.1 Selling Cyprus property on Websites

Approximately 80% of home buyers use the Internet as one of their primary means of searching for Cyprus property. That means if you don't advertise your Cyprus property on a well-known website, you'll be missing a huge audience.

The web is much more effective way to search for Cyprus property because usually sites are updated daily, if not more often, and can display photos and descriptive text better than a newspaper advert. A home buyer can find exactly what he or she is looking for just by typing in a location and clicking a button.

Which website should you be on? Some would say the more the better. If you sign up with us we have a very large investor database all who are seeking properties and investment opportunities in Cyprus.

3.2 Selling Cyprus property - Advertising

Cyprus estate agents listed on our site advertise in local and international newspapers, have road shows, and attend exhibitions and other trade. Do your homework and ask questions.

How you present your Cyprus property is very important. Choose an estate agent who pays attention and who:

- Takes high quality photographs of your home
- Creates floor plans that can be viewed electronically as well as in printed material
- Writes flattering but honest text about your home
- Prints high quality brochures, with easy to read layouts

How else does your Cyprus estate agent spread advertise? Does he call, text or just send mailings to all his prospects who've expressed interest in your type of property? Does he push prospects for viewings? How wide is his network? Does he have associates in Europe?

3.3 Local versus national

The vast majority of people move locally, so an estate agent with extensive local knowledge will be the most appropriate choice for the majority of sellers. However, to get the maximum exposure for your Cyprus property, you may want to select an agent who advertises on our site to ensure that buyers, who are relocating from outside your local area, are able to view your Cyprus property.

4. Selling Cyprus property - Negotiation

4.1. After weeks of keeping your Cyprus property polished and spotless, and days filled with showing off your place to complete strangers, you have an offer. Now the negotiations begin.

Whatever your primary reason for selling, use this to drive the negotiations.

Is your move driven by need or desire? If driven by need, you are more likely to entertain lower offers for your home than you are if your move is driven by desire.

4.2. Understanding the position of each party

Seller's position

Your negotiating power will be affected by the following factors:

1. Level of interest in your property - if offers are flooding in, hold out for the one you have been waiting for.
2. Current Market Conditions - if it's a "hot" market, where demand exceeds supply, then sellers can expect to command a favorable price for their properties. If it's a slow market, where supply exceeds demand, sellers will not have the same negotiating power.
3. Length of Time on the Market - the longer a property stays on the market, the weaker your negotiating position as a seller.
4. Condition of the Property - the more repair work that needs to be done on your property, the weaker your position in negotiations.
5. Time Pressure - the more time pressure you have, the weaker your position in negotiations.

Buyer's position

The buyer's negotiating power will be affected by the following factors:

1. Chain or No Chain - buyers who are not tangled in chains (someone has to buy their property before they can buy yours), are in a superior negotiating position to those who are in chains. Look for buyers who are:
a. First Time Buyers
b. Between Homes (might be renting now)
c. Buying with Cash
d. Investing (this won't be their residence)
2. Pre-approved or Not - buyers whose mortgages have been pre-approved will be a better position than those who have to wait for the paper-work to be processed. You know buyers with approved mortgages have the money to pay for your home
3. Time Pressure - as with the seller, the more time pressure a buyer has, the weaker his position in negotiations.

Estate agent's position

The estate agent works for the seller.

- The estate agent's commission is based on the selling price of the property, so it is worth his while to try to get the highest price possible.
- The estate agent works in the field everyday, and may be more realistic than the seller about conditions in the market.
- While the estate agent wants the highest commission possible, he also would rather get something than nothing. So, it is in his interest to put both parties in a win-win situation when possible.

As a seller, it is important for you to understand your particular estate agent's position before you go into negotiations with a buyer. Have a brief conversation about expectations and motivations of each of you before going into negotiations.

4.3 Not selling?

It will become frustrating not selling your home in a timely fashion. It can affect so many other plans. If this happens to you you have a number of options:

- Reduce the Purchase Price - the most common approach to take. If no one is buying, chances are the price is too high. Talk to your estate agent and check the prices of similar properties in your neighborhood. What have they been selling for?
- Play the Field - if you are currently only dealing with one estate agency, you might consider instructing more agencies. This will widen your pool of prospects, and may spark a little healthy competition between agencies.
- Take It Off the Market - if you are selling because you want to and not because you need to, then this is a viable option. You may want to wait for a slow market to recover.
- Wait It Out - if your property is not sparking much interest at the current price, and the market conditions are not dramatically changing, there is little reason to believe that keeping your home on the market at its current asking price will succeed. The longer a property is on the market, the less desirable it appears to purchasers.

4.4. Selling Cyprus property and Final Thoughts

- Do your homework. Take time to understand your estate agent's motivations and negotiating style. Figure out a negotiating strategy with your estate agent. And don't let your personality get in the way of a negotiation.
- It is easy to get sentimental about your home. But you are selling it, so you have no say in what buyers will do to it after it is sold (unless it is a listed property.) Try to keep your emotions out of negotiations.
- Don't take your home off the market for a buyer who hasn't exchanged on his home yet.
- Don't exchange on a new property until you have exchanged on your current home.

5. Accept an offer: Next Steps

Well done. This is the time you have been waiting for. You have accepted an offer on your Cyprus property. Now, you can start the legal process of passing ownership on to your buyer. Make sure you have agreed on all the essential terms of the contract.

Once you accept an offer:

- It is legally binding
- Usually, the buyer will have arranged surveys and solicitors before making an offer on the property
- The buyers' solicitor will prepare the contract of sale for you
- Normally a deposit will be payable by the buyer and for you to take the property off the market.

6. Legal work involved in selling Cyprus property

Conveyancing is the transfer of ownership of property or land from one person to another.

Who does the legal work?

Legally, conveyancing in Cyprus can be undertaken by anyone. However, the process can be time consuming and most people prefer to employ a professional.

Many people opt to use a specialised Cyprus conveyancer, who are qualified in property matters. We can undertake the process for you.

Compile draft contract

This contract is a legal document that sets out the terms of the sale. It is initially drafted by the purchasers Cyprus conveyancer. It will contain details about the property, items that are to be included in the sale, the buyer's and seller's particulars, how much the property will be sold for, and the transaction date. The Conditions have information about the proposed completion date and any deposit required when contracts are exchanged. Always insist on a deposit however.

Answer all enquiries from buyer's Cyprus conveyancer

Usually, the buyer's Cyprus conveyancer will need information from you, such as:

- What is included in the sale? What contents will the seller leave behind?
- What are the boundaries of the property? Who owns and is responsible for any perimeter structures (like fences, hedges, etc)?
- Is the property connected to all the appropriate utilities?
- If it is a freehold.
- Is the owner up to date with service charge bills?

You approve draft contract

After the conveyancers have drafted the contract, then you review and approve it if you are satisfied. Once all parties are satisfied (and you've seen the formal mortgage offer from the buyer), a final printed copy of the contract will be sent to you for signature. You sign it, and send it back to the conveyancer.

- By this time the buyers' conveyancer would have organised searches at the local authority on the purchasers' behalf, and asks for a sum on account of such expenses.
- Request the deposit if not already paid.
- Received mortgage offer and dealt with all the conditions.
- Received search results and dealt with any problems revealed.

What follows after signature:

- The conveyancer receives the total purchase price if the purchaser is paying cash for the property.
- Prepares the deeds for the registration at the Land Registry.
- Conveyancer pays the necessary transfer tax which he has collected from the purchaser.
- Attends Lands Registry to register and transfer the property into the purchasers name. If the purchaser has obtained a mortgage loan the registration of the mortgage is done simultaneously with the transfer and the conveyancer is paid the proceeds of the mortgage loan.

7. Selling Cyprus property - Completion

This is the moment you've been waiting for. This is when you receive payment from the purchaser and the property changes hands. Below is a quick rundown of the final steps involved in the process.

Receiving payment

Once contracts are exchanged, the sale of your Cyprus property is legally binding. No backing out now. You have to stay in close touch with the Cyprus conveyancer to track the proceeds and the funds.

1. You receive buyer's deposit (if there is one), when you exchange contracts.
2. The conveyancer finds out how much you still owe on your current mortgage (if any) and pays.
3. The conveyancer attended to the transfer.
4. The buyer's mortgage bank will send the balance of the purchase fund to the conveyancer.
5. The conveyancer will clear the balance of your mortgage. For example, if you still owed € 50,000 on your mortgage, he would pay that off from the funds sent by the buyer.
6. Your conveyancer will send the remainder of the money to you.
7. Open the champagne; you have finally succeeded in selling your home!

Countdown checklist

There are so many things to think about, that it is helpful to have a quick checklist handy to know you've done it all.

One month before move

- Arrange for your post to be redirected to a new address.
- Get quotes from removal/van hire companies.
- Arrange for meter readings (electricity, gas) and disconnection of services and transfer to buying.
- Arrange for phone service to end on moving day or transfer to buyer.
- Arrange for council to dispose of any large items that need to be thrown out before move.

One week before move

- Confirm date and time with Removal Company.
- Start packing everything that is not essential everyday.
- Write out instructions for any appliances you are leaving behind.
- Settle any local bills.
- Plan process for moving your pets.

Last day before move

- Make sure all your essentials are packed in one place.
- Put all your valuables and documents in a safe place (you may consider moving them yourself).
- Put down dust covers or plastic sheets to protect carpets.
- Insure all meters have been read, and services will be disconnected.
- Go through every room, closet and cabinet to make sure you have not left anything behind.