Introduction
This listing was recommended by the son-in-law of the sellers. The son-in-law is my client – whom had engaged me 3 times. I was previously engaged to sell his 4-room HDB flat and his EC. I also helped him to purchase his next property which was an EA.
This time I will be selling his father in-law’s landed property in 2019.
This means if I am able to successfully sell this landed property – it will be my 4th transaction that I will be doing for this family.
Thanks to my client for giving me a hearty endorsement to his father-in-law.
Over the years as I establish myself – I am grateful that my past clients still keep looking for me to handle their various property transactions – whether for themselves or their close family and friends.
I take their trust seriously and will not leave things to chance.
Securing a buyer with a good offer
There was stiff competition within that area – many similar units were being marketed concurrently.
When I took up the listing, I have done an in-depth study in the area.
There were a handful of units have been on the market. There was even a couple of units that have been marketed for more than a year.
I knew the road ahead wouldn’t be easy but that didn’t discourage me.
I did my research on the other competing units versus ours – not just in terms of pricing but the pro and cons on each of the units location within the area.
Another challenge I faced was the objections arising from buyers – this landed property is a 99-year leasehold.
They are concerned about the depreciation as it is a leasehold and not a freehold.
My reply was this:
When you purchase a property – you have to go back to the basics – your affordability and sustainability to make the monthly installments.
Who wouldn’t want to stay in a freehold landed property with this 3000sqft built up?
But then, this wouldn’t be the price – it will be an additional $800k to $1million more in the same area.
Within a few months of marketing – we managed to overcome all the obstacles and finally secured a buyer with a good and reasonable offer.
Lessons and Takeaways
My job didn’t end after finding and securing the buyer for their landed property.
I also helped my sellers to move on to their next purchase and guided them to buying their next home.
Here are some takeaways from this entire transaction:
- Buying a property is a long term commitment. The sellers purchased this property 23 years ago at $1 million dollars.
- Although it’s leasehold that is more than 20 years old – the property has appreciate to almost $1.7 million.
- They also have managed to pay off the property in full.
- Since they are getting on in age, it is a good time to sell it off and downsize to a smaller unit.
- Climbing up and down a 3-storey landed property is no joke and painful to the knees.
- Also it is a good time to finally cash out for their retirement.
There is a crucial point in your life when you make the right decision to purchase a property – which doesn’t stretch or overcommit you too much.
In this case, I realized they stretched well enough that they are able to enjoy the fruits in their old age. But they are also careful enough to ensure they managed to fully pay off their property.
In my years of journey as an agent, I have witnessed some cases of owners making good profits, some making losses that resulted in them losing a bulk of their CPF monies.
Some are far worse and end up with no roof over their heads!
The key to success is planning your financials carefully.
With the help of an experienced agent who has the context of knowledge, past transaction data and skills to negotiate – achieving your financial or retirement goals through property is more than possible.