18.07.2021
As our experience suggests, the value of real estate and, accordingly, the return on investment directly depends on the work done on the site and the chosen management methods.
In Cyprus, the practice of proper asset management has not yet become generally accepted.
A large number of owners believe that investing in real estate before its final sale will not bring any benefits. The opinion is justified by the fact that the speed of sale and the amounts offered will remain the same, and efforts will be wasted.
The reason for this is old-fashioned ideas in the local real estate market, which persist despite being an important part of the economy.
Asset management abroad is considered by many to be an important practice that maximizes the value of real estate and increases the speed of sale. This explains why so many companies operate exclusively in this area.
WiRE FS believes it is time to see changes in this area in Cyprus as well.
This is especially true now, as banking companies and real estate asset management organizations are adding new properties to the market. Thanks to this, competition is growing, distinguishing a property from others is becoming an increasingly important aspect of a successful sale.
Good practice in real estate asset management
To wrap things up, let’s take the real estate industry as an example of good asset management.
We took on the project with the ultimate goal of selling industrial property.Unlike the typical process of selling a property in Cyprus, we have followed the following steps:
We have collected and reviewed all property-related documents such as title deeds, planning permission, drawings, etc. Potential buyers appreciate this as such a carefully crafted process creates a sense of security and professionalism.
We inspected the premises and suggested that the owner make any necessary improvements. For example, to repair major damage and tidy up the premises so that the property makes a good first impression.
The next step was to plan a professional shooting of the premises and infrastructure in general, in order to attract the attention of potential buyers when promoting on various media platforms.
We then informed the property owner about the prices at which similar properties were sold and their starting price. Of course, in many cases the owner’s appraisal of the property differs from the actual value, but it is important to have a realistic asking price from the outset.
We have prepared a list of companies in the area that may be interested in real estate in order to focus our search for a suitable buyer.
We contacted all potential buyers, informed them about the property and recorded their interest. As for the companies that didn’t show any interest, we made sure to write down why. This will allow you to go back to the supplier and find out if there is anything that needs to be changed or improved, for example, an overpricing, the need to provide additional documents.At the same time, we prepared a second list with potential buyers based on a possible change in the direction of the property in accordance with the urban development plan of the area.
We gave the owner detailed weekly reports on every step of the process we followed.
The process is quite tough, but we finally found the perfect buyer for the property.
By following these steps, we have helped the property owner get the best possible price for the property. The whole process was within a reasonable time, the owner understood that he had done everything that was in his power.
Property owners who are active will be more likely to sell their assets.
In addition, maintaining an open line of communication with potential buyers helps them better understand what they want from a property.
