Most luxury home sellers in Hong Kong, particularly first-time sellers, have questions when it comes to divesting property.
For example, some might be considering a potential sale in 2022 after learning about a continuous rise in prices. The outlook for this year seems in favor of sellers, especially when there’s a perennial shortage of houses. Still, some might see the speculation that prices would further increase over the next few years as a reason for pause.
Instead of worrying about timing the market, focus more on maximizing the potential return. Here are seven tips to help you with achieving a profitable luxury home sale.
1. Choose A Broker With A Modern Suite Of Services
OKAY.COM has modernized its suite of services by launching proprietary tools for selling luxury properties. The online tools helped the firm to keep up with trending developments while providing better service to its customers.
Since 2020, the process of a home sale in Hong Kong has gone through abrupt changes. A noticeable difference involved a transition from conventional open houses.
Buyers used to see listed properties through in-person appointments, but health and safety protocols forced them to consider alternative ways.
2. Verify The Broker’s Credentials
You can only maximize a home sale by entrusting the transaction to qualified professionals.
The Estate Agents Authority (EAA) allows you to verify a broker’s credentials by entering any of the three details:
- Business name
- License number
- Licensee name
A broker’s license number provides more accurate results. For example, OKAY.COM’s license number shows the following:
- Disciplinary actions
- Expiry date of license
- Related license and subsisting conditions (if applicable)
Property sellers must focus more on the EAA’s disciplinary actions imposed on a broker and the mandated license expiration.
3. Know The Best Time To Sell A Luxury Home
The best time to sell a luxury home in Hong Kong usually happens in late spring. You’ll likely get more bids from families during this season.
Most students spend the summer away from school, so spring provides parents with enough time to prepare for a move.
If you’re still paying the mortgage on a luxury home, you should time the sale based on home equity. In other words, a successful deal should cover the mortgage and still yield a profit.
4. Review Days-On-Market (DOM) Trends
The average DOM not only implies just how fast or slow it takes for buyers to snap up properties. It also shows whether or not you’ll sell during a buyer’s market.
DOM trends in Hong Kong depend on the area, but some listings may even disappear within hours. Apartments often attract multiple bids, although the prices mostly determine a short DOM timeline.
You can also estimate the DOM for a potential listing by comparing properties that are like your luxury home. OKAY.COM suggests a comparative appreciation for similar properties such as in Hong Kong’s exclusive areas.
It’s possible to price your property at a higher value if similar listings vanish quickly, but you should be realistic.
5. Set A Realistic Price
Luxury properties may ward off even the most deep-pocketed buyer if the price doesn’t reflect the overall market.
A worst-case scenario happens when you’re forced to reduce the price because of miscalculations. In this case, you’d lose potential bids and trigger skepticism among buyers.
Repeated changes in the property’s price indicate problems such as deteriorating conditions. Consult a broker to avoid the inadvertent consequences of quoting an unrealistic price.
You could still set a better price for your luxury home by renovating it. Not all upgrades offer decent returns, so take some time to review the best ones.
6. Renovate The Property For Better Pricing
The top luxury home upgrades in Hong Kong include remodeled bathrooms and renovated floor space.
Luxury property sellers should consider high-quality wooden flooring to charge a better sale price, according to OKAY.COM.
While building a swimming pool also seems profitable, you should foresee the target buyer’s preferences. For example, some buyers may dislike the idea of maintaining a pool.
7. Remain Updated With Transaction Fees
The final yet equally important tip for maximizing a luxury home sale in Hong Kong involves transaction fees.
Brokerage firms charge up to 1% of the property’s purchase price. Stamp duties also apply whether you transfer the property through a conveyance or sale-and-purchase agreement.
While luxury property sellers in Hong Kong benefit from not paying taxes on capital gains, the most common expenses include:
- Closing costs
- Other professional fees (e.g. solicitor)
- Stamp duties
The government’s stamp duty on property sales includes rates between 1.5% and 8.5% of the purchase amount or value.
Ready to sell your luxury home? Visit OKAY.COM to list your property and get maximum exposure among the right homebuyers.