Real estate is one of the most viable investments any individual or organization can make. In Ghana, historical trends have indicated that immovable property appreciates with value over time. It should come as no surprise then that individuals and organizations have relied on real estate as a means of generating revenue.
Like other investments, real estate has its risks. Even though demand continues to outstrip supply in the country, Bank of Ghana (BoG) records show consistent levels of lower spending during economic challenges. As the country continues on its path to avert economic problems, individuals and institutions will also resort to tightening their financial belts. Sales and rentals are equally affected, leading to lower revenue generation.
In the midst of this tough economic climate, leading property portal Lamudi Ghana has highlighted six important tips to help individuals and developers yield quicker results.
1. Price it right
Pricing is an all important aspect for the average Ghanaian. Faced with the current economic challenges, people have resorted to saving rather than spending. Incentivizing individuals with lower prices is key to making a quick sale or rent. Kweku Owusu Bempong, a lettings and sales negotiator of real estate agency, Regalon said: “It would be better to reduce the price of a monthly rent rather than maintaining it as this leads to many homes not being occupied for as many as two or three years.” However if the price is perceived as too low, it may turn off potential renters because this may imply that something is wrong with the property. Do your research to find out prices of similar properties within the area or contact a professional agent to provide you with this information.
2. Provide favorable terms
People are always looking for the best value for money. You may also need to generate quick income for other investments. The best alternative to reducing prices is to put that property up for a short term lease or rental. It is customary to find individuals and organizations renting out their properties for a duration between one and three years. Coughing up that huge sum of money may prove difficult for many property-seekers. Your valuation of the property may also lead you to maintain that price. As such, you can offer the property on a six-month rental tenure or lease it for a period of between five and ten years to enable potential buyers to meet your demand.
3. Incentivize your agent
Economic research led by Alfred Marshall, the father of modern economics, indicates that financial incentives increase productivity. For this reason, making a quick sale would need extra effort and investment on your part. Offer your agent extra commission if that individual is able to strike a deal within six weeks. Reach out to other agents to provide competition for your property to achieve your desired result.
4. Make your property accessible
This is especially the case for sellers. Ensure that your property is always accessible to house-hunters. You should be flexible enough to accommodate individuals that may want to take a tour after working hours. Although an open house is not customary in Ghana, it can help sellers achieve the desired result. You should clean the home and remove the clutter to make it attractive. Your agent could then organize a two-hour tour, providing the potential new owners with a fact sheet and business card.
5. List on the internet
The best part about the Internet is that it is ubiquitous. You can reach out to thousands of house-hunters by just listing your property on property portals. The cost per lead for many of these sites is also relatively low in comparison with other forms of advertising. Akua Nyame-Mensah, Managing Director of Lamudi Ghana said: “Property portals provide a low cost means of reaching thousands of potential customers. They are available 24 hours a day, 7 days a week around the world. The amount of information you provide makes is super easy for a potential buyer or renter to decide whether or not to contact you.”
6. A picture is worth a thousand words
Pictures add a great deal of value to your marketing effort. Data compiled by Lamudi indicates that listings with both pictures and descriptions get more leads than those with just descriptions. House-hunters are likely to be more convinced when there are pictures as it creates a better image in their minds of their possible future home. Search engines such as Google also include pictures in their algorithms and this is likely to lead a house-hunter to your property when that individual makes a search.
Written by: Fidel Owusu Amoah | Content Manager- Lamudi Ghana