Selling a property, need advice

Posted by Sarsky (375 days ago)

Unforseen circumstances are promptng me to sell an apartment I bought less than a year ago. Can anybody advise me on the sales process and costs of doing this.
I understand the value of the property is determined by similar flats in the same building's recent sale price. Problem is my flat is in a new
development and as far as I know no similar size apartments have been sold on the secondary market yet!
Also, a real estate agent has told me the fee is 1% of sale price. I've heard that this can be negotiated. Any views on this?

I also need advice on how much stamp duty is, approximate cost of lawyers etc.

Any advice on whether it is better to sell it directly (ie. via this site) or to use a real estate agent?
I really am feeling in the dark here so any advice is appreciated.

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Posted by oldhand (375 days ago)

- buyer pays stamp duty
- legal fees likely same as the purchase
- 1% is typical agents commission from each party
- many will not list it with less than 1% unless it happens to be 25,000 sq ft. mansion with sea view.
- if you don't reach your asking price, some deduct the different from estates agents fee.

Posted by Ed (375 days ago)

http://hongkong.asiaxpat.com/property/default.asp?type=14

Posted by Patrick Yiu (374 days ago)

Sorry to hear that you have to sell it within the first year, probably not making a profit. If you're in a new complex, first find out is there more supply from the developer. Compete with the developer is no easy task, they provide 2-3% commission to agents, plus atrractive selling scheme, your price has to be much lower than theirs to draw attention. Otherwise, just check on recent transaction price to determine your price.
Also, bank penalty is massive, cos' you are consider spectulator from their prospective. Calculate your damage before you act. My best advise is rent it out for another year if you possibly can, to reduce the penalty from bank.

Besides, the legal fee is much cheaper to sell than buy. Mortgage deed prepartion is not required, only sale and purchase deed. No more than ten grand regardless of your property value.

Posted by Sarsky (371 days ago)

Thanks for the advice people, much appreicated

Posted by walkup (371 days ago)

Yes, 1% commission is normal from an agent. If you have an HK mortgage there might be an early redemption penalty. Try to keep for 2 years to avoid this. Have all the apartments been sold in this new development? Patrick's advice is good re reducing losses. On the other hand if demand is strong then you might benefit from this 'flip'.