An alternative to using an estate agent to sell your Kenyan Property

Basically, majority of people in Kenya would prefer using a registered Kenyan Real Estate agent with clean selling records. A small minority of people manage to sell their house privately by doing their own advertising and putting up their own For Sale board, but as their property does not appear in the Estate Agent’s press adverts or websites, this is very much a hit and miss affair.

Even when a sale is secured, the legal system in Kenya means that until contracts are exchanged – typically many weeks later – the sale can fall through. In fact one in three agreed sales do not complete, meaning that the sale process has to start all over again.

For anyone relocating or emigrating this is frustrating and annoying as plans have to be put on hold. For people with financial difficulties or in danger of having their house repossessed, it can be very serious indeed.

A realistic alternative to Estate Agents

At last there is an alternative to using an Estate Agent. Using a specialist property-buying company offers the speed and certainty lacking if selling on the open market through an Estate Agent.

Companies like A Quick Sale www.kisumurealestate.com are now offering a service that more and more people see as a better alternative than waiting and hoping for an elusive buyer. They will normally make an offer to buy a property within a few days, completing at a date to suit you, so that people can move on with their lives.

So, what’s the catch? Well, the main one is that they will be looking to buy the property at a reduction from the open market value. How much of a reduction often depends on the type, location and size of property but is likely to be at least 10%.

The other thing to watch out for is that some of these companies charge an upfront valuation fee of several hundred pounds. Whilst this is usually refundable if you go ahead and sell to them, it is quite possible that their offer on your property will be unacceptable to you, leaving you out of pocket!

Questions to ask

If the speed and certainty of selling to a property-buying company appeals to you, what do you need to look out for? 

Probably the first question to ask is – will it cost me anything to get an offer on my property? A national house buying company featured on Watchdog last year after many complaints from people who had paid a valuation fee and then offered much less than their property was worth.

You wouldn’t expect to pay an Estate Agent for a valuation, so why pay these companies?

The next question most people need answering is – can I rely on this company? Can they fit around me? These companies should be asking you about your timescales and deadlines and tailoring a solution around these. Look carefully at their literature and website to see if they are flexible and offer a range of solutions. It is also a good idea to ask them for examples or testimonials from previous customers.

So, if you have a property to sell, before you call an Estate Agent, it might be worth checking out a couple of these companies who can offer you a quick sale. You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts. 

Go to www.kenyan-real-estate.com for more.

All you should know before Buying Commercial Kenyan Real Estate.

Buying or renting, such is the question many business people ask themselves around the 1st of the month, when comes the time to write their rent's check.

With the interests rates being what they are and prices being affected by the commercial paper crisis, the answer might very well be yes if the right property becomes available and you can afford relatively important cash down.

Owning commercial real estate does have its advantages.

Choices:  as the owner, you can decide whether to select a building that matches your current needs, has enough room for future expansion or maybe is large enough for you to lease parts of it.

Equity: every month, your payments are applied to paying down your mortgage and building some equity which could be useful eventually to secure a loan for new equipment, to finance an acquisition or simply as an asset.

Appreciation: not withstanding any unforeseen occurrences, your building should appreciate with time.  This appreciation could,   just as the above mentioned equity, be used to get better financing conditions.

Power:  as the landlord, you are the person in charge of deciding how to finance the building, picking the tenants, choosing the decorations, selecting entrepreneurs for the work to be done, improving the building.  You even have control over your rent's rate.

                                         

If it's so great, why doesn't everyone do it?

The main reason why not everyone owns the commercial space they're using is that, in real life, thing don't necessarily go exactly as in late night's infomercials…

You can buy commercial real estate with no money down, especially if it's because your money is bringing you more in another (safe) investment.  

On the other hand, if it's because your cash flow doesn't allow you any flexibility and that you don't have anything aside should things go a little unexpectedly, then you may want to seriously consider all the ramifications of the deal you are considering.

                                                    

Your business' cash flow's growth stage.

Is your business bringing you comfortable and predictable income which you are looking to invest or would spending an important part of your income hinder any growth possibility for the near future?

Will you be able to afford any substantial and sometimes unexpected expense should you have to do unexpected maintenance on your building?

Usually, a commercial property will require a 15 cash down which, in some cases, can end up being a lot of money.

Don't forget you also have to factor in the price of insurances, taxes and legal fees.  Due to the importance of the figures involved in most commercial real estate transactions, I recommend you surround yourself with adequate representation meaning:  a real estate agent with experience and a positive track record as well as financial and legal advisers. 

You make your money when you buy, not when you sell.

                                       

One last but extremely important factor to consider before making your decision is that you make your money when you buy but realize it when you sell.

Paying more than the fair market value, not taking into consideration your cash flow factors (mortgage, interest rates, insurance, taxes and repairs incoming rent, other income possibilities such as parking for example) or letting your feelings dictate a purchasing decision may negatively affect your exit strategy for year if you are not careful.

What you should remember.

So we looked briefly at the different aspects of buying a commercial property.  Remember the advantages of being a landlord are:

1. Choices
2. Equity
3. Appreciation
4. Power
5. Make sure you carefully evaluate your future cash flow.
6. Purchasing the property won't hinder your growth strategy.
7. You can afford unexpected and sometimes quite expensive repairs should they be needed.
8. You can afford the cash down.
9. Get advice from a professional financial advisory about your tax situation.
10. Get advice from a professional law adviser.
11. Get advice from a professional real estate adviser.
12. Avoid free advice as it often end up being the most expensive kind.
13. Evaluate the building's cash flow.
14. Make sure the purchase makes sense even without appreciation.
15. Find a reputable real estate specialist.

  www.kenyan-real-estate.com

Affordable Kenyan Real Estate

I seriously doubt you will find too many individuals or families on this planet who aren't trying to find that ideal location. You know the one. There's no denying that we would all like to reside in a specific place that caters to our preferences. One where the weather is perfect, according to our personal definition of perfect, of course. One where all the amenities we enjoy are nearby. One where we can rest assured that our children are safe and the schools are great. Now, that just about sums it up. 

Naturally, on the other side of the coin there is something called affordable real estate? Whether or not you can have it all is certainly questionable. I've not found that spot yet. The few that appeared to have it all were definitely not in my price range. I'm not looking for a Kshs.250,000 a month house payment. Needless to say, there's much that goes into finding an ideal place to live. 

Where do you currently reside? How would you rate your area? Just imagine for a moment, on a scale of 1-10. You can even make a pros and cons list. Is affordable real estate one of the pros? I can say that it is where I currently reside. On top of that, the area is safe and the schools are great. That's a lot for me to give up. In all honesty, schools and safety are my greatest priorities. The fact that we encountered affordable Kenya real estate is a mere plus. Then again, we probably wouldn't be here if we hadn't. Now, I do realize that the words "affordable real estate" mean different things to different people. Some may consider 100 grand affordable, while others are thinking along the lines of 400 grand. So much rests on your house-hold income. One thing you will find is depending on where you choose to live; your quality of living can increase dramatically with the right location.

Having difficulties deciding where to buy that home? It's time for some recon work. All it takes is your personal computer and Internet access. Sort through various states and cities to get a better grasp on which areas offer affordable real estate. This is how I found my current home. 

Let the World-Wide-Web do most of the work for you. www.kenyan-real-estate.com

Advice on property for sale Kenya

Maybe you've read lots of advice on selling a house. But do you know the biggest mistake many people make when selling a house? Not understanding Kenyan Real Estate value. 

You see, it doesn't matter what you think your home is worth. It doesn't matter what you did to make it nicer for your family. The value of your home is determined by buyers. What you enjoyed about your house may be irrelevant when it's time to sell. Think in terms of what buyers want, and use some of the following advice on selling a house.

 1. Know the market. What other similar houses have sold for? Have those examples ready to show potential buyers.

 2. Decide on a minimum price - the price below which you just won't move. Don't tell your agent what this minimum is, but negotiate with any buyers who make an offer near or above it.

 3. Concentrate on the visible things first. A new mailbox is often a good idea. When buyers fall in love with the house before they even enter it, they forgive a lot of problems.

 4. Clean the neighborhood. If a neighbor's yard is a mess, give their kids Kshs.900 to pick up the yard. Spend Kshs.1500 to put flowers in any common-areas, and buyers will have a better first impression of the neighborhood.

 5. If you or your agent aren't getting many calls, try something new. Is more advertising necessary? Is the price too high? If price is the problem, drop it fast. That perfect buyer might pass on by while the home is still over-priced. 

 6. Listen to prospects. They'll be more objective than you. If you hear several times that the kitchen is dark, get out the white paint.

 7. Find the average sales time for your area. If your house is taking longer than average to sell, there's a problem, and usually it's the price.

 8. Ask your real estate agent what she/he plans to do - before you sign a listing agreement. Write down what she/he says, and hold her to her promises.

 9. If there are known problems, such as an old roof, get an estimate for repairs. The sellers may want some allowance for a new roof - until you show them your estimation.

 10. Do improvements that can realistically get you at least a two-to-one return on investment. For example, If Kshs.27, 000 to seal the driveway is likely to add Kshs.54, 000 to the sales price of the home, do it. Always consider first those things that are most visible.

There are dozens of things you can do to sell your house faster, and get a better price. Start with the ones that will get the most "bang for your buck." www.kenyan-real-estate.com