Homeowners may look to sell a foreign property for any number of reasons. Relocating after living overseas, selling a holiday home or perhaps inheriting a block of land in a far-flung destination.
Our tips on what to do when selling property overseas can make the process so much easier.
Get the DIY jobs or renovations done
Before putting your property on the market, be sure to finish off any lingering maintenance repairs or renovation efforts.
Buyers won’t be paying top dollar for a property with outstanding repairs or unfinished renovations — many are looking for a home that’s move-in ready with no repairs needed. If that’s not the case, it means the buyer has a lot of leverage to negotiate the price. You’ll get a better return on your investment by finishing any projects or essential repairs.
Sprucing things up with simple improvements like a fresh coat of paint, roof clean, landscaping or upgrading your front door. You’re more likely to get a good price when your house is looking its very best.
Appoint a local real estate agent
Find a great, knowledgeable real estate agent in the local area who can handle the sale overseas. Appointing a trusted realtor could mean the difference between a successful selling process and a stressful ordeal!
They will understand local market nuances, be well-placed to identify opportunities and have a network of relationships. Make sure the agent you choose is accredited and insured.
You could also consider appointing an international real estate agent. An international real estate agent has obtained special licensing to help clients purchase and sell homes in countries all over the world.
Manage international payments: Compare currency transfer platforms
Selling your property overseas involves large financial transactions when the property transfers. An international transfer moves money electronically from the buyer’s account overseas to your account.
These transactions expose you to fluctuating exchange rates as the value of currency can change at any time.
To get a handle on exchange rates and avoid losing money on the sale it is a smart move to compare international transfer providers.
These providers specialise in sending money internationally and can generally offer a more competitive exchange rate and lower fees than a bank.
Not only can you manage the sale transaction more efficiently, but international transfer providers can also be used to pay for any home repairs and other professional local services.
Choose the right time to sell
Putting your property overseas on the market at the right time can help maximise profits. Consider housing market conditions, exchange rates and even seasonal factors which may influence buy activity and budgets.
Contact your tax advisor
New Zealand tax residents pay New Zealand tax on their worldwide income — including the sale of properties sold in other countries.
Get in touch with your tax advisor to understand the implications of an international sale. You may also be subject to the tax rules of the country where the property is located.