The value of any property and the return on investment depends on the amount of attention that will be given to the property, as well as the management methods that its owner follows.
It is worth noting that the concept of good asset management practice has not yet become generally accepted in Cyprus.
Most property owners believe that nothing needs to be done from investing in residential and commercial properties until the time real estate is eventually resold. They believe they will receive the same offers, both in terms of amount and speed.
They are likely to take this view because the Cyprus property market, while a significant sector of the economy, is still 'old-fashioned'.
In the meantime, asset management in western countries is considered a necessary practice that maximizes property value and increases productivity, which explains why so many companies operate exclusively in this field.
For example, WiRE-FS, an independent real estate asset management and advisory firm, says it is time to see further developments in this field in Cyprus as well.
According to Wire-FS, this is especially true now when competition in the real estate market has significantly grown. This means that it has become more and more important for real estate objects to stand out from others.
To get a sense of the matter, Wire-FS offers an example of real estate asset management best practice - the sale of an industrial property.
Unlike the typical process of selling a property in Cyprus, an asset management company takes the following steps:
- Collects and reviews all necessary documents regarding the real estate - title deeds, planning permits, architectural drawings, etc. As a result, potential buyers can see the seller's diligence as it creates a sense of security and professionalism.
- Examines the premises and advises the owner on the necessary modernization of the building - renovation of the property, so that the property makes a good first impression on the buyer.
- Conducts a professional photo shoot of both the premises and the general infrastructure in order to attract the attention of potential buyers when marketing on various media platforms.
- Informs the property owner about the prices for which similar properties were purchased and their initial value. Of course, in many cases the owner's valuation of the property differs from the real value, but it is important to have a real asking price from the start.
- Prepares a list of companies in the area that may be interested in buying this property.
- It contacts all potential buyers, informs them about the sale of the property and records their interest. For companies that do not show any interest, they write down the reason so that later they can return to the owner to find out if there is anything that can be changed or improved, for example, a high asking price, the need to provide more documents.
- Prepares a second list of potential buyers based on the potential change in use of the property in line with the area's urban development plan.
- Provides the owner with detailed weekly reports on every step of the process they follow.
The process is quite difficult, but in the end the buyer is found much faster than if owners follow the old principles. By following these steps, the company helps the owner get the best possible price for their property in the shortest possible time.
By the way, property owners who are proactive are more likely to sell their assets. In addition, constant communication with potential buyers helps them to better understand what they want from the property.
Contact a real estate agency in Cyprus DOM Real Estate, the company will help you quickly rent or sell your property on the island. The company is engaged in professional property management in Cyprus. You can leave your application here, contact a company representative here.