One of the questions asked most of Oceanwide Properties is, “how much is my property in Turkey worth?” The answer depends on many variables. The important questions we ask in return is “how much are you realistically expecting to walk away with from the sale?” and “how quickly are you looking to sell your Turkish home?”
Consider the following…
1 Location. We are all aware of the adage: location, location, location! So true. Some areas around Fethiye are more desirable than others. The foreign market tends to favour the popular resorts of Ovacik, Hisaronu and Calis as most foreign buyers are seeking holiday homes, buy to let investments or to live in the area for extended periods of time. These areas suit all three purposes therefore the properties value tends to be higher. Uzumlu is also popular for foreigners looking to retire to the area, seeking a quieter location or looking for a larger property for their money.
2 How quickly you are looking to achieve a sale? It’s obvious – an overpriced property will tend to sit on the books far longer than an under priced one. A mid-range, competitively priced property will have as much chance of selling as those of a similar nature in the area. At this point it comes down to the marketing of the home and buyers personal preferences. Your property stands a far better chance of selling first if your agents marketing strategy is up to scratch. If they have a good coverage, a good sales team, a decent network of agents and a healthy investor database to attract viewings, your property is likely to sell first. Most serious buyers draw up a shortlist of properties after inspection trips and viewings. It is at this point the finer details come into play – namely price negotiation and what’s included in the sale. An under priced property, of course, tends to attract more interest so is sold and off the market far quicker.
3 How much do you really think your property in Turkey is worth? Have realistic price expectations and gain a valuation from a Turkish real estate agent with a presence in your area (not just one sat in an office in London claiming to know Turkey). The valuation should be based on the current market value of comparable properties in your location at that time. It should then take into account the differences between yours and similar properties that have either sold recently or are on the market. The presentation of the property and overall buoyancy of the real estate market also plays a part in the valuation (negative press about the area or country does drive prices down). The ease of access to transport links and distance from local amenities (mini-markets, bars and restaurants etc.) should also be factored in.
A Special note on properties in areas of Fethiye that appeal to both Turks and foreigners. The demand in central areas of Fethiye and suburbs like Deliktas and Tasyaka covers both the foreign and Turkish market. The majority of central properties are apartments and, although the transport links are excellent, some may have sea views and the interior size of the apartments tends to be larger, they rarely demand the same value as apartments in popular tourist areas. To sell in central areas vendors really need to consider the target buyer. A number of our sales recently have been to Turkish clients. They are reluctant to purchase properties advertised in pounds as, understandably, Turks want prices in their own currency. Herein lies the problem. Foreigners that brought their Turkish property in pounds some years ago normally expect to achieve at least their purchase price back in the sale. The going rate for most of these properties does not depend on exchange rates. It depends again on what similar apartments in that area are valued at in lira. You need to consider the value of the Turkish lira a few years ago compared to the value of it today. An example: Say you purchased your property in Tasyaka from a developer a few years ago. He wanted 125,000TL so simply applied the exchange rate of the time, say 2.5TL to the pound. You therefore paid £50,000 for your home. If we apply today’s exchange rate of 4.5TL to the pound to a Turkish buyer, you are therefore asking for 225,000TL for your property – this is a vast 100,000TL increase, and way above the going market rate. Don’t get us wrong, the property has more than likely increased in value over the years, say by around 16%, but Turks are highly unlikely to pay the lira equivalent of what you are expecting in pounds. This can upset some foreign vendors that ask for a realistic valuation and don’t understand the market fully. A valuation in some cases can be less than a vendor hopes for when in lira and converted back to home currency. The risk we face is advertising one apartment in pounds hoping for a foreign buyer – after all £50,000 for a great 2 or three bed apartment seems a bargain in UK terms, but when the purchaser moves in they then realise they could have got the one next door from a local agent for a fraction of the price. In these cases, if you wish to achieve a higher asking price, you need to wait for the lira to gain value once more (some say it may level off and regain strength after the November 1st election), be realistic about the asking price or risk the property sitting on estate agents books for quite some time.
4 The condition and presentation of your property. Properties in good condition and presented well will attract more interest, a higher price and in turn will sell faster. Many potential buyers come via the internet so it’s vitally important to attract that all important click through to listing. Make sure you supply us with attractive photos or that we take them for you. Ensure your property isn’t cluttered, that there is no one lurking in the background of photos and that the all important exterior shot is taken on a clear day with blue skies and a filled and attractive pool if you have one. The photographs and the description are often what sells your property in Turkey and attracts the potential investor in the first place. If they are sub-standard, you are unlikely to attract interest, a viewing or the asking price.
5 The market temperature. Fethiye is currently a buyer’s market and as such driven by what buyers are willing to pay for the properties in the area. Thankfully, despite Turkey’s political uncertainty, there are still many investors out there. We came back from A Place in the Sun exhibition feeling very positive about the real estate market in Turkey and with a good number of potential investors lined up and inspection trips booked. Although current political circumstances have deterred some, it’s obvious that others are seeing the rock bottom value of the lira as an opportunity (read “Turks living abroad are heading home to buy properties”).
So what really is the value of your property in Turkey? Remember it’s in an agent’s interest to get you as much as possible for your home. It is however pointless agents giving you an unrealistic figure and advertising a property that is well overpriced as it simply won’t sell. If a property is marketed too high it will gain little interest and sit on the books for months, even years, which is of no use to you or the agent. The reality is that your property in Turkey is only worth what buyers are willing to pay for it in the current market. If you are looking to sell your property in Fethiye please contact Oceanwide Properties for a free valuation.
Further reading from Oceanwide Properties News:
(Image Credits: Lead image by Mike Moz, Scales by Images Money both at Flickr)