Why did GTSA develop the vendeRAPIDO® selling process for selling real estate in South America?
There are two reasons. To speed up the selling time and maximise the properties value
Current Market Realities
South American real estate markets are mainly lightly regulated and highly informal. This means vendors are at a substantial disadvantage when they come to selling a property within a reasonable time frame. Traditional times of sale are measured in months and years. Consequently, transaction costs are among the highest in the world. With the globalization of real estate GTSA saw an opportunity to add value to our current property consulting services by offering vendors an option for selling quicker and for more money.
There have been, up to now, only two options when selling real estate
With a list price
Or without a price
Selling with a List Price: Selling with a list price is appropriate when there is ample market evidence to give you enough information to price within 5% of what recent sales of similar type properties have sold within the past few weeks. The real estate market is dynamic, moving up and down over weeks and months and overpricing will generally lead to a stale property that will be undersold after months or years in the market. Traditionally due to an informal market, “middlemen” called “independent brokers “ would scalp other brokers’ listings, adding a margin for themselves on the top. This is why you see the same property listed at different prices on different websites. The other characteristic of this market is “professionals,” ie Notaries or Employees who know the vendor and often try to act as informal brokers themselves despite having had no sales training or experience. This usually results in a big mess.
Selling without a List Price: Selling without a price usually takes the form of an Auction or Tender. In a sophisticated real estate market with price transparency, for example, Sydney, New York, and Singapore, most properties are sold in 3 to 4 weeks. These methods give property owners a liquid market to buy and sell in. However, this is not the case here, where considerable mistrust, lack of bridging finance and illiquid market conditions caused by government banking controls etc, all make these options problematic except in specific locations and situations. Ie Chile, and Uruguay.
The Hybrid option: vendeRAPIDO® Developed by South Americans for South America
Because of the above-market realities, vendeRAPIDO® was developed by us to assist those vendors who were serious about selling their property. It is not suitable for speculators, of which many vendors are not committed to selling. A vendor using vendeRAPIDO® to sell is very serious because he has a vested interest in the process.
vendeRAPIDO® is a hybrid born from the Tender /Auction process to suit local selling realities.
It has the same advantages as an Auction or Tender but none of the downside when the market is illiquid.
The benefits of selling using vendeRAPIDO®
A strong sense of Urgency: The vendeRAPIDO® deadline sets a finite selling period and creates a sense of urgency among buyers.
Buyer Competition: A vendeRAPIDO® creates the conditions for buyer competition – which can lead to a premium price being paid.
Confidentiality: The result of a vendeRAPIDO® is private and confidential to the vendor.
Time to Consider: You have a fixed period to decide which offer to negotiate.
This can be important if there are several parties involved in the decision.
Flexibility: A vendeRAPIDO® allows you, the seller, to be more flexible with the terms and conditions of the sale e.g. You choose the possession date, terms of payment, and length of settlement.
Level Playing Field: Because the property cannot be sold before the closing date, all interested parties compete on a level playing field.
Tracking Interest: All salespeople can register potential buyers for your property via a centralized database, so we can track interest.
No Price Limitations: By marketing, without a price, you are never limited by an asking price that is too high or too low, so you can attract a wider range of buyers. However, where the property has been in the market before, and there is considerable misinformation about it, it is best to use a base price.
Feedback: Your GTSA salesperson will provide regular market feedback to assist you in establishing the selling range of your property.
I trust this is clear, but please ask if you have any questions.
Geoffrey W W McRae – CEO and Marketing Director
Gateway to South America – Argentina – Brazil – Chile – Paraguay – Peru – Uruguay