How to Sell an Island
Recently in our blog we talked about the main reasons that motivate people to buy an island. However, there is another side to a sale and purchase agreement. This article is aimed for those who plan to sell an island shortly or are already working on this issue. Let’s talk about the main problems of the island market and some things that will help you sell an island faster and more profitably.
Sell an island = give up the dream?
Buying an island is a complicated process, so only those who have a great desire and a clear vision of their own island dare to do so. However, the actual purchase is only the smallest step, after which the owner will have a large amount of work to do. In the process, it may turn out that an island requires more time and effort than the owner can give, and the benefits do not always justify themselves due to high costs. Anyway, selling an island does not mean giving up your dream. On the contrary – it means making the dream come true and moving on. In addition, island property is often bought specifically for further resale.
Be that as it may, you are here to learn where to start selling an island and what to pay attention to.
How much time does it take to sell an island?
It may take 2 to 5 years to sell an island on the international market and about a year on the local market. These are average data, so there are significant deviations from these figures, because for the most part, success depends on numerous factors that cannot be influenced by the seller, the agency or anyone else.
Problems faced by island sellers
Islands are elite property with “elite” problems. Analyze them to better understand the sales specifics.
- Limited number of potential buyers. This obvious factor is inherent in all goods and services of a high price category. The higher the price – the fewer buyers willing to pay the indicated amount. However, about 300 islands are sold in the world every year, so you should not have doubts about the demand for island property. It may take longer to sell an island than expected, but everything will work out well with the right approach.
- The difficulty of determining the island price. As the practice of island companies shows, the value of an island determined by the owner is often biased and unjustified. This is due to the special attitude of the owners to their land of this type, the development of real estate which then may not be appreciated by a potential buyer, and simply a lack of understanding of the pricing process. Thus, an item that actually costs 3-4 million dollars appears on the market with a value of 10 million dollars and can stay without a new owner for a long time.
- A large number of agreements concluded outside the market. You can explore the market, look for competitive offers and assess your own chances of selling an island, but in this case you have to understand that many transactions do not go through listings, but are sold by brokers outside the market.
- Complex bureaucratic system. Each country develops its own legislation to regulate the lease and sale of islands. The laws govern the possibility of selling islands to the country’s citizens and foreigners, the purchase and sale procedure, the peculiarities of construction, taxation and fines for owners, etc.
After analyzing some problematic aspects of selling an island, it’s time to talk about what will help you sell your island at a reasonable price much faster.
How to sell an island profitably
Selling an island is not a week-long process. In rare cases, the search for a buyer lasts for decades. However, you can avoid such a lengthy process if you approach the task the right way. Here are some tips to sell a private island faster and more profitably.
- Familiarize yourself with the law. Each country has its own requirements for the purchase and sale of islands within its territory. The best solution is to learn all the nuances first to understand your particular situation.
- Find good brokers. Here, it should be noted that not all brokers can control the process of buying and selling private islands. This is a rather narrow market of the high price segment and with a lot of unique nuances. Opt for local brokers specializing in the islands, or international companies. Additionally, they will help with the assessment of your property.
- Get the support of a lawyer. To properly draw up paperwork and transfer ownership to a new buyer without any risks for both parties, you just need the services of a competent lawyer. It is good to know the basic theses of the law, but it is much better to be supported by people who will provide you with full legal accompaniment and advise you at every stage of the sale.
- Place your island on the target resources and our website. Actually, you can do this as the first priority. Currently, we are actively promoting the website, as well as developing convenient functionality for island listing and buyer search. Thus, you can apply for legal and realtor services when you already have potential buyers.
Unfortunately, we are not a brokerage company and cannot assist you directly in buying and selling islands. You need to find professionals you can trust and listen to when selling your island. However, we will help you within our area of expertise. We are developing a simple and extensive island catalog and a convenient admin panel for each seller. You will be able to present your private island on the international market and find potential buyers without spending a lot of effort and time. We will also be useful for reseller companies.
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Sell your island
Selling an island differs from selling elite mainland real estate because of the additional risks and multi-component assessment of such purchase benefits. So be patient and do your best to make your offer seen and appreciated by potential customers. And we will help you with that.