SELLING PROCESS GUIDE IN TANZANIA MAINLAND AND ZANZIBAR

If you are selling a property for the first time or know someone who's been through the process of selling a property before, the concept of selling may seem intimidating at first, and can even ruin a time meant to excite you. That's why we've created this in-depth guide, to assist you throughout the sales process, and show you what's to be expected during the sale, and facts you should consider before putting your home on the market.

1. Find a reliable real estate agent in mainland Tanzania and Zanzibar

The value of utilising the services of an agent throughout the sale process cannot be overstated, as an agent brings their knowledge, expertise, and professional network to the table from the beginning. And ultimately, real estate agents raise the success rate of any sale thanks to their professional attributes.

When looking for an agent, it is crucial to:

• Feel comfortable with who you decide to hire. The more comfortable you feel with an individual, the easier it will be to communicate with that person and speak freely without hesitation, so having a professional yet honest and open relationship with your agent will benefit the success of your sales process.
• Choose an agent with a reputable background and plenty of experience in the field will also benefit the sales process, to make the time spent with your agent productive with no wasted time.
• Find an agent well-versed enough in the real estate market to evaluate your property adequately, so they can offer a realistic evaluation of your property in the current market. For example, they can give an appropriate value according to the property's measurement in m², the property's location, the type of views the property boasts, the quality of the material used to build the property, etc.

We recommend you to ask your agent (or lawyer if need be) to inform you of all the costs and taxes applied during and after the sale. From our experience, a seller's downfall often comes from requiring adequate information about the general costs and expenses they will face during the selling process, and not fully making themselves aware of it. Therefore, ensuring all of the appropriate information is presented to you before putting your property on the market is recommended.

2. Preparing your home for sale

Preparing your home is the most important and demanding step in the sales process, a vital step where factors are considered to estimate if your home will sell and for how much it will sell.

You should pay particular attention to the details of your home, because the better it is presented, the higher the chances of your home increasing in value and, ultimately, attracting more buyers.

Check for minor faults that must be repaired. We also advise you to invest in a fresh coat of paint and floor polishing and, if needed, hire a professional cleaning company to clean your property thoroughly before photography and viewings.

Decorative pieces that are very personal and specific to your taste should also be removed, as well as worn-out pieces of furniture that could tarnish your home's look.

As your agent is experienced with property viewings, they could give you their expert opinion and recommendation on how to stage your property.

3. Listing agreement and exclusive contract

The listing agreement is a document handed by the agent to you to sign, and this will determine factors such as the type of listing agreement entered into, the period the property will be for sale, the listing price of the property, commission terms, etc.

Tanzania has an open real estate market, meaning the vendor can list their property with several agents and agencies. Whoever is the one to sell the property is entitled to the sale commission.

It is a viable option for those willing to be in active communication and coordination with various agents. Working with several agencies or agents on a sale will result in various approaches to marketing your property, which will differ significantly in quality and quantity, depending on each approach.

An exclusive contract allows your property to be uniquely marketed with bespoke branding rather than having various advertisements from agencies in different formats and approaches. Having one marketing stream with specific strategies curated for your property avoids unnecessary miscommunication and misunderstandings between yourself and other agencies. For example, having your property priced differently on several portals.

You must note that none of the options mentioned above is better than the other, and none guarantees the sale of the property more than the other. It is recommended that you choose the option that you feel is best for yourself and your property. Your agent will also be able to give you their professional opinion on what method may work more in your favour.

We recommend you be aware of the marketing assets of your property. That way, you can control how your property is presented on the market and ensure the marketing quality meets your expectations and standards.

4. Marketing your property for sale

Along with your agent's expertise, marketing your property successfully is the main reason a property sells; that is why it's essential to have adequate marketing strategies in place.

Normally, the agent or agency is typically responsible for all marketing expenses, no matter if it is a conventional or exclusive listing. However, when it comes to an exclusive property, there is a higher chance the agent will invest more money into marketing your property, which can increase the likelihood of a sale. Still, vendors can always put their own money forward as a bonus on top of the expenses the agent covers to invest more in marketing and produce better results.

Urban Reality has proudly handled all marketing material in-house and has all the costs covered. If you decide to sign exclusively with us, we will cover all costs and ensure nothing but the best from our marketing. As such, your property will be flawlessly presented, and be sure to stand out.

Our work ethic involves creating unique marketing strategies that fit the property in question, ensuring the marketing assets produced are individual and never replicated.

Our in-house expert team is fully equipped to transform the visual representation of your property. We take professional and industry-standard property photographs and videos to show your property in its best light. We also provide 3D tours executed with the latest technology for those who cannot physically attend the viewings.

5. Viewings to sell a property

Property viewings are imperative to the sale process as they give people a natural feel for the property. Before any marketing actions, the house must be physically prepared. What we mean by this is that the house should be immaculately presented for photographs and videos to be taken. Also, if there is any work being done on the property, this must be made known and finished before any marketing actions take place.

Before the first viewing, let your agent know what you love about the property most and the elements you would like them to highlight about the property when viewing it with a client, as you are the one who knows your property best. It is also recommended that you run through the property with your agent once more, so they acknowledge all there is to know about the property.

Of course, your expert agent will be prepared to take as much of your comments into consideration when passing on your notes to potential buyers.

From our experience, avoiding attending the viewings with clients and your agent is always best. For one, as the homeowner, you are emotionally connected to your property, which means you could over-enthusiastically sell the house, which can come across as not as intended. You could also overwhelm potential buyers with information about the property that may be irrelevant. Finally, if a potential buyer wishes to talk about what they may not like about the property, they will not feel comfortable letting their opinions be known if you are there.

Virtual Tours have become more prevalent in recent years. From our experience, many serious buyers are opting to purchase properties simply by viewing them virtually.

You pay an agent for this, and they are trained to show and sell a house professionally. Leave it to the experts. After all, your agent will let you know how the viewing went and inform you of their initial impressions later.

6. Negotiation with the property buyer

During this phase, your agent's knowledge and experience will come to the fore. Your agent will begin to present you with offers from potential buyers. It is helpful if you have a civil relationship with your agent, as they can help you make a more informed and adequate decision on which offer to consider.

Your agent will also provide feedback on all viewings that took place and compare them to previous successful viewings and sales to help further make a more informed decision on the offers. A good agent will not obligate you to accept a specific offer but rather guide you through your options and offer professional advice.

7. Contract Signing

Once you and your agent have revised the offers, you will make an informed decision on which offer to accept, along with the price. Your agent will then prepare a reservation contract to be signed, which will include all agreed-upon terms during the negotiation. This will then commence the contract signing phase led by your agent. We also recommend hiring a lawyer for this stage of the sale process to revise the contracts and ensure everything goes as swiftly as possible.

Your agent will be in touch with your lawyers to organise the signing of the sale contract between you and the buyer.

Also, Escrow accounts are commonly used when buying and selling property. When a buyer puts down a deposit, and then the full amount, the funds are placed in escrow while they carry out their due diligence checks or property transfer from the seller to the new potential owner. If, for instance, the homebuyer’s report reveals something that could compromise the sale, the buyer knows that their funds are protected. 

Unless exceptional circumstances apply, the reservation fee is typically non-refundable. This is also a binding contract between both parties, meaning you cannot terminate the sale without assuming financial penalties applied by the buyer. The contract is also subject to legal and technical due diligence. This means that if either due diligence has negative results, the buyer is entitled to terminate the deal and be reimbursed with the money paid without any penalties.

8. Closing a sale of a property

Once the initial contracts are signed and the final legal prerequisites are met, your agent or lawyer will walk you through the rest of the process and prepare you to sign the closing documents.

Once the property is officially sold, your lawyer will ensure that all payments are completed and that the ownership transfer has been registered.

Urban Reality Agents will be by your side from the very beginning, utilising their knowledge and expertise in the mainland Tanzania and Zanzibar real estate field to ensure that your sale is completed swiftly and successfully. Our agents will be at your disposal whenever you need them. Our priority is to ensure we meet your expectations, give you the best advice available, listen to your needs and goals, optimise your home, and be there for you every step of the sale.

Take it from us when we say your trust in us will be evident through the results we deliver from the start. After all, our success depends on yours, so let us succeed together!