Real estate in Bali is booming, but not everyone knows how ripe the market is for sellers, especially foreign investors.
Right now, fewer homes are for sale than before, creating a unique opportunity for those ready to list their properties.
So, why is 2024 the perfect year to sell your Bali villa?
In this post, I’ll explain why the Bali real estate market is so promising for sellers in 2024. I’ll show you how the current market trends create ideal conditions for selling and, most importantly, how you can benefit from these conditions.
Lastly, I’ll guide you through the best strategies to sell your property quickly and at the best offer, ensuring you get the best return on your investment.
Ready to know more? Let’s get started!
What makes the 2024 seller market?
What makes 2024 a good time to sell real estate in Bali?
The Bali real estate market is doing well right now. As more tourists visit Bali, there is a high demand for rental homes.
The Indonesian government also has policies that make investing easier for foreigners, which has created a good market for sellers. One such policy is the Golden Visa.
Interestingly, the government has decided not to charge value-added tax (VAT) on home purchases up to Rp 2 billion ($126,000). But, this tax break will last until June 2024.
Another reason 2024 is a good time is that there is low inventory and rising demand for property right now.
With not many homes available, buyers are eager to find a home. This means sellers can get higher prices and sell their homes faster.
There is not enough supply for the high demand of houses.
Source: Low inventory in 2024
Going back to 2019, the last normal year in the housing market, there are nearly 40% fewer homes available now:
Source: Low housing supply in 2023
The benefits the seller can get:
Now that we’ve covered why this year could be a great time to sell your property, let’s explore the benefits you can get.
1. You still won’t have much competition when you sell
When fewer homes are for sale in Bali, you won’t have as much competition as a seller.
This is great news for you! With fewer options, buyers will be eager to find a home that meets their needs. This means your property will likely stand out and attract serious buyers.
2. Faster sales
In a low-inventory market, homes tend to sell faster. Buyers searching for a while are excited to find a property that fits their criteria. As a seller, this can lead to a quicker sale, reducing the time your home spends on the market and the associated costs.
3. You can sell it for higher prices (better offers)
The limited supply of homes in Bali’s real estate market gives you, the seller, a significant advantage. With fewer properties available, potential buyers will likely make competitive offers on your home.
This can result in multiple offers, allowing you to sell your property at a higher price and potentially yield a greater return on your investment.
4. Increased property value
When there is a shortage of homes for sale, it can boost the overall value of your property. Buyers often pay a premium for scarce homes in desirable areas like Bali.
This means you may be able to sell your home for a higher price than you would in a more saturated market, leading to a more substantial return on your investment.
But with all those benefits, you must know how to sell your property and stand out among your competitors.
How to sell your property and meet the prospective buyer
Now, let’s explore how you can market your property and possibly get a higher return on investment.
1. Correct pricing
Pricing your home correctly is essential when selling in Bali’s real estate market. In a hot market like this, it can be tricky to find the right balance.
While you may be able to get higher prices, you need to ensure your asking price is in line with similar properties on the market.
Pricing your home too high can backfire. Buyers will likely be more attracted to lower-priced but comparable homes, causing your listing to languish.
So, how can you find the right price?
Start by researching listings online, including on platforms like Airbnb, property websites, and Facebook groups.
Ensure the homes you’re comparing have features and amenities similar to your property. You should also consult a local real estate agent, like Bali Villa Realty, as they can provide insights on average prices in your desired area.
Location is a significant factor in pricing, so getting an expert’s advice can help you set the right price and sell your home faster.
2. Advertise it through various social media platforms
You’ll want to advertise your Bali property through various social media platforms to reach prospective buyers. This gives you a high chance of being seen by the right audience.
You can share your listing on the Facebook Marketplace, in local expat community groups, and anywhere relevant buyers may be searching.
Working with a local real estate agent can also streamline your advertising efforts.
They can list your property on their website and offer it to their network of investors and buyers. This is usually done by signing an agreed-upon commission fee.
3. Have the paperwork ready
When selling your property in Bali, it is crucial to have all the required documentation before putting your home on the market. This will help ensure a seamless transaction and avoid any delays or complications down the line.
Some of the key documents you’ll need to gather include:
- Ownership Certificates: Make sure you have a clear title to the property, including the land certificate (Sertifikat Hak Atas Tanah) and the building certificate (Sertifikat Hak Guna Bangunan).
- Tax Records: Gather any recent tax documents related to the property, such as property tax receipts (Pajak Bumi dan Bangunan) and income tax records, if applicable.
- Building Permits: Ensure you have all the necessary building permits and approvals, such as the IMB (Izin Mendirikan Bangunan), demonstrating the property was constructed legally.
- Lease or Rental Agreements: If the property is currently rented, make sure you have copies of the lease or rental agreements and documentation of any security deposits or advance payments.
- Financial Records: Compile financial documents related to the property, including utility bills, maintenance costs, and any outstanding mortgages or loans.
Conclusion
Selling your villa in Bali doesn’t have to be overwhelming. The current low inventory in the real estate market presents a prime opportunity for sellers.
This environment means you can set competitive prices and expect efficient sales as buyers are ready to act quickly.
To start, you just need to understand the market dynamics, set a clear sales goal, and choose effective marketing strategies.
But first, of course you have to own a property in Bali, if you still don’t have any, you have to read this guide to buy property in Bali.
Once you’re set-up, you can adapt and respond to the market to maximize your sales potential.
If you need help marketing your property or finding the right price to sell, our real estate experts are here to help.
