Selling a Property in Turkey? Don’t Price it in Turkish Lira or Euros.

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Advise to UK based sellers.

I recently sold my property inTurkey but made the mistake of allowing the buyer to make an offer in Euros. When it came to completion, I had lost over £2,000 off the sale price due to currency fluctuations between the Turkish Lira, Euro and GB Pounds. Let me explain further:

The Turkish buyer made an offer in Euros which I accepted. Completion was set for two weeks after the offer was made. When it came to completion the buyer wanted to pay in Turkish Lira using the exchange rate between the Lira and Euro at the time and date the offer was made. The Estate agent advised me that this was normal practise in Turkey and to go with it.  In the time it took to complete the value of the Lira against the UK Pound weakened considerably resulting in a shortfall for us of just over £2,000 off the agreed price set on the day the offer was made.

I realise now that I should have insisted on the exhange rate being set on completion date not the offer date, or insisted on the buyer paying in the currency the offer was made in , the Euro. To avoid all of the above I could have set the asking price in GB Pounds and let the buyer take the risk of currency fluctuations, however I understand that this could have slowed down the sale of the property as everything is priced in Turkish Lira or Euros in Turkey.

Having said that I tried to off set the loss by holding the sale proceeds  in Turkish Lira using a Money transfers company and waiting for the Lira to strenghen against the UK Pound. I have now repatriated my funds back into GB Pounds and given all the turmoil going on over there I'm very happy to have got shot of the property.

To conclude, price your property for sale in turkey in a currency that dosn't open you up to the volatile currency markets but if you do, insist on the rate being calculated on completion date and not offer date. This can go for you or against you but at least you have been warned!

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