Just like buying a property, selling a property is also a challenge since it involves equal amount of legalities and paperwork. But on the other hand, selling a property will not just fetch you good returns but will also relieve you of hefty tax payments. Perhaps, not every seller is as experienced as a real estate agent in terms of making the most of a property sale. Here are some handy tips a seller can follow while selling his property.
Important dos while selling a property
* Hire a competent real estate agent / company
How many of us seek the services of a real estate agent to sell our property? Surprisingly, in the want to save money (the real estate agent’s commission), we end up losing potential buyers and might also experience short term capital losses. Hiring a real estate agent will not just get us an apt buyer, but will also lead to a smoother property transaction and negotiation of the right amount. One should ensure that he/she hires a real estate agent or company with a good track record through references from friends and family.
* Effective property marketing
You might think that hiring a real estate agent or putting up a ‘for sale’ sign is all you have to do to sell your house. No doubt, doing just this might get you buyers, but might not fetch you greater returns from your property sale. To get a better selling price for your house, you should use all the marketing options available. This includes classifieds, pamphlets, internet advertising, other digital marketing techniques and word-of-mouth.
* Have all your property documents in order
Have all the documents in order before selling your property. A missing document could lead to delays in closing the deal and in some cases may even lead the buyer to cancel the deal. Most of these documents are the same that you acquired while buying the said property such as the Sale Deed, Khatas, Mother deeds, etc. One must bear in mind that the prospective buyer could have more than one property in mind. In case of a missing document, approach the concerned authorities and acquire the same.
* Make sure all bills and property taxes are paid up-to-date
Before you decide on selling your property, you should ensure to repay all the encumbrances, bills and taxes against the property thereby ensuring that there is no outstanding amount left to be paid on the property. Any unpaid bills and encumbrances may put the deal on a back foot. Be transparent about your property details, the pending loans (if any), costs the buyer may have to bear, conditions of sale and other property related facts before selling it to the buyer. Also let the buyer know about the property surroundings, the payment mode etc.
* Negotiate
One needs to know the right tactics in order to negotiate and get the right deal. In fact, as a seller you should be prepared on the amount that you will compromise when compared to the sale price. Avoid being obstinate about the selling price and instead listen to the buyer and put your points across as to why you have priced your home in the given range. However, try effective ideas to convince the buyer and do not compel the buyer into buying your property.
* Hire a competent lawyer
It is advisable to hire a property lawyer to protect your interests in a property deal. Avoid using the services of the same property lawyer that your buyer has engaged. A property lawyer will vet the Sale Agreement / Sale Deed and ensure that there are no loopholes.
* Finalizing the deal and registering the property
Once the buyer is ready to buy your house, you have to fulfill an array of formalities. Begin with signing a Sale Deed / Agreement stating that you have sold the property to the buyer. The same document also confirms that both the buyer and you have affirmed to your obligations in written. Once all this is done, the Sale Deed / Agreement should be registered.
* Check the contents of the Sale Agreement thoroughly
When the buyer hands over the Sale Agreement, you should ensure that the agreement protects your interest and is in accordance with the terms and conditions agreed upon between you and the buyer. You don?t want to be duped because there may be instances where a buyer agrees to alter certain conditions of the agreement but does not do so in the final execution. Therefore, we suggest you act prudent and check the agreement before signing.
Important don’ts while selling a property
* Do not hand over the original documents before registration
Do not hand over the original property documents before the registration of the Sale Deed. Instead give the photocopy of the documents with a watermark stating ‘not for sale’. However, you should check the Sale Deed personally before signing it and should keep a list of all the documents handed over to the buyer along with an acknowledgment of the same, for future reference.
* Avoid fixing/expecting higher returns
You must have bought your property for quite a considerable amount of money but you cannot expect an unrealistic profit. Yes, you must consider the appreciated value of the property, but you should know that your house will be worth only the amount the market is ready to pay. Pricing your property too high will only discourage buyers from even looking at your home, which in turn will result in your property lying vacant for months. Instead you can ask your real estate agent about the trending property prices and accordingly set a good price.
* Avoid getting emotionally attached to your home
It is quite natural that you get emotionally attached to your property over the years, and might feel reluctant to let it go. You should remember that your choices of decorating your home might not coincide with the buyer’s. So ensure to keep your home neutral at the time of property showcasing.