The Indian real estate market will soon be a seller’s market as the real estate law has come into force. With the market becoming more organised, the number of new project launches has already gone down by 40 per cent in the past six months and the market movement shows that the scenario of oversupply will be a history sooner than later. This will present opportunity to investors who were waiting to sell their properties at a premium price. The prime condition though is that these properties need to be ready-to-move-in.
If you meet this condition, there are all the possibilities that you generate impressive capital gains with superior return on investment (ROI) on your property. While you may find yourself in a much better position to negotiate a better deal as a seller, the below-mentioned tips will help you better the value proposition and execute the transaction smoothly:
Hire a reputed property broker
Thinking of not hiring a broker after receiving direct enquiries from prospective buyers, because of the fee charged? Remember, you can’t single-handedly manage the entire property sales cycle which may go on for several weeks. Dozens of prospective buyers will come for site visit and ask numerous questions.
Even if you handle the pre-sales part dexterously, the sales and post-sales parts will involve a lot of technicalities and legal documentation. By hiring a reputed broker, you will able to manage the whole transaction process more efficiently.
Do not overprice
On receiving positive responses from prospective buyers, many sellers up their property prices by several notches. That’s not a good practice. First off, list-out all the reasons why one should consider paying more for your property than the other ones that are identical to yours.
At times, buyers and even brokers start avoiding a property if they sense that the seller has overpriced the property. It might impact your property negatively and prolong the sales cycle. Moreover if your property stays long enough in the market, prospective buyers will wonder what’s wrong with it.
Factor-in time cost
Sample this: There is an apartment worth Rs 50 lakh up for sale. The owner gets an offer from a buyer willing to buy the apartment immediately at Rs 49 lakh. However, the seller turns the offer down and waits for other buyers. This further pushes the transaction further for another six months or so.
Now even if we consider the rate of regular Fixed Deposit (FD), it comes to nearly seven per cent a year. That means, the capital received by selling the property earlier at Rs 49 lakh could generate at least Rs 28,500 a month. But after waiting for six months, if a property is sold at Rs 50 lakh, the seller is on a losing end. Isn’t it?
Therefore, do not turn down considerable offers and keep waiting unless you have very strong reasons to do so. Factor-in time cost.