Tips for Property Sellers

Most of the property sellers have queries regarding the determination of perfect asking price for their properties.

Its very important to analyze even the small factors so as to know the best price of your property before you quote it to some one.

Read the following points which may help you to understand the "Why, how, what" about the pricing decisions.

Know your property very well

To know your property very well before you start to proceed, kindly review following factors:

• Present status of Property

Whether rented, empty or occupied by yourself. A vacated property has good influence over buyers as they know they can occupy it without waiting for long.

So, if your property is vacated, you can reflect this as an advantage. If you are living in the said property, then it should be made clear to the buyers the time for vacating it. The more time you take to vacate it, the weaker you are in front of them.

• Location

Its the very first factor that let you ask a perfect price for your property. Analyze the area surrounded very well. Look up for any foreseen activities in or around the area like upcoming metro stations, shopping malls, service centers etc. You should know about the circle rate for the area.

• Title

GPA, Sale deed, mutation etc. It let you find a buyer accordingly and you would be able to know how much time you can provide the buyer to pay you full payment. If you are about to give an advertisement then you should clearly mention the title of your property and also cite there whether there is availability of loan or not. This would save time for you and for the buyers also.

Its recommended that title or other documentation related informations should not be hided in any case.

• Surroundings

It has a great impact over your property. Mention the necessary distances like hospitals, schools, airport, railway station, shopping hubs, service centers etc.

• Pricing 

The factors present above should be analyzed carefully so that the seller can decide a price to ask for his property. Remember that your property should not be over-priced under any circumstances as it could lead to loss of buyers making the property unsold for a long time ( say more than 1 or 2 years).

 Usually if a property is available to sale but can't be sold out for long time, gets less price than expected one.

This has somehow negative impact to buyers making an advantage readily available to them. Therefore, it is highly recommended that sellers should be careful when they proceed to sell a property.

To ensure this, they should not over popularize the information of selling of their property.

• Involving a consultant/broker 

Its always useful to appoint a consultant or broker to proceed to sale a property. For this service they charge consultation fee also.

They let you know the correct price for your property. They have several buyers also. So, a seller can look up for consultancy services also. This would not only save time, but also help you to assist your buyers conveniently.

Its better to get an agreement with the broker you appoint citing the brokerage amount decided to pay out and his/her duties that should be accomplished under any circumstances.

Tips for Property Buyers

Before get started to search for a property , following points should be kept in mind :

1. Budget

It includes what amount is available to you + how much you can have via home loan etc.

More than 80% buyers need to apply for home loan.

Having approved home loan is also a big issue. Most of the people, generally, don't know how much they can get of loan amount.

so, in order to estimate you budget, you should have to know about your loan capacity. This can be done by asking your bank.

Generally, just to have an idea for this, one can get this information by simply taking 5 times of his/her annual income.

For example, if annual income of a person is Rs.3,00,000/- then Rs. 15,00,000/- is the loanable amount.

However this value can be enhanced if you have more assets or already have another property and can be reduced to some extent by re-evaluation of your liabilities, other repayments for other loans etc.

2.Location

Its obvious that everyone wants to have home nearby a good surrounding from where one can cover his/her necessary distances easily without expensing too much of time.

Its actually the budget that decides where to go. So, shortlist the location as per the budget prepared by you.

3.Title Search

Yet another very important task. Its important to know about the title of a property before you finalize it to buy. Knowing about title would let you know about the safety, building by laws, rate, ownership etc about the property. One must ensure these characteristics before buying a property to avoid any misleadings.

 There are generally two kinds of documentation for ownership of a property:

• General Power of Attorney (GPA) - In case of GPA, a person is not eligible to apply and to get approved home loan. So, if you are planning to think of buying such a GPA ownership property, then you need to pay whole amount of said property by your own. 
• Sale deed / registry by paying stamp duty to the concerned development authority 

4. Pricing per space

Pricing of a property is an outcome of the kind of constructions done, materials used, carpet and super area of the property, surrounding, floors etc. Generally property available at Ground floor is costlier than second and third floor.

While talking about pricing, one should review about the circle rate of the properties in a particular area.

5. Finalizing the property

Before finalizing a property, one must ensure  the facilities provided at the premises, the surroundings, basic amenities, transport facilities, security personnel etc.

6.Negotiation

Its the thing that can't be taught. It depends upon the situation varying from individual to individual.

• negotiating with builders - there are some time phases while negotiating with a builder. If you are finalizing a property which is under construction and most of the units are available for sale or there is a time gap of up to 6-9 months ( in local area) to get your property as ready to move in, then you can easily negotiate up to 3-4 lakhs ( if asking price ranges from Rs.25 Lacs - 80 Lacs).                                                                                                                                                                                                                     However, if you see that most of the units are available as ready to move in, only final touch ups are in progress, then you can negotiate up to 2-3 lakhs only.

• negotiating with property owners/sellers - before you start to negotiate with them, you should have done your homework about the concerned property. 

Always ask the seller :                                      

• why you want to sell your property                                                                                                  
• is there any kind of liability left to pay off for this property                                                                     
• can you provide us the chain of sale deeds or GPAs                                                                             
• is this property mortgaged to some bank etc                                                                                         

Having known these answers would let you talk easily for negotiation. Generally its not easy to negotiate with property owners to a higher extent than what we do in case of builders. So,  ask them first before you serve them with your offering price. Its seen that more than 90% people negotiate with owners or sellers upto 2 lakhs only.

7. Paper work / Documentation

Never delay for this immediate required action.

Get "agreement to sale and purchase" right after you pay your token amount.

If any part payments are decided to pay off , then do not forget to get , " Part Payment Receipt" affixed with revenue stamp and having signed up with two witnesses.

At last get your property registered or GPA.

Always keep records of proper documentation. This will help you when in near future you would like to sale the same property.

8. Involving a broker/consultant/third party approach

Getting involved a broker or consultant saves time and the head aches too.

Consultants are the professionals who provide you their services and for the same they charge a consultation fee also.

Its better to appoint a broker as they know better about the market rate and the paper work of the properties. They do the entire activities to execute your purchase completely.

It would be convenient if the buyer gets an agreement with a broker citing his/her duties to be carried out by him and the brokerage amount should be decided before you proceed with him to avoid any kind of conflicts.