A prospective seller, Karun Vijayan from Chennai is on the lookout for interested buyers. However, he is in a fix regarding the selling price considering there are corporate offices, hospitals, malls, schools and bus stops quite close to his house. He is also looking for proper guidance – what should he watch out for!
Are you in the same plight? Here’s a brief guide-
Do not be in a hurry:
Of late, there has been a lot of speculation in the market- is it good time to sell, is it good time to buy and the likes. Knowing the market trends can be of big help. Sellers sometimes feel that since property market has registered a sales lag, perhaps it is the best time to sell and make the most while prices haven’t dipped too much. This is called distress sales. Do not be in a hurry to dispose your property as there is a way out.
While the capital market was not faring well, the rental market did perform well. In active markets such as Bengaluru, Chennai, Delhi NCR and Mumbai, rental values in fact did rise. This could be one of the way you tackle the situation by putting up your house on rent and enjoy the returns. When the market picks up, you can plan to sell when you come across a befitting deal.
How much is too much information:
It is advisable to be transparent with the buyer. Ideally you should tell the buyer all the pros and cons of buying into your property, information such as neighbourhood, amenities or lack of it etc. However, do not advertise negatively.
Reasons such as the following may work unfavourably-
- You are selling the house because of a recent death in the same house/building (Sounds ominous)
- You ended up in a divorce while living in this house (Gives a picture of being an unlucky place)
- That it is hard to put up this house on rent (Sounds like a bad investment)
- That you are looking for a buyer from a particular caste/community (Does not put across a good impression)
- That you do not mind not selling in a long while (Gives an impression you may keep an interested buyer waiting)
- That you are too keen to dispose the property due to financial issues (That you would be willing to negotiate below market price)
- That many other prospective buyers have rejected the house (Other investors may have seen a flaw)
- Conservative buyers always want to play safe. If you are keen on selling your property, market it well.
Do not depend entirely on the broker/agent/real estate broker:
It may not be a good idea to depend on a broker entirely. While brokers and agents are indispensible especially when you may not be in a position to market your property as widely as they do, make sure you are aware of the market trends as well.“My 3BHK unit near Adyar was quoted in the market as Rs 3,500 per sq ft, grossly miscalculated,” says Nishita Pillai, a marketing professional. “That’s when I realised that the broker was trying to misguide me. He wanted to buy it for less and sell it at a higher price. The various reasons he came up with was that my house was ‘near Adyar and not proper Adyar,’ that the ‘market was faring bad and will continue to do so,’ ‘it is an old house, depreciation has to be calculated accordingly’ etc.”
Do research to stay ahead:
Sharad Amulya still recalls the look on his broker’s face when he could give ready numbers quicker than what was expected of him. “I was trying to sell my house and had done all kinds of research- online and offline. When the broker would give me his idea of the market, I was confident that my house could do better.”
Urban population is going online and therefore even the remotest of information is not hidden. Real estate portals give you an idea about how competitively property prices are listed in your locality. You could always search online to know these as well as to interact with prospective buyers. Although listed values are not the final price, in the absence of any clear market data, these help you understand market nuances.
Make a list of the plus points:
Nobody wants to settle for less. If a buyer is parting with his precious savings, he will make sure that he is putting in his money into something concrete.
It is advisable that you make a list of lifestyle conveniences that your house or its location offers. Vijayan talks of hospitals, schools, hangouts in the house’s vicinity. It adds value to your home and while the negotiation is going on you would be able to pitch better.
Apart from the social fabric, figure out how your home in itself could be a good show. Are the interiors worth a pitch? If your house is fully furnished, has provisions for air conditioning, auto climate adjust, renovated rooms to cater to young working professionals, automated fittings and intelligent lighting, a private terrace etc. Even 24/7 water and power back up can be a big advantage especially in cities like Chennai and Bengaluru where private water tankers are not unheard of. If the locality is well maintained by civic authorities it is a feather in your cap as well.