The real estate market is still finding its way back from a sluggish market with a huge inventory. In a market scenario like this, selling a house could be a time-consuming process. A house is one of the biggest investments for anyone and pricing it correctly is important to fetch good returns from selling it.
Here are a few things you must keep in mind to grab a good deal for your house:
Prepare Your House For Sale
Before you post an advertisement regarding your house or have customers come over to see the place, you must clean up the house, put a fresh coat of paint and make necessary repairs. You can also take professional help to set up the place. A well-maintained property goes a long way, giving an edge over other competitors in a slow-paced market.
Keep The Taxation Aspect In Mind
If you sell a property in less than two years, the profit on such transaction is considered short-term capital gain (STCG). On the other hand, selling a property after holding it for two years is considered long-term capital gain (LTCG).
While STCG is added to your taxable income and taxed as per your applicable slab, LTCG is taxed at 20 % with indexation benefits. You can save the tax outgo in LTCG by investing in suitable tax saving instrument or by using the amount to buy a residential property within the prescribed time limit.
So, avoid selling your property in a short-term period unless there is an emergency. And, identify the reinvestment options in advance to save LTCG tax outgo.
Set A Realistic Price
The price you set creates all the difference in a not-so-upbeat market. While an underprice will fetch you low returns, an overpricing can chase away customers. So, before you decide on the price, look at various online property portals and ask around to know the average price prevailing in that area. Compare your property with other properties and come up with a realistic price.
Keep All Documents Handy And Clear The Dues
Once a customer makes up his mind, no time should be lost in getting documents ready. All your papers should be in place before you start showing your property to customers. If there are any dues in terms of property tax, municipal tax, water bill or electricity bill, you must clear them off. The No Objection Certificate (NOC) should be obtained from the society before you set your property on sale. If you have an outstanding loan amount on your property, discuss your plan to sell the property with your lender and follow necessary instructions to clear off the loan amount.
Go For A Broker If Need Be
Not all inquiries are from potential buyers, so you need time and effort to respond to everyone and figure out the ones with genuine interest. If you don’t have the time or bandwidth to show around, hire a broker to do the job. He will also take care of the paperwork and negotiations on your behalf. You can conduct a brief background check on the broker and talk to him about his fees before you enter into an agreement.
Do Not Take Too Long To Sell
Once a property is listed for sale, it is often not put on rent. So, if it takes too long to get sold, the property owner loses out on the rental income over a substantial period of time. To avoid such cost escalation, it is important that you set a timeline for selling the property. Also, the price of the property could change over a period of time.
Selling a property like any other investment instrument requires research and planning. Follow the above-mentioned tips to get a good deal for your house. And, the factors you must consider to do your research would vary based on the area in question.
Additional reading: Home Loan Handbook: All Questions Answered
BankBazaar is a leading online marketplace in India that helps consumers compare and apply for Credit Cards, Personal Loans, Home Loans, Car Loans and insurance.