Earn a premium by making your property presentable.
The festival season is not only a good time to buy a property. It also offers great opportunities to sell, primarily because buyers are likely to be in a rush to seal the deal. Consequently, you can earn a good premium.
Determining the price, usually, is simple. The last deal struck in the area, the details of which can be obtained from brokers or neighbours, gives a fair idea of the price range.
Remember, if you are selling an old property, the price will be lesser than what an upcoming construction will fetch. But again, pegging the price too low against a new underconstruction property may not be the correct way. The solution is to seek sale details of a property that is of roughly the same age. Importantly, before you put the property up for sale, do some work on it to create a good impression on brokers and buyers.
Who wants it most
First, speak to neighbours. Property experts say they are likely to pay a little more when they wish to expand. “In such a scenario, the seller gets an extra five per cent than the prevailing rate,” says Rajesh Mehta, a broker in Mumbai’s western suburbs.
Also, they may wish to have a house for their sons, daughters or other relatives. If your property is in a prime area, you can also get corporate buyers, who will be willing to pay a premium.
Selling your property to a neighbour or a society member will not only get you a better price but also save you the brokerage.
At present, the brokerage is two per cent of the transaction amount. For a higher amount, say above Rs 2 crore, it is negotiable. The minimum brokers charge is one per cent, where the commission is taken from both the buyer and seller.
Brokers should be your last resort. Besides the cost, you may face other problems. A typical scenario: A broker paints a rosy picture and promises a certain value. Later, he/she dilutes the offer, citing different reasons.
The best way to find a buyer is by giving an advertisement or listing on a property website. It does not cost anything. In addition, you can go through the buyers’ list on these websites.
Presenting the house
Visible problems such as dampness or moisture on walls can put off buyers. Put a fresh coat of paint and polish the doors and windows.
The expense is Rs 5 a square foot. For a normal two-bedroom-hall-kitchen, it can come to Rs 15,000-18,000. Polishing will cost another Rs 2,000-3,000.
But the trick is not to go overboard. Any buyer will like a house which he can do up without incurring much expenses. Your idea should be to present a clean and frill-free house. “In addition, do not try to negotiate the price based on furniture upholstery. The buyer will ask to take these along with you,” says Pranay Vakil, chairman, Knight Frank India.
After the renovation, find a unique feature about your property which can entice the potential buyers. For example, a terrace or an upper floor with a view can be an additional attraction.
Keep the documents ready
If everything goes well and the buyer is willing to pay the token amount, be ready with the necessary papers. Documents like clear titles and no-objection and no-dues certificates should be kept handy. Remember, it is festival time. Buyers may want to strike the deal quickly. Keeping them waiting may not fetch a good premium.