How to ensure your flat has good resale value

Potential buyers appreciate basic furniture fixtures in the kitchen and living room and are likely to pay a premium for such ready-to-use services

Mumbai-based Salil Joshi, 30, is worried. His society had received a letter from the Brihanmumbai Municipal Corporation saying it planned to build a crematorium in that area, just a few hundred metres from the building premises. Joshi's relatives suggest he, with his wife and a three-year-old daughter, shift before the area loses its value.

While some face hurdles in getting good resale value for their flats, some struggle to merely sell the property. Real estate experts say a flat might not have good resale value if there is a public toilet or a crematorium in the vicinity or if the building has a bad approach road.

Bharat Dhuppar, chief marketing officer of Omkar Realtors & Developers, says while nothing can be done about the location and structure of the building, for good resale value, one could definitely work on the home interiors.

Get an agent
First, know the current rate in your area. You may need a good real estate agent to help sell your flat. However, it isn't a question of selling alone; one has to ensure it is sold quickly and the rate is better than the prevailing one. Therefore, hire a professional agent with good contacts. Also, informing the maids and guards in your premises could prove helpful. Agents usually charge one to two per cent of the transaction value as commission. This, however, is negotiable.

A compact kitchen
It is best to remodel the kitchen and the bathrooms. Most women judge a house based on how compact and useful the kitchen looks. If it isn't spacious, ensure you have dedicated space for daily-use electronics items such as a microwave-oven, a mixer-grinder and a washing machine. To give it a modern look, one could consider furniture fixtures for these. Modular kitchens are becoming popular, as these make the kitchen look bigger; all unwanted items can be stashed away in stylish drawers. "You can get these custom-made for anything upwards of Rs 30,000," says Vyomesh Rao of YMS Consultants.

"Basic wood-work and kitchen fixtures could fetch you 5-15 per cent more than the actual resale rate in your area," adds Dhuppar.

Fix problems
Don't leave repair work for the new buyer. This would leave a bad impression, which might result in lower resale value. Plumbing and lighting problems are common and people often avoid resolving these. As a buyer would spend a huge sum on the house, he/she wouldn't want unnecessary overhead expenses. Basic changes in electrical wiring and fixing taps and fittings could cost you Rs 20,000-50,000.

Upgrade interiors
"On an average, people spend Rs 100-700 a square foot on beautifying their house, including on interiors and upgrades," Dhuppar says.

A spacious living room and a compact kitchen improve the image of a house. Get rid of unwanted or broken furniture, as these occupy space and make the house look smaller than it is. One might also consider painting at least those parts of the house that look shabby and are probably putting off buyers. For a one bedroom-hall-kitchen flat, basic paint work would cost Rs 20,000-30,000.

Ashutosh Limaye, head (research) at Jones Lang LaSalle India, suggests one keep the receipts and bills of all such repair/renovation work as proof of the amount spent.

Ready documents
If the house was bought on a loan, ensure your loan papers are in good condition, as potential buyers would need to take a look at these. Produce all loan-related papers and provide their photocopies. Obtain a no-objection certificate from the society, as this would indicate the house is ready for sale and the seller has no dues towards the society. "Good documentation takes away stress, making a customer more confident about buying a house," says Limaye.

Keep it clean
Tushar Savdavkar, a Mumbai-based vaastu consultant, says keeping the place clean is the first step towards keeping negativity out. Therefore, even if you aren't staying in the house, ensure it is clean. A clean house, one that has natural light, has a positive impact on the buyer.

Niranjan Hiranandani, managing director of Hiranandani Group, says, "Small changes in the house, coupled with good maintenance and hygiene, could definitely attract potential buyers willing to give a premium."

Customise, but don't overdo it
Those who have extra space such as balconies have an edge, as balconies and store rooms act as add-ons. If you don't have a great view from the house, try enhancing the look of your balcony with plants and flower beds, as these provide a natural and soothing effect. If you have a dry balcony, convert this into a small storage room by separating it with a sliding door. The extra room would be a great selling point.

So, keep it simple, yet useful.