Things to do when your home is not selling

Things to do when your home is not selling

A house is essential for a decent living. It is a part of “right to life”, a fundamental right. Investment in a house is made to create a permanent asset.

Investment in real estate is also a lucrative business option, more comfortable and predictable as compared to investment in stocks and shares.

House is put on sale for various reasons like:

  • Relocation
  • Speculative purposes
  • Financial necessity/Distress Sale

If the sale of the house is not getting any response, we advise our clients to consider certain factors as mentioned below: 

Pricing: setting the right price   

Setting the right price for home is very important and depends on the market rate. It is necessary to analyse price influencing factors such as the area where the property is situated, demand for the house whether for residential purpose or speculative investment etc. Accordingly, the price can be changed to attract the buyers and should be set to recover a reasonable amount. Reduction in price should be the last resort.

Time of sale:  Postpone the sale

There is a time when selling a house is more advantageous. It is when the demand for home is rising. Rising income, easy credit availability etc. are some factors which influence the demand for house. If the house is not selling, wait and watch the market movement. If the buyer has too many options, better to postpone the sale.

Try other alternatives: Lease or Rent

If the house is not selling, try other alternatives like offering the house on lease or rent. A tenant may be interested, and such a tenant who has a stake in the house will take good care of the property also.

Sometimes the buyers are not interested in immediate purchase as the arrangement of finance might be a problem. An offer of lease attracts such buyers as there is always an option to buy later. 

Advertisement: Best pictures

Ensure that the sale of the house has been properly advertised to reach to the maximum number and photographs of the house show the best features.

Title of the house and updated government records:

Ensure that the house put on sale has manifestly clear title and is free from all encumbrances. This fact should be evident from the Government records which buyers do check before buying a property. The land where the house is located is not disputed.  Take care that in a housing society, the house is freehold and sale is permitted without hassles.

Incentive:

Try offering some incentive e.g. discount if payment made early or payment made in full at once. 

Repairs/ Renovation:

The house on sale must be in order beforehand.  Repairs, where ever required should be attended. If need be, parts of the house can be renovated to enhance the physical as well as the material value of the house.

Real Estate Agent

The real estate agent hired for selling the house needs to be changed. The sale may require new perspective and better professional skills. Real Estate Agent should not have any vested interest in the sale.

Relocation Companies:

In case of relocation for work, employers arrange for buyouts through relocation companies.  It can be of great help.

Legal Advice: It is always better to engage a lawyer for the brokerage contract, title search, knowing the tax implications and preparation of legal documents, in case of property related matters. Selling a home becomes smooth with right advice and strategy.

Checklist for selling property in India

Checklist for selling property in India

Have you been planning to sell your property in India? Consider the following quick checklist before you start advertising your property.

Sale deed with clear title to the property

The broker or the buyer will tally your ownership rights with the Mother deed/Original title deed which you are supposed to own either in original or a certified copy of the same, the land records of the Sub- Registrar, the records of the society where is property is located and might even issue a public notice in the local newspaper calling for claims of the property. Make sure the document tracing the ownership of the property establishes a clear sequence of transfers leading to your ownership.

Encumbrance Certificate

You should always present the buyer/ broker with an EC up to the latest date. It shows that the property is free from the presence of any transaction or mortgage.

Latest Property Tax Receipt

The latest up to date tax receipt should be presented to the broker/buyer. Selling of property in the short span of 3 years will attract Capital Gains-tax, hence it is advisable to not sell off property so quickly as it would erode the profit.

No Objection Certificate

This is to be obtained from the society saying they have No-objection in case the apartment is sold.

Completion certificate and Occupancy Certificate

If you are selling an apartment a copy of the completion certificate issued by the municipal authorities ascertaining that the apartment is complete and the occupancy certificate is issued to ascertain the developer has constructed the property according to the specified norms and that it is ready to be occupied.

Power of Attorney

You can transfer the right to sell the property to a broker via this. Beware in whose name you sign this power of attorney. Settle all the post selling details before hand and make an agreement to that effect specifying the commission etc.

It is advisable that you do not lie to the buyer as it will land you in a dispute sooner or later.