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