Real estate is second only to information technology in making millionaires. This sector has shown unprecedented growth and prices have spiraled out of control in some places. Strong economic winds have brought with them huge investments into this sector. Money has rolled in from foreign shores too, leading to massive developments in this sector. Huge land masses have transformed into concrete jungles of high rises. The slowdown of the world economy has had ripple effect on this sector too. Since the last one year the growth has slowed down considerably.
With less of money available in the market, lesser number of people are investing in property, resulting in low demands. This is forcing the builders to sell their properties at lesser prices to enable exits. High fixed costs mainly due to interests are discouraging developers to stay put with their investments. It has become a buyer’s market, where the buyer not only has ample choice but also can dictate prices. Needless to say that buyer’s are far and few and they are in a relentless mood to negotiate prices. Experts who provide tips when selling a home are advising not to venture out in the market and keep the property to you as the chances of getting a good deal are far less.
In such a market scenario, if you are a seller, then you will have to work really hard to find a buyer who matches your demands. Not only are their numbers few, but non availability of funds in the market have taken out big investors and only those who can ill afford to splurge are looking to buy properties.
However, if you are a lucky few who still have money to invest, arguably this is the best time to purchase. The moral of the sellers is low and they are ready to bend any which way to ensure a sale. From big builders and developers to small house owners, everyone is ready to go to any length to close the deal. Builders and developers have the sword of high interests building up on the principal loans which they have taken from the market. With low sales and that too at cheaper rates, they are in a dilemma whether to sell or not. The rates are discouraging them from selling while on the other hand the loan providers who are scuffing their necks for their money are forcing them to sell.
The industry experts are advising small time investors not to sell their houses they have invested in as the market is not ripe. In case one has to still sell, some of the tips when selling a home should be kept in mind.
- Panic selling should be avoided at any cost. One should wait for the right customer who can atleast come near, if not match your demand.
- Placing advertisements in newspaper, online portals and online classified helps find good customers. Real estate agents should also be roped in to ensure a deal.
- A relevant figure should be calculated as sale price and a margin of 5% should be kept to the maximum, as variation.
- Try repainting and giving the home a bright outlook as it attracts the buyer.
- Plus points of the property should be highlighted to the buyer at the time of sale.
- One should not give a sense of desperation to the buyer, as this encourages him to negotiate more.
- Once the deal is through, one should clearly check the sales agreement and any liability arising on the property after the sale date should clearly be the onus of the buyer.
- While taking the payment one should be clear that to avoid capital gain tax the money received from the sale proceed should be invested further in buying a residential property within 2 years time.
With these simple tips when selling a home, one can ensure a smooth and fair deal.
Author writes on behalf of 99acres.com, a leading online portal thriving to solve the consumer’s requirements in real estate segment. The site offers a galore of information regarding the real estate property such as flats and houses to buy on different locations such as Juhu.