People often question “Is it a good time to buy or sell?” The reply is usually the same, “It depends on your needs.”
You might be moving to a bigger house to accommodate a growing family, or to a smaller place as your children do not stay with you.
Perhaps a new job has dictated a move, or you just need a change. Selling your property at your expected price is not an easy task. Most transactions either break or end bitterly. The buyer always feels that he paid an exorbitant price and the seller always feels that he didn’t get the full worth — he sold it grudgingly. While this is sadly true, it does not always happen that way and your case should also not be an ordeal.
The most important thing one needs to have is the right frame of mind. If you’re not mentally prepared to sell your property, your apprehension will show on you. This will make your prospect suspicious — is there something illegal about the property? Is the seller forced to sell it because of some misfortune? Is the property unlucky? Are there any structural defects in the property that the seller is hiding?
When a prospect comes to inspect your property, he is probably more anxious than you; after all it’s his money at stake and he is certainly not looking forward to some bad surprises. So make sure you’re mentally prepared, and if you doing a panic selling (which you really shouldn’t unless you don’t have any other choice) don’t let it show on you. Keeping a positive attitude will help you relax your prospect too.
Your next job is to decide on the selling price of your property. You don’t want to overprice it, yet you want the best price possible. To do this, you need to study the prices at which properties have been sold in the neighbouring area.
You then need to make a comparative analysis of the prices, and then compare it with your own, taking into consideration the market trends that have taken place after those deals. This little exercise can also help you arrive at a logical price — first, walk away about a hundred metres from your house. Then slowly walk back towards it, as if you’re coming for the first time. Look around at the surroundings like a stranger; make notes of what appeals to you and what doesn’t. Take an objective look at it — don’t include your emotional attachments. We’re so used to coming to our house naturally that it becomes a part of our routine — we’ve even forgotten the messages that the surroundings give. This exercise will help you overcome that.
Take the help of a close friend or relative and ask for tips on improving your property to get a better value. You can even think of getting your property evaluated by a certified professional appraiser. If you’re going to use the services of an agent, make the commission amount and payment terms very clear, well in advance. While quoting your price, quote a little higher to keep room for negotiation; some people would never buy at the asking price, even if they find it reasonable. Decide in advance how much you would be willing to discount below your expectations and don’t disclose it until your final negotiations are on the table. Be flexible on the price, only subject to market trends.
Once this is done, shortlist on estate agent or office to sell your property. Exclusivity matters here. Properties sold under exclusive agreements usually sell for the best price in a shorter time unlike property offered to various agents in the market, as with too many agents they would like to get benefited of the deal and will start quoting lower price for your property. This actually reduces the charm of your property to the buyer. Try to give this responsibility to the trusted name in the market.
Once the deal is negotiated, sign an agreement /contract with the buyers. The same should mention all the terms discussed with the buyers and nothing should be left on verbal commitment. Always try to keep your agent as your representative in between all the meetings and discussions between you and the buyer till the transaction is closed. Everything should be in black and white on the contract paper.
Time for payment should be clearly written in the agreement or there should be a clause of forfeiture of the token money, so the buyer should not expect to get some time extension at the time of final payment.
Every investment you make in property requires your best attention. Large sums are made and lost through selling property, so learn how to avoid the above listed common mistakes.
The author is managing director, Bajaj Capital...
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