Any investor would undoubtedly want to make a killing from the sale of his property. But if the timing is bad, the property price unrealistic and marketing efforts poor, he may not get good returns from his investment. To help property owners make all the right moves and maximise their ROI, we have put together the following guide.
Determine your property priceDetermining an accurate selling price for one’s property might seem simple, but it is not. It has to be worked out painstakingly and wisely. Among factors to be considered while determining the asking price are the prevailing interest rates, condition, type and location of the property and general market conditions.
Unless the price is realistic and market conditions conducive, you may not find takers for your property. So talk to real estate agents; consult people who have sold properties in and around the area where you have your property; and also look up properties on sale online and in newspapers to get an understanding of the market rate for your property. You can also get an independent property valuation done to avoid over or under-pricing your property.
Find a good agentSelling a property is an extremely cumbersome process and you need a good real estate agent to help you with it. An agent will not just offer you good advice on pricing and legal requirements to be fulfilled, but also help in developing a sound advertising strategy for the property so that it can get maximum attention from buyers. He will also screen buyers for you, negotiate with them on your behalf and even oversee the closure of the deal.
It is important to find an agent who understands the market, knows the realty prices in the area and has closed similar deals successfully. So seek references and do a background-check before hiring an agent.
Understand the legal requirements
If you have a good agent and attorney by your side, it will be easier to understand the legal nitty-gritty ahead of the property sale. You would commonly require a clear title of your property, a legal contract with property information and other documents depending on which state and country the property is located.
Develop a good advertising plan It is important to advertise your property well so that it attracts the attention of maximum number of buyers and helps you fetch a good price. There are a number of advertising options now available including real estate portals, newspaper ads, mailers and word-of-mouth marketing.
Smarten up your propertyBefore buyers inspect your property, get necessary repairs and refurbishing done so as to increase its appeal; it will also give you the leverage to demand a good price. You should also get a thorough inspection of the property done and fix all problems before you put it up for sale. If buyers find the property in a poor shape, they might get turned off and you may not get your desired price.
NRIs should sell properties in keeping with RBI norms
- Non-resident Indians (NRIs) can sell their properties and repatriate the proceeds out of India, provided they don’t exceed the amount paid for acquisition of the property, either in foreign exchange received through banks or your Non Resident account.
- The repatriated amount should not exceed its foreign currency equivalent (as on the date of payment) as well.
- If you are planning to sell your residential property, remember that repatriation of the proceeds is restricted to two properties only.
- Consult an attorney and a tax advisor before taking up the sale to understand all legal implications
(source: Economic Times)