Mistakes to avoid when selling your house


Are you planning to sell a house and are you a first-time seller? Well, you need to know certain things or rather factors that affect the sales. This article will give a brief idea about the main factors to be considered while selling your house. It will definitely help you as you can, in turn, maximise your profits by applying these.

Introduction

Who wouldn't want to make a reasonable amount of profit when selling a house? But we need to consider certain factors to make a successful sale. If it a real estate agent, they would definitely know how to deal with it, whereas that is not the case with a common man. There might be first time sellers, who do not have any clue about it. Buyers take such people for granted and the seller will end up in a loss. Be it any product, when we are trying to sell something our main aim will be to maximize profits. That does not mean we should adopt any ways to achieve it. Standing within our ethics, we should be able to maximize our profits. Certain minute mistakes or ignorance of ours might lead us to lose a customer or profit. Such situations should be definitely avoided or else we will regret later. Selling your house might be a sentimental or an emotional challenge, but never let those feelings dominate you. It can affect your decisions.

One of the common mistakes some people do is, they avoid the first buyer thinking that better buyers will come later. For instance, if the seller is planning to sell the house for 1 Crore and a buyer approaches him agreeing for 85 Lakhs, he will not sell it and will wait for other buyers. Finally, the seller will end up selling it for less than 85 Lakhs due to non-availability of potential buyers. It might be because the seller was into overpricing or did not have an idea about the future market conditions. This does not mean we have to sell the house to the first buyer but we should try to figure out whether the price offered by the buyer is a reasonable one or not. Hardly anyone will be ready to buy a house by paying more than its worth. Seller would always want more money but he should also think from the buyer's point of view. Let us see in details what all are the factors to be considered before selling a house or before agreeing with a buyer.

  1. Look out for favorable market conditions : The first and foremost thing to be checked is the prevailing market conditions. The market will not favor us always, hence it is our call whether to wait for it or not. Sometimes you might be in a hurry and will have to sell the house immediately. Maybe due to immediate financial requirements, in that case, we obviously can't wait for favorable conditions. In all other cases, if you can actually plan in advance, and work for it, you will be able to make a better profit. We know at times the real estate market will be down and if one sells their house then, they might end up disposing of it at a loss. Land value normally appreciates, hence we should be able to make a profit out of it. Just don't be in a hurry instead wait for the value and demand to increase. The market will never be always down, hence if you wait, definitely, you can sell your house when the market rises


  2. Advertise it wherever possible : Advertising has a very good impact on sales. At the end of the day, everyone would want to make a profit when selling their house. If it was to incur a loss, might as well not sell it. We also need to do our part in order to get reasonable profit or rather to maximize it. Hence don't just rely on the traditional approach of finding an agent. Agent commissions will bring down your profit. We ourselves have access to the world these days, utilize it. Put up advertisements in classifieds, property related websites, social networking sites etc. Let more people come to know that you have a house for sale. This will fetch you more customers and you can negotiate and conclude the deal at a fair price both for the buyer and seller. Never exclude the agent part completely, as agents know in and out about the market, hence they can find you, good buyers. But along with agents, look out for other options as well. We never know through which channel the right deal will come


  3. Assess the value of the asset : Both overpricing and under pricing are not good for the seller. Under-pricing will definitely incur a loss for you. Similarly, when we overprice, we cannot attract many buyers. Also, we might ignore the buyers who come up with a reasonable price initially and at last we will have to sell the house for a lesser value as no one tends to approach us. When buyers are less in number, we can't negotiate much and will end up choosing the best among the few. The seller needs to do a proper research and find out the available rate prevailing in the area, consider the features of the house, the age of the house etc and accordingly put a value. Just because we are in need of money does not mean the buyers will take our house for that amount. Another problem with overpricing is that we expect a lot and when the sale is concluded for a lesser value, it will affect our calculations and we will be upset. Have proper calculations to avoid later issues


  4. Be open and honest : You know your house better than anyone. Be it to the agent or the buyer, try to be open and honest. It is better we disclose all the relevant facts or past history with regards to the house for sale. Hiding the information is cheating the buyers. If the buyer is buying the house for staying there, they will definitely come to know about the faults with it. They can always come back to you and yell at you for cheating them. Such issues can be avoided by disclosing facts in the initial stage itself. Also never try to conceal the faults when the buyer comes to inspect the house. In fact, you have to determine a value for the house after considering these factors as well. In that case, no one can come back to you in the future as you have not taken anything more from them. Above all, you can sleep peacefully


  5. Maintenance and cleanliness is required : The seller needs to consider himself as a buyer and look from his point of view also. We would not go for a house which has a lot of maintenance issues or lacks cleanliness, same applies to any buyers. Now it is our duty to fix the minute issues relating to the house and also to clean and keep it in good order so that the buyers will like it. Buyers can also pinpoint these issues and bargain with the seller to reduce the price. Never give a chance for that. If something can be changed or corrected by you, do it or else you will lose. But never get into renovation or extension thinking that buyers will like it. The money thus spends may not be recovered. After buying, the buyer will do whatever is necessary. But of course, the minute things are to be corrected and you have to prepare your home for sale


Conclusion

Selling a house, might not be an easy task for all. You will have to witness people coming into your house and commenting upon it. Yes, it is emotionally challenging too. Buyers will get into negotiations and bargaining but never give up. Of course, you have to be flexible, but you should know where to draw the line. Another thing you need to make yourself understand is that it is highly unlikely that you will get the price that you expected. If you get, well and good but if it is the other way round, you should be ready to accept it. If you can manage to sell the house by yourself, go ahead but if you think you can't, don't take a risk. We have many agents around us, take their help. Be careful to choose the right agent or else they will trap you. Preparing the house for sale is yet another tedious task a seller has to undergo. You have to make it reasonably attractive so that you can attract buyers. In short, do your part and never miss a chance due to your fault.


Comments

Author: Natarajan31 Dec 2017 Member Level: Diamond   Points : 8

Most often selling a house is for raising some source for a large amount of fund like a wedding, overseas higher studies of children and sometimes it is distress sale to cover some unexpected financial loss or difficult circumstances. The moment we give a message that it is a hurried sale for want of money, the price will be lowered by the agents and the buyers as they cash in the seller's situation and tight schedule.

I would like to add that properties with clear, clean title deeds and ownership records are most sought after by buyers who want to avoid the obvious legal issues and hassles later on. If you have a good property, built as per the sanctioned plans without any litigations then please use this as the USP of your property. Having update meters for water, electricity, and property tax papers implies that you care for your house and impress people.

Assessing the market needs is important as selling at times when the market is down it not of much help. In many parts of South India, the property prices have come down since the beginning of 2017 and many real estate experts are actually recommending to invest now as the market is flat.

Getting the right price bracket of the value of the property is difficult, one of the reliable sources are people who work for bank property loan sections and people working in the revenue office where properties are registered (both selling and buying).

A word of caution about selling agents, these people almost function like a cartel to drive the price down from the seller and earn more by keeping both buyers and sellers in dark about certain issues.

Lastly, if the seller or a member of the seller's family has been the subject of IT raids or there are few other potential heirs to the property then buyers are hesitant. If the seller is part of a joint family, then everyone who is above the age of 18 has to consent to the sale. If this is the case, get these in order before advertising the sale.

Author: Umesh02 Jan 2018 Member Level: Diamond   Points : 5

It requires a lot of homework and planning before we decide to sell a house.

Many times a house or flat falls in a housing society and the society will charge a good amount as a fee for giving NOC for the transaction. This is also to be kept in consideration.

Some buyer may offer some black money as a part of the deal. They do this to get rid of their black money. This may look lucrative from tax saving point but we should refrain from such practices as that will a big problem to the seller later on.
Nowadays property selling or purchasing procedure is streamlined by the Govt and we should follow it in a transparent manner to avoid any future hassle.



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