01. Finding the buyer for house:
In any real estate deal, on the closure of the deal, the seller always feels that he sold at a slightly less price and he could have got better. While the buyer always feels that he paid a bit higher price. If bargained properly he could have still saved something. But most of the time both are at the proper place and nobody loses anything; provided there is a fair deal.
Hence finding a buyer for an existing house is not an easy or simple job. How you approach the sale will influence what type of buyers you attract and how long it takes to close the deal.
First, decide if you want to use a broker or do it on your own. Brokers may charge 1% to 2% of the value of the house. If that is not acceptable, go it alone but be prepared to do a lot of running around—including arranging for the registration and other legal paperwork. We advise you to explore both routes simultaneously. But if you remain very busy, it is better to engage a broker.
The broker will save your time as sometimes they have a ready list of buyers or list of buyers in waiting.
Once you decide to sell your house, start looking for buyers. Your property must come in market and buyer should be aware of it.
“The wider the net you cast, the better your chances of catching the right fish,”. Start in your immediate vicinity. People currently living in rent in your neighbourhood or permanent residents looking out for a place nearby for their relatives would provide a ready catchment of prospective buyers. “Your first ‘interested’ home buyers may very likely be generated from notices you put up in your housing society”.
Online housing portals / websites help attract buyers directly. List your house on at least a couple of portals. “The seller must be available on multiple platforms as this is where buyers are undertaking initial research,” Magic bricks, says, “Buyers are increasingly looking at individual listings on the portal, preferring to negotiate directly with the seller.” However, a broker with local expertise would be best placed to generate relevant leads and will be able to help out with formalities.
Have more than one or two offer. It will always give you the option of choosing the right buyer and at the same time, you will also come to realise the right value that your property is worth.
Further “Keep the opportunity cost in mind if there is a subdued market, a slightly lower offer should not be completely overlooked.” A lot will depend on payment conditions and how fast you want payment.
Valuing your property
Pricing is critical for the deal. Make a reasonable assessment of the value of your property. A broker can help you here because he is aware of the market trends. If you are not using a broker, find out the sale price of similar properties in the area. Online property portals are helpful, but the information they provide can often be outdated and therefore, misleading. A sluggish market warrants you make a competitive offer.
Also Read: Importance of Value & Valuation.
One has also to consider that what size of residential inventory or new schemes will be hitting the market in near future as they may affect your sale price. When new stock/schemes come in, the chances of getting the best price on your house are slim.”
It will depend on many factors like:
- Age of your house
- It’s present condition
- Supply and demand in the vicinity.
If you want to sell quickly, give a discount of at least 2% to 5% to hasten things up. One time payment is always desirable, rather than accepting payment in instalments. Hence offer discounts for one stroke payment. Be flexible in your negotiations and don’t get stuck on a price point you may have seen or thought some time ago. “The buyer must see the value in the deal. In sticking rigidly to your price you may loose prospective buyers”.
You, of course, can insist on a premium in certain situations. For instance, if an existing flat owner in the same building or society shows interest in your flat, you are in a better position to demand the price tag you seek.
Do keep in mind that property should not be sold in a hurry unless you are in urgent need of funds. “Real estate is not a liquid asset. You need to give it a reasonable timeframe to close a deal”. In developed countries sometimes it takes months and years to finalise the deal.