Buying and selling of property is not an everyday event in one’s life. Most people know ‘if it ain’t broke, don’t fix it’ quite intuitively, i.e. if there is no need to sell your house, you simply won’t. But if you’ve been mulling over the question of whether to sell your property now or in the near future, you must consider the below signs before jumping into the real estate market.
If you’re not financially prepared
If you intend to sell your house and wish to downsize, the profit you make on the sale should be enough to cover additional expenses of moving, sale deeds, and other property-related charges. But if you’re hoping to upgrade to a new or more expensive property, you’ll have to pay the difference out of your own pocket. If you have not saved enough to cover any additional expenses, you might want to hold off and wait till you’re financially more secure.
Home loan restrictions
If you’ve purchased your current home on a bank loan, you will have to follow through with some legalities like obtaining an NOC from the lending bank, and get the original title deed transferred to the new buyer. Do not attempt to sell your house without fulfilling the stipulations along with the tax liabilities. Other than that, if you sell your house within one year of purchasing it on a loan, you’re liable for paying (STCG) Tax which is the tax applicable on investments sold within one year (percentage may vary between 10-30%).
The market conditions
If it’s a buyer’s market, beware. It means that the buyers have plenty of options to choose from. This could mean that sellers will have a disadvantage when it comes to negotiation and get a good price on the sale. It makes no sense to sell your house in market conditions where you may get a lesser price than you deserve. One way to check if it’s a seller’s market is to take a stock of the number of houses for sale in your neighborhood and beyond to see if the inventory is low, indicating that it’s a seller’s market. Another reliable way is to consult a certified real estate agent and understand if the market is favorable for a sale.
Sentimental value
If you are emotionally invested in your house and have great memories, you may feel reluctant to give in to the pressure of selling it if it’s not absolutely mandatory. In other words, you’re not ready to sell if your intuition nudges you not to. However, there may come a point in time when moving becomes imperative. But don’t jump the gun if you’re not emotionally ready.
Practical considerations
At times, you might have to consider several situational and physical factors that determine your decision to sell. For instance, if your job or occupation requires you to reside close by or if it’s simply not feasible due to other family or work priorities, you shouldn’t need to sell your home.
Factors for first-time sellers
If you don’t have any experience in buying or selling property, you might want to refrain from selling your house right away or accepting any offer that comes in. It’s necessary that you do enough research online/offline, and hire a credible realtor to strike a good deal on your behalf. You may have to pay the estate agent fees but it’s better to handle the sale professionally instead of going through an unnecessary struggle.
Number of residents
If your family size is the same since you’ve moved into the current home or has reduced (e.g if your children have moved out), you might not want to uproot yourself from your home and move to a new one. Conversely, even if the number of residents has increased in your family (e.g. birth of a child), but you find yourself not satisfied with the offers you’re receiving on the house, you might want to wait till a desirable offer presents itself.
Bidding war
If you are putting your house for sale in a seller’s market, you may receive quite a few tempting offers. It’s wise not to accept the very first offer you receive. Weigh your options, use solid negotiation skills, and zero in on the best offer.
Condition of the property
If your house is in disrepair or requires painting and structural restoration, you should first address these issues before putting it out in the market. If you don’t make your house appealing and attractive to buyers, you may not get the price you’re expecting.
If you live in a housing society with an intelligent society management app like MyGate, you can leverage it as a plus point. It provides end-to-end security, communication, and financial management such as passcode-based gate verification, online maintenance payments, online amenities booking, domestic help tracking, secure deliveries, and many more useful features for the convenience of an urban buyer.
Most of all, enlist your priorities (financial needs, family size, offers in hand, etc.) and use your discernment to take the final call.
Also, Read- When is the right time to sell your home soon
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