5 things a property seller must review before inking the sale deed
For each property bought, there has to be a seller. So, it can never be a 'buyer's market' without a seller selling one.
In this tough property market spare money is rare. After demonetisation, GST and RERA implementation, getting a buyer at the right price has become a tough task for both builders with under-construction gated communities as well as individual sellers with a desire to sell a property. Expecting the builders to have deeper pockets and bigger bellies, I will advise the individual re-sellers.
1. Do not be overjoyed that a seller has enquired or is requesting a meeting through his broker:
(a) Another property-seller who wants to know how low you will sell
(b) Your own builder's representative who still has unsold ready stock to know the above information
(c) A property broker himself who still does not have a buyer, hence, pretending to be one to get the info out from you
(d) A person who is researching on the market condition
2. Before discussing the final price, please ask him how soon he can close the deal:
Of late, buyers are seeking crazy time such as 90 days to conclude a deal! You must remember, it is either that he has not ready with his funds or this time is for him to wait and watch if the market goes down further and he can re-negotiate. Do not allow more than 30 days in any case. You should also enjoy the privilege of looking for new buyer(s) at an escalated cost. You never know!
3. Ask for source of funds:
He may say the following which means the transaction is not likely to be through and it will cause you a lot of stress.(i) He will sell his own property and buy yours with that money
(ii) His investments will be giving him good returns once the market starts looking up
(iii) His broker in USA is selling his property and with that money he will buy
(iv) He will apply for a bank loan and after sanction, he will buy.
None of the above works in reality. I call it "under-construction money" If you are selling a ready-to-move-in house, then he should have 'ready-to-issue-a-cheque' money to buy it. Does it sound real now?4. If you are running a mortgage loan and your buyer wants to go to some other lender for a loan, it will take a month almost for you to get the money:
This means you will have to sign the sale deed and register the property in your buyer's name before you get paid. It is a tense situation. Do not take that chance unless,(1) You know the buyer well through some connection and sure that you can pull him up, if required
(2) You have a strong broker who is in control
(3) The lending bank has issued a proper sanction letter with your property address mentioned in it. (It means that the sanction is for your property, not a general letter of approval)
(4) You have a strong mortgage broker in between who has good relationship with both the banks (of seller and buyer).
5. Do not lose patience that your property is on the block for very long and do not die to ink the deal to feel as if you won the race:
It may not be a seller's market as they say, but in order for it to be a buyer's market, a seller will do the deal. And it could be you or someone else. So, in a real world, for each property bought, there has to be a seller. So, it can never be a 'buyer's market' without a seller selling one. It is completely balanced. So, do not fret over it.
Find a real buyer, find one who has the cash/loan in hand and the one who is interested in closing it soon enough for you to be committing into it and most importantly, pay the brokerage and engage a broker who can and will handle the transaction smoothly on your behalf. It is worth the money if he can control the outcome in a balanced way.
Hope you have enjoyed the read. Till then Happy Selling, Happy Money-making!!(The writer is founder of RetailLending.com)