All you need to Know About Distress Sales
May 15, 2017 Legal Guidance
Realty sector in the country has been witnessing slowdown for a considerable amount of time now. With people unwilling to spend on homes, developers across major cities in the country are stuck with piled up inventory. Moreover, the recently announced demonetization of 500 and 1000 rupee notes has led to a further slowdown in the property market in the country.
Secondary real estate market, that involves the selling of resale flats has taken a major hit as a result. Property sellers are particularly worried about getting the right price for their property due to the apparent ban on old high denomination notes by the government. Home buyers are playing the waiting game as they are expecting a considerable reduction in property prices due to lack of demand.
The introduction of RERA and GST is supposed to motivate people into investing in real estate. However, it will take a few more months before we can start expecting results. So should you sell the property for lower rates in this time of distress or you should wait and watch for the prices to increase? We have listed a few factors that can help you decide your next move:
Aggressive marketing of your property:
If you have made up your mind of selling the property, then, try to reach out to maximum potential buyers out there. Do not depend on advertising your property on the agents alone. Instead, promote your apartment on various online real estate portals that will help you to reach more people. Moreover, the majority of these online portals offer free services and ensure good reach. Always state the salient features of your property without unnecessary gilt and glamour. False marketing will only lead to your property being unpopular among potential buyers.
Also, it is very important to keep your house well maintained and tidy. Extra care should be taken to cure all leakages inside the apartment.
Quote the most realistic price for your property:
It is always recommended to consult a property valuer before putting a price tag on your property. In a bid to earn maximum profits, sellers often put a huge and impractical price tag on their houses which in return does its best to keep the buyers away. Valuers identify the potential of your property and put an appropriate price tag on them on par with the prevailing market rates.
You can also assess the prevailing prices of the properties in your locality to come up with the most suitable price for your property. Quoting the right price will avoid distress and help you in earning lots of profit.
Is there a need to sell your property?
Emergencies may tend a seller to liquidate his property for lower prices. Hence, before making any kind of distress sell, always try to find out other ways to finance your needs. If you can afford to hold on to the property for say another couple of years, then, do not cave in for distress sales. So it is always good to analyze the need for selling the property before selling it at a considerably lower price.
Be wary of speculations:
Speculations are always rife in the realty sector, although majority of them fail to see the light of the day. Hence, it is important to be cautious about speculations which expect a sudden change in the market conditions. People generally fall to the rumors of market being in turmoil and as a result sell their properties in distress. It is always better to keep your calm and verify facts before you decide to sell.
Secondary real estate market, that involves the selling of resale flats has taken a major hit as a result. Property sellers are particularly worried about getting the right price for their property due to the apparent ban on old high denomination notes by the government. Home buyers are playing the waiting game as they are expecting a considerable reduction in property prices due to lack of demand.
The introduction of RERA and GST is supposed to motivate people into investing in real estate. However, it will take a few more months before we can start expecting results. So should you sell the property for lower rates in this time of distress or you should wait and watch for the prices to increase? We have listed a few factors that can help you decide your next move:
Aggressive marketing of your property:
If you have made up your mind of selling the property, then, try to reach out to maximum potential buyers out there. Do not depend on advertising your property on the agents alone. Instead, promote your apartment on various online real estate portals that will help you to reach more people. Moreover, the majority of these online portals offer free services and ensure good reach. Always state the salient features of your property without unnecessary gilt and glamour. False marketing will only lead to your property being unpopular among potential buyers.
Also, it is very important to keep your house well maintained and tidy. Extra care should be taken to cure all leakages inside the apartment.
Quote the most realistic price for your property:
It is always recommended to consult a property valuer before putting a price tag on your property. In a bid to earn maximum profits, sellers often put a huge and impractical price tag on their houses which in return does its best to keep the buyers away. Valuers identify the potential of your property and put an appropriate price tag on them on par with the prevailing market rates.
You can also assess the prevailing prices of the properties in your locality to come up with the most suitable price for your property. Quoting the right price will avoid distress and help you in earning lots of profit.
Is there a need to sell your property?
Emergencies may tend a seller to liquidate his property for lower prices. Hence, before making any kind of distress sell, always try to find out other ways to finance your needs. If you can afford to hold on to the property for say another couple of years, then, do not cave in for distress sales. So it is always good to analyze the need for selling the property before selling it at a considerably lower price.
Be wary of speculations:
Speculations are always rife in the realty sector, although majority of them fail to see the light of the day. Hence, it is important to be cautious about speculations which expect a sudden change in the market conditions. People generally fall to the rumors of market being in turmoil and as a result sell their properties in distress. It is always better to keep your calm and verify facts before you decide to sell.
Looking for property portal?
Related Articles
-
What Can you do in Case of Cheque Bounce?
Feb 24, 2020 -
Steps to File a Complaint in Consumer Court
Aug 14, 2018 -
Another Law to Protect the Interest of Buyers, Soon
Nov 17, 2017 -
A Guide to Claiming Tax Benefits on Joint Home Loans
Jun 13, 2018
See comments (0)
Write a comment
