This story is from October 14, 2022

Seven things you must know when selling a home

Niharika Bisaria / TIMESOFINDIA.COM / Oct 14, 2022, 23:03 IST

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Seven things you must know when selling a home

Selling a home is never an easy decision. But once you have made up your mind to sell, a plethora of new questions need to be answered. In this article we take a look at seven important things you need to know when you are in the process of selling your home.

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What is the right price?

It is important to understand the correct price you should quote for the property. While there is always room for bargaining, usually sellers and buyers understand that negotiations do not go beyond Rs.2-3 lakh of the quoted price. If you quote too high a price, which is totally off the market rate, not only will you never get a buyer, the broker network infers that you are not serious about selling.
The best way to arrive at the correct price is to research the history of recent transactions in your locality through brokers, society offices and property portals like Magic Bricks etc. You could also get a valuation of your property done through a bank, which may help you defend your price to a buyer. This is helpful when your house is in a location where there aren't too many transactions taking place.

How to recognize a genuine buyer?

It is essential that you talk only to genuine buyers else you will be wasting your time and effort showing your property to all and sundry. Try to gather as much information as possible about the buyer’s occupation status and employer, current place of residence, family background etc. While the broker will also verify this information, it is important you do your own homework.
Once you are satisfied with the background check, you should review the amount the buyer is willing to pay as a token amount to book the flat. Usually if the buyer is fairly certain of going ahead with the transaction he/she will be willing to pay a substantial token amount.

How to select a good broker?

You should use your friend and family network to select a good broker. Often big property consultants also offer broking services. Local brokers and institutional brokers, both have their positives and negatives. The advantage with local brokers is that they know the area very well and often their strong local network helps them get buyers quickly.
With larger brokers the advantage is that you may feel more secure, as they may be more professional in their approach. Having said that, there are enough examples of local brokers who have helped both buyers and sellers seal good deals. A background check on the broker you are considering is important.

Is it essential to employ a broker?

Employing a broker for selling your flat is not mandatory. You could get a buyer for the flat yourself and employ a property advocate for completing the paperwork. Or you can also list your property online on portals like Magic Bricks and NoBroker. These property portals give you access to a large number of likely buyers and do not charge you anything for listing your property. You need to clean your house, click aesthetic pictures for displaying on the portals and decide the Unique Selling Proposition of your house as you are responsible for marketing your property.

What are a broker’s responsibilities?

Your experience of selling the property, depends to a large extent on the choice of broker. Apart from getting you a buyer and a good price from your flat, it is your broker’s responsibility to ensure that all the paperwork you need is in order and the entire transaction goes smoothly.
His responsibilities include:

Cross checking the buyer’s home loan documents from the bank
Arranging the MOU to be signed
Getting you the society NOC for selling the house
Getting the token amount from the buyer
Ensuring that all the required details are mentioned in the Agreement for Sale
Ensuring the registration and stamp amount is paid by the buyer before the Agreement for Sale is signed.
Resolving any queries or doubts that the buyer may pose to the seller during the transaction

In fact the broker’s work is not over till you receive the full payment for your flat and he hands over the keys of the flat to the buyer. For all these tasks the broker usually charges 1-2% of the agreement value of the flat from the seller.

What are the steps involved in selling?

Once you have a serious buyer, the selling process involves a certain procedure which you should be aware of:

The buyer pays a token amount to book the flat. This token amount can vary from Rs. 1 lakh to Rs 5 or 10 lakh. Once a seller accepts the token amount, he will stop showing the flat to other buyers.
An Agreement to Sale (ATS) is signed between the seller and the buyer stating the total amount for which the seller will sell the property and all the other terms and conditions related to sale of the property, including earnest money of about 5-10% of the price, date by which the sale deed will be completed etc.
A No Objection Certificate (NOC) from the seller’s society has to be obtained by the seller and given to the buyer. This tells the buyer that there are no outstanding dues from the seller towards his society.
If the buyer has opted for a loan to buy the house, he must give the loan sanction letter from the bank to the seller. The bank also sees the original property documents before sanctioning the loan.
The buyer pays to the seller the amount he has to pay upfront (apart from the loan amount which the seller will receive directly from the bank)
A Sale Agreement is drawn out by the buyer in which all the relevant details like the Buyer and Sellers Names, their PAN card and Aadhar Card details, the final agreed upon price of the flat, the exact size and address of the flat, Occupation Certificate of the building etc. is mentioned. The total payment made and the total outstanding amount is also mentioned. The agreement also mentions the number of days by which the final payment will be made to the seller. The plot number is also mentioned as are all the original sale agreement details of when the flat was purchased from the builder.
The buyer has to deduct TDS of 1% of the sale consideration or stamp duty value of the property (whichever is higher) if the sale consideration or stamp duty value is Rs. 50 lakh or above. This TDS challan has to be given to the seller.
Payment of the Society Transfer Fees is divided between the buyer and the seller
The Buyer pays the Stamp Duty and Registration amount and the sale agreement gets registered. Full and final payment is made by the buyer or the buyer’s bank if loan taken. Original property papers are handed over to the buyer or his bank and keys given to buyer.

What if the bank loan sanction does not come through?

You need to be aware that usually a period of 45-60 days is taken by the bank to process the loan amount. This period is mentioned in the Agreement document. However, sometimes a bank may withdraw the sanction. In such a case, the Agreement becomes null and the seller is under no obligation to sell the property to the buyer. The buyer has to forgo the token amount and a Cancellation document is signed by both parties which nullifies the Sale Agreement.

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