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Intro
Namaskar, my name is Mukul and welcome you to Asset yogi
Where we did not lock the knowledge of real estate and finance, we unlock it.
In today's video, we are going to talk about if you have a property and you want to sell it, then how to sell a property
Many subscribers said to me that you told us ways to buy a property, plots,
Agricultural land, under-construction property, ready to move property
But no video made on a sale of a property
So I thought let's do a proper detail video in which I will talk about how to sell a property correctly.
How you can get the full value of the property
We will see that if there is a loan against the property, then how can we sell it
How to sell yours under-construction property, how you can increase the value of your property
And how to do marketing of your property
We will see about all the things in detail, now because we are going to cover the whole process, the video may be a bit long
But I assure you, if you watch this video completely
Then this knowledge will be with you for a lifetime, and will always work for you
Then you have to definitely remain in this video from beginning to last, let's move straight towards the blackboard
So let's see the complete step by step process of selling property, where it starts, what should you do first
And after that what will be your steps and finally, the last step which is of sale deed, what will be your journey up to there
On what things you should pay special attention
Whenever you want to sell a property, the first step is
You should make repairs to the property, or maintain it
What are the points in it
First of all, you paint it, if its paint has become old, it has crumpled
If it has cracks in walls, fill all the gaps, then you paint it etc. because if anyone will come to buy your property
Then seeing all these things his mood may be off
Let's assume this when you go to buy a property for self
You also wish, to buy a property that looks nice and beautiful
Then you take an interest in a property to buy it, then assume that if you are a buyer, what type of property you would like to buy
The first thing that comes into is that if you have any issues inside the property, it is very important to fix it
So when you paint on it freshly, then a new look comes.
Preferably if you paint new paint light colour on it, it looks nice and bright, and your property look big
This is a small tip
Pay attention to kitchen & bathroom, do pest control, get work on any leakages, repair the laminate
So, sometimes these small types of things also matter
Then fix any electrical fixtures such as; fans, lights, wires, switchboards
Then deep cleaning is important, make sure to do it
Then pest control is also important
So see, it will not cost you much to get all these works done but the value of your property will increase
If the expenditure is Rs.50,000 then its value will be increased to Rs.2,50,000
So, don't miss all these things, fix all the issues in the property
Fix all the electrical fixtures, a fresh coat of paint, leakage etc.
Then you can have artificial or natural plants
It will give a lighter look, it will give a better look
Step 2
Clear all the dues, whenever you go to a buyer, they will expect you to clear all the dues
Clear the property tax
Clear all the dues of electrical, water, gas bills & clear maintenance charges of society & RWA dues
If there is a home loan & you have sufficient savings
Then if you first clear the home loan it is better but it is not necessary
You can also clear the home loan with the money given by the buyer
But if you can clear the loan before selling then it can save you a lot of time
If there are any other liabilities or third party disputes
Then settle all the disputes before selling it because then it can cause some trouble later
After you settle all the disputes, the next step is to check all the documents
The first is ownership documents
weather it is a sell deed or convinced deed or general power of attorney or lease deed
There should be no problem in ownership title , to be ensured
Then the chain of title should be readily completed,
This means old ownership documents must be completed,
From the first sell till now, all the documents must be compiled in the file.
All the receipt of the property tax must be gathered at one place,
Such as electricity, water, gas ETC, now lets talk about time,
Whenever you sell the property the time matters provided without unrealistic expectations.
In realistic expectation in how much time the property must be sold,
It depends if it is a seller market means if supply is less than the buyers,
In such cases you can sell the property in 3 to 4 months
But if there is over supplier in the market means sellers are more than buyers,
In such case problems may arises in selling
The price may decreases in such cases in markets
In sellers market you can expect good prices,
If you are not in hurry in selling property then you can wait for sellers market,
But if you are in hurry then you can opt yo buyers market with some cutting in the prices,
Now lets talk about valuation and pricing,
Means if you are going to sell the property then the right price valuation must be calculated,
For the right market valuation i have made 3 videos on property valuation method,
From this 3 methods you can calculate right market valuation,
So in recap you can check online prices of your nearby areas property,
Or you can ask your broker, about the valuation of property or about the comparable property,
If you are selling commercial property,
In residential property online comparison is very good and you can sell in market price
In commercial property you must highlight rental returns if the returns are good,
If the returns are more than 6% annual returns
Then you can sell commercial property easily if your annual returns are 8 to 10%,
Then you can easily sell commercial property,
Then in 3rd point as we have talked earlier,
If in buyers market with low price, you may need to offer discount if the need is urgent,
Then you can offer 2, 3 or 4% discount in the market, quoting less than the other people
In such a case property will be sold soon. if the need is urgent
If there is no urgency then you can wait for sellers market,
The next process is that you need to do marketing, firstly you need to prepare property details,
Means in describing property you need to highlight location, with near by facilities
Such as schools hospitals markets, metro, airport, railway stations,
With connectivity transport facility must be highlighted whenever you advertise your property,
The description must be ready for the buyer
Then describe their complex and amenities
Such as temple should be highlighted. if any senior citizen with 50 + age,
If they came to know that there is temple in the complex then the premium may be confirmed,
From this the chances of selling the property increases,
Sports facilities such as Gym clubs, swimming pool, extra parking ETC should be highlighted,
With one or two parking with covered or uncovered parking should be highlighted
The house picture is important if you are sharing it on social media for advertisement
So take the picture if you renovate your property with wall paintings then it is important to show case it with pictures,
A video will even be better, with a small tour
Then share it on your social media or with your broker. You can share your link in your you tube channel
Once you make the detailing then the task of marketing will come, from the different channel
Firstly you can highlight your local broker after checking his past records
About his expertise in the local market with his track record
He must not involved in any fraud, he must not be low grade broker
He must be good enough to bring the buyers to you and negotiate on your behalf,
You can use your social network, everyone has account on FB, TW , LI,
You can E mail or share it on your social media,
There can be so many chances that any of your colleagues can show his interest in your property,
Todays online channel becomes a huge channel, everyone starts its own research online,
Many popular portals such as 99 acres, magic bricks, Housing dot com, common floor dot com,
Any popular channel in your area you can post ads on this portals,
Free ads and paid ads are also available you can choose from them,
Whenever you post ads you must provide maximum information as we have talked earlier about property papers,
Try to post maximum property details in online ads,
Once you have done marketing many buyers will approach, if he shows interest then step of negotiation and agreement will come,
In negotiation i will give you some tips,
Firstly you need to tell positive aspects of property,
From this, he will influence and show some interest on it,
I am talking about vastu, means if it is north or in east side facing then it will show some premium
You can also show the park facing which will also some premium
If sunlight and ventilation are good
You can talk about luck and charm if the property proved lucky for you, that can also be highlighted
You can highlight the behaviour of a neighbor about there service class or helpful nature,
Your maintenance of the property can be highlighted, because you are marketing and selling your property,
It is you duty to highlight it,
You can explain the complex and amenities to the buyer about the temple, sports, gym , club, parking ETC,
It must be explained to the buyer whether you are doing it again, you must do it
After that, once you have done all this explanation, you will come to one figure
On how much it will be sell, a discussion will be about pricing and valuation
Whenever the discussion Start about the figure of buy & sell of property
First asked the buyer about the value of the property
Then he gave his figure after that you can assign your figure
And when assigning your figure, suppose the buyer says, according to him it values around 1 Cr
So after that, you can say that
If you have taken an estimation of only one crore, then you can assume that you can close it above one crore.
Let's say you quote 1.1 Cr
So assume that this deal can be done quite comfortably between 1Cr and 1.1 crores.
So you have given a figure of 1.1 crores, so you try to drag it as much as you can to 1.1 crores
So you should try that it should be done in from 1.07 to 1.08 at all.
You have profit in that if a buyer likes that property then it will definitely do it to you at the market price.
We have already talked about this, try to close the deal
As much closer to your figures let's say your figure is 1cr
Then try to close the deal to your figure with a buyer
After that matter comes, once you have done the final figure
Let's suppose for this property you have close a deal for
1.07Cr, that is your final figure come
After that, you write an Agreement of sale
What is in the agreement of sale,
Firstly you collect an advanced from the buyer
Advance, in general, is around 10% of the property value
If the property is around 1cr, so you can take advance up to 10lakh
So you will sign the agreement of sale with the buyer
Buyer and seller both have to be signed
And it has to be notarized as well
I have made a detailed video on an Agreement of sale
What kind of clauses are written on that, then you must watch my video of this
You will get a complete idea that what are the clauses written on an agreement of sale.
Even then I highlights some points here
You will write a complete term of payment, and its time period
Generally, 2-3 months are given to the buyer for payment
So he will pay you in 2-3 months and you can also Write how
Much payment will be done in how much time, for an example
20% Payment is to be made within 15 days, 50% is to be paid within one month, 75%
Is to be made within one and a half months and the remaining 100% will be paid within two and half months
Apart from that, default penalty is also written, If let's say buyer defaults, means refuse to buy after signing a agreement
So what will be the case then what happens in general that 10% to advance generally forfeit.
And in the same way, if the seller default, what penalties on it
So in this case, the double of 10% is returned to him
So all these details, I covered in my video of an agreement of sale, so definitely watch that video of mine.
So once you have negotiated and signed the agreement, the next step is that you will collect all the payments
As per the payment schedule
So whatever 2 or 3 months the time you have kept for payments, then the buyer will start the actual payment.
If he defaults then obliviously he has to pay the default penalty
After that your next step is, let's say you borrowed a loan against this property
Then what happen
In that case, actually, 3 cases arise
1 is the buyer taken a loan from the same bank from you have taken the loan
In that case, a tripartite agreement is signed between the buyer, seller and a bank, then the bank does not again do the
Background check of the property, Therefore the loan processing is fast in that case
And the part of the new loan, suppose the loan was outstanding earlier, suppose the loan of 50 lakhs was outstanding, I am writing here outstanding
Now suppose the new buyer who said that now I have a requirement of 80 lakhs
Then 50 lakhs out of 80 lakhs will be cleared for outstanding and the remaining 30 lakhs will go to the seller.
Then the bank settles the outstanding of 50 lakh and the remaining 30 lakh is transferred to the seller
So this happens when you apply loan from the same bank
Second case if the buyer takes a loan from a different bank in of case loan processing take a time
Because the background check of the property has to be done again
Or the buyer's bank, suppose, in an earlier case the bank was same let the bank 1
In that picture bank 2 has also come, what will bank 2 does
It pays the outstanding amount of bank 1 and pays the remaining amount to the seller
So in this case like 50 lakhs is outstanding then this 50 lakhs will be cleared to bank 1 and the 30 lakh will be a payment of the seller
Now the third case inside it is If the buyer takes no loan.
In that case the buyer gave full payment from savings
Sorry, I have written it by mistake, have to write the seller here
So the buyer will give the entire money to the seller and the seller will settle its loan outstanding
Once 80 lakh rupees comes to the seller, then he will give 50 lakh rupees to bank 1 and the rest 30 lakhs come to the seller
In this way, you can settle the home loan and about a home loan I have made a video about the complete process of home loan
If you want to know the complete home-loan process then you can watch my video on home-loan process and document
Now let's talk about next step
We talk about the under-construction property, generally, the process of an under-construction property is the same
Under construction property which you have booked with a builder
If you booked a property with the builder and for later want to sell it
Suppose you did not register the property before the sale deed but you want to sell it before this
The whole process remains the same but you should keep one thing in mind
That the builder charges you extra transfer charges, So whenever you transfer the property over the new buyer name
You can be charged extra from let's say ₹ 50, ₹ 100, or ₹ 200 up to per square feet.
In the case of under-construction property if you did not make a sale deed then stamp duty & registration not be paid twice
Only transfer charges have to be paid extra
Stamp duty & registration will be paid by the new buyer, the new buyer will be considered as the first buyer in the govt. records
This point on under-construction, which I wanted to highlight here
After that now we come to the final step, which is your sale deed once all the payment is done as per the agreement of sale
If all the term is followed, then you get the sale deed registered in the name of the buyer
Then you get your sale deed registered by going to the sub-registrar office
And here you can also take help from the broker if you engage a broker
Otherwise, you can take the help of a local advocate who will do all your documentation
suppose if a buyer takes home a loan then in general bank give a final demand draft on the date of the sale deed
So once you get the sale deed, then the bank representative will give you the final demand there.
Once you collect the demand draft and sale deed is executed
Then you have to handover all the original property documents
T o the buyer
So once you have handover the entire property documents
To the new buyer then that ownership is transferred
And the new buyer become the actual owner
So this is the whole process to sell the property
Hope that you must have got some tips from it
Hope you have liked this video, how you can get the right valuation of your property, market it
And sell the property at a reasonable price
So if you like this video then sure do like and share
And if you have any thoughts or suggestions, then you can comment below
You can also suggest a topic for the future video
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So that's all in this video, See you in the next video
Till then keep learning, keep earning, and stay happy as always