Selling a residential property in India is no longer a cakewalk. It requires a lot of planning, strategizing, perseverance and patience. At times, property owners get carried away with the advantages their properties enjoy in a given period of time and do not pay heed to the incoming offers.
After some time they realize that had they sold the property earlier they could have got much better returns. You can find several such examples around you.
Recently I met a person, Rajeev Mishra (name changed), who was getting Rs. 3 crore for his residential property in Ramesh Nagar, New Delhi in the year 2012. The offer came from a builder who was willing to redevelop the house and develop 3 independent floors out of it. With the prevailing scenario, he could have priced each floor at Rs. 1.25 crore and made some good returns on his investments.
But Rajeev declined the offers. He received more such offers but did not close any deal. By 2014-15, the market started moving in the other direction. Now he decided to sell his ancestral property. To his dismay, no one was willing to pay more than Rs 2.5 crore for the same. A clear loss of Rs. 50 lakh in capital values in a couple of years!
This is the story of several people. That is why property selling is no more a sporadic affair. You need to keep track of the markets and leverage positive market environment. In a good market, everyone stands to get the benefit but not for a long time.
At times, people adopt a wrong approach and do not want others to make profits. Rajeev, for instance, did not digest that a builder could make some money out of his property. But then it was all worth it. Redeveloping a property requires painstaking efforts and then one has to sell the properties as soon as possible. Otherwise, the returns on investment go down.
A property owner has to have an open mindset. In a stock market, equities have lows and highs. No one can time it and buy at lowest value and sell at the highest. One has to keep going and that is how markets work. You cannot grab all the profit.
There is another common issue which mars the prospects of a property and that is overpricing. Property owners tend to overprice their properties in order to make a killing. Many people think that pricing the property a notch-high helps in negotiation and they are in a better position to close the deal at an expected price.
This approach does not work these days. The real estate sector is becoming an increasingly open and transparent market. As the buyers can now check the properties prices on their devices in a few seconds. Also, the prospects carryout the research of the going rates and if your property is priced at an unusual level, they could simply rule it out from their list.
You may even not come to know how many prospective buyers you would lose as they may not even approach you. This is why it is critical that you price the property at a right level.
Overcome these approaches and beliefs and sell your property for bigger ROI!!!