Want to sell your house, but don’t have much idea of the property market? Are you also not aware about the basic steps to take before putting your property up for sale or the regulatory requirements that you have to comply with before selling? Don’t worry.
In an exclusive interview with Sanjeev Sinha, Mr Vikas Wadhawan, Group CFO, Housing.com, PropTiger.com & Makaan.com, shares his views on how to sell your house fast and at the best possible price. Excerpts:
What are the few basic steps one should take before putting up one’s property for sale?
All your property documents have to be in order. You will have to produce all of them at the time of sale. Don’t keep any documentary work pending. Hence you must clear / regularise all your property taxes and utilities payments before you approach the market for sale as you would be required to produce the latest property tax payment receipts.
If it is an old piece of property, get basic repairs done. A fresh coat of paint is always a great idea.
What are the few regulatory requirements that one has to comply with before selling? What are the documents that need to be kept in hand?
Even in the case of sale of private residences, you may require permissions of various authorities to make the transfer. In case you are a member of a housing society, you will have to comply with RWA rules regarding the sale. On the profit earned through the sale, you are liable to pay capital gains tax to the government. Even though the buyer will be paying the stamp duty and registration charges for the transaction, you have to be a party to the entire legal proceedings as well.
Among the papers you have to keep ready when selling a piece of property are the conveyance deed, share certificate, latest property tax payment receipts, your identity proof, your address proof, etc.
What is the best way to assess the price and find a buyer? Should one go through brokers or online platforms and what are the benefits/ disadvantages of choosing them?
Conventional methods of assessing the value of property may not be very effective — like taking a cue from your neighbours or discussing the matter with friends and family. A bank lending money for the purchase of this property may beg to differ, first, with your methodology, and second, with the property value you have come up with after a rather private deliberation.
The best way would be to first assess the price by searching through online real estate portals for initial research in terms of what’s the ongoing price in the market. Post this we can seek the help of professionals. Online real estate firms offer you these services at highly lucrative costs these days aside from helping you sell your property faster by helping you get a larger number of buyers.
What happens if you want to sell your house when you haven’t closed your home loan?
To sell such property, you will have to get in touch with the bank, which will issue you a letter, stating your outstanding liability. After this credit is repaid, the bank will return you your property papers, and you can proceed with the sale. This letter you can produce to the buyer to arrange the money to pre-close the home loan. In case, the buyer himself is looking for a housing loan, he can apply for a housing loan from the same bank. In case the buyer would go with another lender, the property documents will be handed over to the new lender from the old one after the former pays the outstanding amount to the latter.
What are the current tax implications of selling a piece of property?
The seller has to pay 20% capital gains tax if a piece of property is held for two or more years. For properties held for the short term, gains are taxed as per slab rates.