We’ve all been hearing from people around us about how real estate is a steady asset class & how people consider it a ‘safe’ bet among other investment options like equity, bonds, gold & bank deposits. Well, they’re mostly correct
But what’s worthwhile noting is the fact that the ‘steady’ tag comes with its own price – The price of illiquidity. Real estate is considered, not without reason, the most ‘illiquid’ of assets to sell. Investopedia defines illiquidity as
“The state of a security or other asset that cannot easily be sold or exchanged for cash without a substantial loss in value. Illiquid assets also cannot be sold quickly because of a lack of ready and willing investors or speculators to purchase the asset”
So how do we sell an apartment in times where supply outnumbers demand & buyers are spoilt with enough choices in the market. With Bangalore alone having about 84,000 new apartment units out for sale, its indeed a tough task for a home owner to sell his/her existing apartment.
We have complied the following tips that house owners can follow to reduce their selling cycle & make the best returns in the process
Pricing, evaluation & clear titles
First & foremost, speak to real estate agents in your neighbourhood & assess the fair price of your apartment. Never be in a hurry to dispose of your property. You might end up getting a bitter deal & it might haunt you forever
Price of an apartment is typically a function of the following variables
- Prices of new apartments in the neighbourhood
- Perceived brand value of your builder
- Proximity of schools, colleges, workplaces
- Proposed development in the neighbourhood(mall, metro station, expressway etc)
- Overall macro-economic conditions
Ensure you get the pricing right at first go. Most apartment owners get into the vicious cycle of over-pricing the apartment, getting rejected by genuine buyers & end up doing a distress sale. Also, keep copies of relevant government documents handy during the sales process. These include property taxes, water taxes, ownership deed, NOC from bank & the society etc
Let your neighbours select their neighbours
Humans have historically evolved as social beings whose behavior get influenced by the society they live in. What better than create a nice video profile of your apartment & hand them to your existing neighbours & let them select their new neighbours?
This also eases your burden of going through the painful process of looking out for a seller while your neighbor could have a prospect who might be ready to move in!
De-Clutter your apartment, seriously
Apart from having the whole apartment cleaned with professional cleaners, ensure you de-clutter the space. Frankly, nobody likes a home that’s full of stuff dumped all over the place. Ensure you clear all your personal belongings like portraits, memorabilia before a prospective buyer visits your place.
You must make your prospective buyer feel he/she is buying a house of his/her dreams & its imperative that they aren’t reminded of who owned the house before
Ensure its in ‘Move in’ condition
Most prospective buyers shell out their entire lifetime savings to own an apartment of their dreams. It would only delay the sale if the apartment needs more work in fixtures, plumbing etc. Give them an impression that they could move in immediately & start enjoying their dream home
Sweeten the deal
Now that your buyer is almost close to signing the deal, surprise them with a sweetener in the deal. One of the major pain points for most new buyers is the cost they incur towards paying maintenance charges every month. You could pay it to the society in advance & make it a selling point while closing the deal