Selling a house is very emotional decision until & unless you have bought the same for investment purpose. 1st thing which comes to mind is How to Increase Resale Value of Home? I will share some tips & tricks which can help u to increase resale value of home by 20%-25%
1. Vacate the house before sale:
Yes, you read it right. This is biggest mistake many people make that they put occupied house for Sale. The reason is occupied house looks 30%-40% smaller compared to vacant house. Secondly, in occupied house potential buyer cannot judge the exact space available, thanks to human mind which create image based on what it see. To increase the resale value of home, it is most important to vacate the house and then search for potential buyer.
2. Get the House cleaned and Paint it:
Hire professional cleaners, reason they do very decent job and also get the house painted post cleaning. Never use very dark colors becoz most people don’t like dark colors. On safe side, house shud be painted with light cream color.
3. List down all the advantages:
You are brand ambassador of your house. List down all the advantages including location, amenities, ventilation, rent it can fetch, proximity to school etc. Most important don’t try to de-sell the neighboring properties reason it creates negative image about your locality. Only highlight advantages of your house.
4. Keep all property documents ready, Required for Sale:
Potential buyers always shortlist 4-5 properties before finalizing the same. The golden rule of sale is “Never give time to buyer to think second time”. Most of the sale deals are called off due to delay from seller side to provide property documents. Secondly, till you arrange property documents buyer has time to check out other properties and if he liked any other property then he will call off the deal. Lastly any delay in arranging documents raise suspicion in the mind of potential buyer.
5. Reason for Sale:
Whatever may be actual reason for sale, you should tell most safe and reasonable reason for sale. Buyer is most keen to know the reason for sale. Trust me reason for sale can make or break your deal and also the resale value. If u are in urgent need of money and if buyer knows this then he will negotiate hard. Reasons, he knows that urgent need of fund is your weak point. Some of the safe reasons for sale are (a) You are shifting with your parents becoz they are alone (b) You have another house & you are shifting in that house
6. Future Prospects of Real Estate Market:
Even if anyone is buying a house for end use but at the back of mind, second most important calculation is what is the potential of property appreciation. Pls highlight the future prospect & future trend of Real Estate prices of your Apartment and Locality.
7. Convince Female Member accompanying the Buyer:
Last but not the least & whether you believe or not. Women has final veto power to buy the house or not. Instead of convincing buyer (if he is male) focus your 90% energy to convince the Wife, Mother or Sister of potential buyer. If the purchase is not for investment then definitely some female member will come to see the house. If female member accompanying the buyer is convinced then buyer will definitely close the deal at any cost. This is called Women power.
Hope these tips will help to increase resale value of home & you found these tips useful.
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Hello Nitin Sir
I am Planning to Purchase a home for Personal Use and Just started searching and researching the market. Also i am waiting for my increment to active from June month Salary so that I will be eligible for higher amount home loan if needed.
I got my CIBIL score 808 with out any blot in my report. My issue is that I have only 2 Consumer durable loan which was paid on time. One Personal loan Inquiry which was rejected 7 years back Due to non availability of Credit report. One EMI Card From (BFSL)Limit inquiry of Rs 50,000/- which i have not used yet. I am not using Credit card not even applied before.
How bank or HFC perceive my application. what is the probability of Sanction of Home loan.
ManindraNath
I don’t think so that you will face any issue in Home Loan due to CIBIL score. The loan inquiry will not impact your loan application provided it is not availed by you.
Hello Nitin Sir,
We are planning to sell our house and relocate. However the house is in the name of my Grandmother who is alive but she does not have a bank account in her name. So how could we structure this transaction so as to avoid any hassles and also have minimal tax implications.
Thanks in advance.
You can open bank account of your grand mother and also apply for PAN in her name. After that you can sell the property.
Sir, thanks for your reply,
we are planning to buy a resale property in the name of my wife n myself. We will have to use the proceeds from the sale of aforementioned old house. So which option would be more feasible in terms of tax savings.
Option 1 : Transfer the house from grandmother’s name to my name by the way of Gift (if possible) and then sell it so that the proceeds can be used so as to save any long term taxes.
Option 2 : Sell the house and collect proceeds in gandmothers account. and then transfer the money to my account as Gift. and then use the money for buying new house.
Or is there any other suitable option available ?
Thanks in advance.
Option 1
Thanks for your reply.
In the case of option 1, is there any rule which does not allow me to sell the property for a specific period of time ?
There is no such rule until unless your grand mother include any such condition in gift deed.
Thanks for the info.
Also, my grandmother is almost bed ridden now. Wont be possible for her to go to registrars office for executing sale deed for the sale / transfer of property.
In that case what solution do you propose, which shall make the whole registration process simple for her.
You need medical certificate from CMO to avoid any future legal hassle. After that she can execute POA in favour of any other relative who will execute the gift deed.
Hello Nitin Sir,
I hv finalised a shop @ 8 yrs old in New Mumbai. Circle value of the same is Rs 26 L . Seller wants to give at lesser value than Circle value as shopss are not getting sold. Are there any Income tax related issues in such case and if it is what are those.
Shrikant Ramchandra
There is no issue.
Thanks Sir.
Dear Sir,
Many C A and Agents are telling me possible 100% fine and income tax on value difference. I am bit scared to go through the deal but at the same time I don’t want to loose this shop for my dispensary. Should I proceed with the deal?
You pay stamp duty at ready reckoner rate else no issue.
Many Many Thanks Sir.