[ecis2016.org] We examine some mistakes that sellers are prone to making that could lead to a sale deal going wrong and ways to avoid such a situation
Housing sales have started to inch upwards after a prolonged dry spell owing to the Coronavirus pandemic. ecis2016.org data show that home searches in August reached the pre-Coronavirus level, as buyers were prompted to make investments on the back of discount offers and record-low interest rates.
You are reading: Common mistakes by property sellers in India and how to avoid them
Since buyers are eager to find a good deal and get possession of their properties at the earliest, they are more likely to choose ready-to-move-in homes in the secondary market. This, in turn, improves the chances of a seller closing a deal right now, especially with the festive season approaching and home loan interest rates at a 15-year low. However, sellers can make the most of this opportunity, only by being extremely cautious. We look at some mistakes that could break a deal and how to avoid being in such a situation.
Trust the intentions of the buyer
Often, sellers continue to show mistrust with regards to the buyers’ intentions. They may wonder whether the buyer is just window shopping or has real intentions to make a purchase. However, at present, because of the economic stress due to the COVID-19 pandemic, not many people are in a position to invest in property. Whoever is still approaching a seller for the purchase, is likely to be a genuine buyer. This means if you are lucky to get a buyer at a time like this, you should make the most of the opportunity.
There is another reason why you should be more trusting of the buyers’ intentions. With remote working becoming a mainstay in people’s professional lives, buyers are currently looking for spacious homes in cities’ suburbs that would also have space for a home office setting. According to housing.com data, developers currently have over 7.38 lakh unsold units spread across eight prime Indian residential markets. Developers are seen trying every trick in the book, by offering discounts and rebates, to attract buyers. Needless to say, if a buyer has still decided to stick with an individual seller, they mean business.
Negotiate monetary aspects politely
As a seller, you are there to sell a product for a specific amount and that is the most crucial point between the buyer and the seller. Nevertheless, sellers often come across as too aggressive, while discussing this part of the deal. Often, to gauge the capacity of the buyers, sellers tend to make inappropriate remarks such as:
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“How much money do you have right now?”
“What kind of earnest deposit can you provide?”
“Do you think the bank will give you that kind of loan?”
“I am in a hurry to close the deal. How soon can you make the entire payment?”
Avoid asking rude questions like these, about the purchasing capacity of the buyer. Even if you are unwilling to accept any price less than your asking price, there is a polite way to do so. Statements like, “I won’t accept anything less than the asking price,” may be too rude. “I am afraid, I can’t offer you any more discounts right now,” could be a better way of putting across your point.
While you may have a prized asset that you would not be willing to let go of, below your quoted price, this message must be conveyed in a polite way. You also have every right to know about the buyer’s source of finance but ask these questions without being intrusive.
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Soft skills necessary for sellers to close a deal
The market is full of options in every price bracket. Hence, a buyer may walk out of a seemingly well-progressing deal at any point, if they are rattled or displeased. This could be especially problematic for sellers who are in urgent need of the liquidity that the property sale could provide them.
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As buyers are actually spoilt for choice, it makes it extremely important for the seller to deal with them more carefully. This would require the seller to be mindful of certain behavior patterns.
Come across as genuine: Buyers and sellers both seek genuineness. While coming across as aggressive is a mistake, do not be too sweet either, while negotiating with the buyer. This could trigger a doubt in the buyer’s mind about the whole deal. Frauds often resort to such tactics in order to dupe buyers. In the absence of a platform like the real estate regulatory authority (RERA), buyers in the secondary market do not have a fixed authority they could approach, in case of any wrongdoings. This is why they are extremely cautious, to avoid potential frauds.
Avoid making personal comments: Even though property transactions are a monetary prospect, sellers do have to make certain enquiries about the buyer’s personal life, to understand who they are dealing with. However, restrict your questions to only those aspects of the buyer’s personal life, which will impact the sale in some manner. In case you have any reservations about dealing with a particular buyer, you could let them know right towards the start that you do not see the possibility of the deal going through.
Also, be ready with all the property documents, so that the buyer can get his lawyer to have a look at them and establish the authenticity.
Maintain transparency: Sellers often take offence if the other party is too inquisitive, especially if they feel that they have the upper hand in the negotiation process. However, as a seller, it is your responsibility to be forthcoming, when the buyer asks his own set of questions. You should be willing to provide all the information that the buyer seeks, with respect to the property.
Do not lie: Even if you are in contact with other buyers for a possible deal, you do not have to advertise it to the one you are currently dealing with, to try and push them to close the deal sooner. Bluffing about it, on the other hand, is likely to cause undue harm to the whole prospect.
Do not exaggerate about the property: While the buyer must be told about the various merits of the property, ensure that you do not go overboard. A better way of conducting this business would be to let the buyer find out the plus points of the house on his own and assisting the buyer whenever required. Simply put, your role should be of that of a guide and not a running commentator.
FAQs
How is the market right now from sellers’ point of view?
Owing to the easy availability of fresh ready-to-move-in stock, buyers currently have a dominant position in the market. In a scenario like this, they would have greater influence over price negotiations, especially since builders are offering numerous discounts and rebates.
What kind of profit can sellers expect in a market like this?
Considering that demand is low, because of the ongoing Coronavirus crisis, profit margins will remain low at present. Sellers may have to reduce prices, to bring rates in line with the prevalent market rates.
How is the demand for homes in the secondary market right now?
As buyers are keen on investing in ready-to-move-in properties, because of the long waits involved in under construction homes, the demand for homes in the resale market is healthier now.
Source: https://ecis2016.org/.
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Source: https://ecis2016.org
Category: Lifestyle
