In our childhood, we have learnt that area of a rectangle is simply length x breadth. However, in the complex (and sometimes murky) world of real estate transactions, calculating the area of property you own can be a very involved process.
Developers and Builders have come up with various terms to mislead, confuse or take advantage of buyers.
- Carpet area, as the name implies, is the horizontal space within the confines of the external walls of your individual home unit.
- Built-up area is the carpet area + balcony + half of the terrace area + plinth area (horizontal footprint of vertical elements like walls, windows, doors and AC ducts). This is generally 10% more than carpet area.
- Super built-up area is the built-up area + a share/portion of common areas like corridors, lifts, lobbies, entrances, passages, security-outposts, DG room etc, and amenities like clubhouse, amphitheatre, gardens, swimming pools and play-areas. This is generally 25% more than built-up area.
It’s important to know how these terms will make a difference in your transactions, and lifestyle.
- Purchase: The difference between the built-up area and super built-up area is called loading factor. In most apartment complexes, this is approx. 25% while large villa projects with abundant greenery can have a large loading factor. Builders just quote on super built-up area, which is at an advantage to them.
- Sale: However, at the time of sale, one will realize that the saleable area is actually lesser than the super built-up area, which is at a disadvantage to the home owner.
- Maintenance: Maintenance is generally calculated on the super-built up area, so villas in a large gated community can be more costly from a maintenance perspective.
End of the day, one’s buying decision depends on budget, desired lifestyle, and negotiating power at the time of purchase. Bear in mind all of these facts to ensure a good deal.
One of the common asks we have at Clapdoor is how can a homeowner sell his or her property quickly. In fact, when we looked at the commonly used phrases by Clapdoor users to search on Google before landing on our website, we found the following phrases, all within the top 20:
sell my property fast
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While we do not recommend trying to sell your property in a hurry, we definitely understand that many times one does not have the luxury of adequate time. It turns out selling property in India is not as complex as people think; it can be done at a relatively short notice provided you follow the below steps.
- Titles: Ensure the property you want to sell is in your name without any ambiguity.
- Outstandings: Ensure there are no bank loan EMIs or municipal taxes pending.
- Advertise: Advertise in local newspapers, portals and neighborhood bulletins with your contact details.
- Agents/Brokers: In case responses to the ad are few, hire an agent for quick leads.
- Cleaning: Even as you examine the responses, clean and paint the property to get a good price.
- Awareness: Enquire about recent sales in the locality to know the current market price.
- Negotiation: Include a negotiating margin in your price as smart buyers will find reasons to reduce the price.
- Honesty: Avoid false information about your property.
- Be clean: Insist on full payment in white to avoid Income Tax hassles at a later date.
- NOC: Get a no objection certificate from your housing society and municipal authorities.
- Sale Deed: Hire a property lawyer to create a sale deed on stamp paper. If buyer is taking a housing loan, ensure the bank makes a cheque for the full amount.
- Notarize: The sale deed must be signed by both parties in presence of a magistrate or Authorized Notary.
- Handover: Handover all keys of the property – both originals and duplicates, to the buyer.
- Inform the authorities: Inform the local Municipal Corporation of the sale so that you are free of all liabilities.
- Hire a CA: The sale deed and investments made from the sale must be factored in your IT Returns for that financial year.
- Preserve: The sale deed copies must be preserved carefully for your lifetime.
Selling property requires the right kind of skills, and intimate knowledge of the market. If one does not possess these, it’s good to hire an agent to sell your property. The agent can arrive at the right price, find multiple ways of marketing your home, identify the best buyer, and finalize the deal in the right timeframe.
However, please note a couple of things while finalizing the right agent.
- Identify a couple of agents initially: Start with a large pool of agents by enquiring with friends and acquaintances. Be aware of their specialties: commercial/residential, apartment/villa, independent homes/clusters etc.
- Be clear on financial terms: Agents in India charge from 2 to 4% of the sale value, depending on the kind of property, location and experience level. Be clear on this and avoid hidden terms and conditions.
- Ensure the agent is professional: The agent must be committed to satisfying you. If he/she appears too eager to sell, too aggressive with the terms, be suspicious. Such behavior will turn off the buyer and his agent.
- Assess his/her knowledge: Probe the agent’s knowledge of recent buying and selling trends, demand in each category of property, recent prices, etc. Be suspicious of agents who always promise you quick sales at top prices.
- Find out his/her loyalties: Is the agent a Freelancer or works for a large agency? Is he/she also bringing in the buyer? In case of the latter, be careful. The agent may not present multiple options or the best prices as the buyer is also represented by him/her.
End of the day, it is your property and you are entitled to the most reasonable terms and conditions. Select the agent who can assure this and avoid conflicting situations.
Selling property in India is not that complicated and can be done without the help of real estate agents who charge a hefty commission. Just follow these steps and you can do it yourself.
- Do your groundwork: Research the internet or consult friends and relatives to familiarize yourself with real estate terminology, buying and selling procedures etc.
- Get the paperwork in order: Ensure you have all the legal documents in place such as property papers for appraisers, insurance documents, No objection and encumbrance certificates from the municipal authority, etc.
- Give your property a makeover: Property buyers look for defects and flaws in your property to negotiate down the price. Preempt this by painting, plastering, repairing and fitting new fixtures so that the property looks good.
- Price the property correctly: Research the internet to know the latest property prices in your locality. Realty portals like Clapdoor carry such information. Be aware of limitations in Vaastu, access, age of property, etc that may require some flexibility from your side.
- Market your property well: Get on to the Internet. Use social media and Realty sites to post your sale intentions. Spread the word around your acquaintances. And finally put up a ‘For Sale’ notice on the property with your contact information.
- Check out your prospective buyer: Ensure the buyer does not have a criminal record as you and the sale can get into trouble. Avoid an all cash transaction.
- Prepare a sale deed: Take the help of a property lawyer and draft a sale deed with all terms and conditions clearly spelled, sign the same and get the buyer’s signatures. Make copies of the same.
- Be ready to be present for the registration: It’s the buyer’s responsibility to pay stamp duty and registration but you will have to be physically present at the Sub-registrar’s office during registration.
The boom in real estate in India has increased awareness on buying and selling procedures. Follow the right steps, learn from others’ mistakes, and you can eliminate the need for agents.