Selling a home is not an easy task. If you are planning to sell the home on your own without the help of a seller’s agent, you need to keep a few things in mind before putting your house on the market. Not planning everything properly can lead to all sorts of problems later on.
To help you steer clear through the home selling process, here are a few tips for the first time home sellers:
Don’t Overprice your Property- Deciding on the correct price for your property is the most difficult part of the sale. Though the Real Estate Prices in India have always been appreciating, you should not set an unrealistic price for your property. A little market research is needed for coming at the correct price since the purchasing power of the buyer depends on several economic conditions.
Make a List of Important Documents–
Documentation is also one of the most important tasks. If you have bifurcated the price of your property according to the parking spaces, modifications, etc., mention the same in the deed and keep a proof of it handy. It should also contain a record of the property tax you paid and about the home loan closure, if you opted for it. It is very important to maintain a file of all these documents as they will be needed for the income tax returns you file for the year of sale.
Streamline the Funds into New Property Purchase- Most of the people sell houses with an intention of buying a new one. The funds generated from the sale of your property should be used for the next property purchase within three years. The verification of the same is very important for the income tax purposes.
Plan for the Capital Gains Tax- According to the Income Tax Act, if you have sold the property within three years of its initial purchase, you have to pay short term capital gains. But if it’s sold after three years, long term capital gains tax will be charged. So, plan for the same in advance.
Consider the Address Change–
Soon after the house is sold, you should update your new address at banks, post offices and other important people who need to keep in touch with you for further proceedings.
Selling your home is an arduous task but don’t let it create hassles for you in the long run. Plan in advance and sell smart.