It is common for people to assume that the market dynamics for land are the same as those for constructed properties. However, that is not the case. Post-COVID-19, the demand for residential plots has increased by leaps and bounds. Today, many people prefer to have a customised property to cater to their new normal requirements rather than investing in a pre-constructed development. This hike in demand and value of residential land has made it the most opportune time for landowners, who were long waiting for their assets to appreciate, to reap high returns. However, as landowners sell their properties, thorough planning and research are vital to close a lucrative deal. Here are five judicious tips for selling land in India.
From right pricing to staying abreast with the market trends, there are several aspects to consider before selling your land. Even if the market is on the boom, you might end up incurring hefty losses if you do not strategise and plan judiciously.
Understand the market trends
The first step is to conduct an in-depth analysis of the current market trends to determine the right market value or price of the land. A thorough knowledge of the market trend will safeguard you from selling your property at a deflated rate. Keep an eye on the market values of similar plots nearby and compare their advantages and disadvantages with your land. Also, monitor the demand-supply dynamics in your area. This can prove to be your leverage point. For the uninitiated, the property price is inversely proportional to its supply. The lower the supply, the higher is the price and vice-versa. You may also opt for a property valuation process. Although this would involve a fee, you will get to know the accurate market value of your land.
Consider the location
The location of a property may also impact its value. For instance, land near a cremation ground may not earn returns as high as a plot along an expressway or near a metro corridor. Similarly, a corner side plot would always command a premium compared to plots in a row. Besides, in India, the Vastu of the property is a crucial factor that determines its value. Before purchasing a real estate asset, many investors consult Vastu experts to ensure that the investment brings prosperity. Any irregularity or deformation in the shape of the plot may affect the land value. Hence, to avoid any complications, you may consult a Vastu expert and undertake remedial measures to correct the irregularities. If you already consulted an expert at the time of purchase, you may skip this step. However, if it is a gift or an ancestral property, it would be wise to seek advice from a Vastu expert.
Find the right channel
While many people prefer the traditional method of hiring a real estate agent to sell their estate, online portals have become one of the crucial mediums in the post-COVID-19 world. Listing your property on a credible property portal like 99acres helps you advertise the property features and amenities, find a prospective buyer and complete the financial transaction online sans any hassle. Besides, property verification services and high-resolution photographs are some additional premium benefits offered by such portals. These services distinguish your property from others in the area and expedite sales.
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Alternatively, if you choose to hire a broker, there can be several challenges. According to Abhishek Pandey, Proprietor, Property Baskets, “The land value dampens when it is circulated among several dealers. Non-professional dealers may lead to a price reduction of the land. Hence, sellers should conduct a thorough background check before hiring a real estate agent and connect only with a reliable professional to get the best price for their land.”
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Maintain the land
Land with significant weed growth and improper fencing may disappoint the interested buyer and delay the deal. The foremost thing that every buyer considers is the appearance of the land. If the land does not appeal to the buyer, they will not be interested in taking things further, even if it matches their interest. Thus, maintain the land frequently and keep it in top-notch condition.
Be patient
When a buyer exhibits interest in your land, do not jump at the deal. Buyers may sense your eagerness and negotiate for a lower price. Thus, be calm and patient.
“The market for residential land is flourishing presently. Out of 10 buyers, seven are interested in purchasing land. Areas where land supply is high can take a longer time to seal the deal as the buyer has multiple options to choose from. However, localities where land demand is high and the supply is low can witness quick sales. In most regions, the average time to sell land is 2-4 months. However, it majorly depends on the demand and supply of the land,” shares Pushpendra Kumar, Owner, Realty Bytes.
Legal documents of land, such as the title deed, No-Objection Certificate (NOC) from the bank and the previous seller, and encumbrance certificate, among others, are also crucial and should be intact to fast-track the sale process.
Undeniably, selling land is tiresome, but proper planning can make it effortless. Whether you are just getting started or need to realign your efforts, the above-mentioned tips for selling land in India can help. Decide your course of action and keep the documents complete and handy to avoid any hindrances and get the maximum capital returns.
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