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DISCRETION HELPS: Adopt a cautionary approach while putting your house on sale.

The news of someone selling a house brings to mind the scope for a cheap buy. However, not all sales propositions benefit the buyer.

Why do people sell their houses? After all, is not a house meant for permanent living? It may look as simple as that, but if we go deep into the matter in the broader perspective of the fast-changing socio-economic environs, the issue can be complicated. In the good old days of the joint family system, the ancestral house always came to one’s rescue when shelter was needed — and shelter was all that people mainly wanted. The position changed when the younger generations branched out for reasons such as job requirements, new business vistas, migration to towns, cities, other States and countries. Separate houses were built or bought by them to set up their own families.

Small towns gave enough scope for building spacious bungalows with lawns, servants’ quarters and car sheds, leading to luxurious living. As the towns grew to large cities and some cities became metros, shortage of space to accommodate the growing population compelled vertical expansion of houses or apartments. In due course, the unchecked and haphazard growth posed pressure on roads, public transport, water supply and drainage. Consequent on the increase in number of vehicles, pollution too became rampant, leading to health hazards. The high cost of living, noise, shortage of goods and services and, above all, the absence of a peaceful environment to live in one’s old age compel people to think of relocation as the only way.

Some of the factors that make people relocate are:

•Inadequacy of space in the present house.

•Increase in the cost of land, holding out the promise of a handsome price for the old house, a part of which can be invested in buying another property in a less-costly and less-congested locality in the same place or in another town.

•Lack of lung space because of rapid growth around the present place of stay.

•Possibility of building a multi-storey apartment or business complex for better monetary benefits.

•Wish to have a less-stressful living

What is required to be done to sell your present house faster and at a reasonable price? Full knowledge of the market conditions, such as whether the market is generally on an uptrend; deals going on in the area; prices at which the recent deals have been struck; availability of good and reliable real estate agents, developers and promoters of good standing; regulations governing sale-related matters applicable to the house; stamp duty and registration charges; and tax implications.

If your house is a little old, say 20 to 25 years, the building may need repairs or renovation, which may be carried out before you spill the news of your intention to sell. The repairs should include essentially of the bathrooms, closets and kitchen. Touch up of painted and varnished surfaces will give a well-cared look and add aesthetic value. Similarly, clean and tidy the house and the courtyard, if any, to give a good first impression to the prospective buyer.

Some people abhor the idea of middlemen in selling houses, furniture, cars and so on, which may not always be the right thing to do. Paying brokerage or commission alone should not deter one from approaching a reliable agent. The agent, with years of experience, will be in a better position to execute a clean deal, as, otherwise, you will have to haggle with many prospective buyers, some of whom may not be genuine.

Essential requirements in handling the sale of your house are many and vary from deal to deal. The important legal and taxation issues are documents to be executed and exchanged, absolving the seller from future tax payments; capital-gain-related investments and deposits; accounting of full value received; payment of stamp duty and registration charges and so on.

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