Life is a changing hub. You may wish to stay in one place all your life. But, a sudden thrill like job relocation, financial issues, etc could mean selling your home at lightning speed. This leads to a stress-full sale process. Negotiation deadlocks, buyer’s infinite demands, and unreliable agents pave the way for landmines. The key to happy selling is navigating through an effective process. Don’t worry, we have synthesized a phased approach to sell a house in Pakistan with a comprehensive and clear guide.
Step 1: Repair Your House
The price of a house is highly dependent upon its condition. A leaky roof, damaged ceiling, or busted wires can delay your home sale. Even if you try to defer maintenance it will be uncovered during the buyer’s inspection. And it’s a big turnoff.
Start by getting a home inspection to break down the repairs of your house. Since buyers ask for a credit to fix the problems. The best practice is to address them beforehand. This will skyrocket the price value of your property and lure more buyers. Because people prefer to buy ready to move houses.
Kitchen and bathroom renovations can help sell your home at a higher price. It’s just like investing for a greater return. After all, money begets money. We recommend consulting an efficient real estate company like Green Earth. They know what local buyers are looking for in a house and will guide you accordingly about the refurbishment.
Step 2: Price it Right
Putting the right price tag is a tough call but must be dealt with diligence and rigor. Conduct detailed comparative analysis to sell your house in Pakistan. Look for property listings near your location. It will give you a ballpark figure of the value of houses in your area. And, whether you will face strong competition or not.
It’s captivating to overprice your home. You may even be able to score big. But, there is a high chance that a genuine buyer might ignore your offer because it’s out of his range. Not everyone likes to play negotiation games. Remember to quote a reasonable price.
Step 3: Decide How You’re Going to Sell
Old school print advertisements still matter. Even in today’s digital world, print media enjoys strong credibility. You can advertise your property, along with essential details, in a paper. According to the Economist Intelligence Unit, Pakistan ranks 76th out of 100 in terms of Internet usage. Hence, print media can help reach specific geographics where the internet is not that common.
Find A Reliable Real Estate Agent
Real estate agents play an integral role in the economic growth of Pakistan, according to the Federation of Pakistan Chambers of Commerce and Industry.
If you’re a novice, selling a property can be daunting and risky. You can get caught up in a scam. To avoid this painstaking task, get in touch with a top real estate company which can boost your odds of a swift sale. For a consultation, agents in Islamabad charge a 1% commission, according to Zameen. In commercial properties, the commission can jump to 2%. Confirm the commission rate beforehand to avoid any inconvenience and complication.
If you’re looking for a leading real estate agency in Pakistan, contact Green Earth. They will target the most solid buyers to gain lucrative capital out of your property. This doesn’t mean you will be able to sell overnight. But, through the company’s trusted reputation and developed relationships, your listing will be able to reach maximum prospects. Client satisfaction is their priority. Moreover, they will also market, set a competitive price, and prepare documentation for you themselves.
Who doesn’t like free advertising? Take advantage of free online marketplaces like OLX to promote your house. You don’t even need to have a super bowl budget. Such websites drive a fair amount of traffic, resulting in matchless exposure, globally. Social media is another popular aspect to advertise free of charge. Take tempting snaps of your property. And, post on different relevant groups on social media to get the word out.
Imagine you land a buyer. You both negotiate hard and finally agree on price value.
Now, what to do?
The initial step is to acquire a minor deposit or Bayana to reserve the property for the buyer. It is an official agreement that includes all general conditions of the contract
such as time frame, payment, and transfer, etc. Once it is paid, you are duty-bound to provide copies of original property documents to the buyer for verification purposes.
The amount of bayana depends upon the period to deposit complete payment. During that time, apply for a No-Demand certificate (NDC) from their respective housing scheme. We will discuss it later in this blog. If the seller backs out from the deal, he has to pay twice the bayana amount. If a buyer backs out, you can keep the money as a penalty.
No-demand Certificate (NDC)
NDC refers to an official certificate issued by the housing scheme in acknowledgment of no dues towards the property. It also comprises tax information, transfer fee, and stamp duty information. This document can be acquired from the concerned housing society’s office. After receiving your NDC, it is essential to provide a copy to the buyer.
Capital Gains Tax
Just like the mobile registration tax, property tax is a reality. For a country to flourish, every nation must contribute towards its prosperity. The main method to achieve a better Pakistan is to pay taxes. Sellers must pay:
- 5% capital gain tax(CGT) if a property is sold within three years.
- 7.5% CGT if sold after two years.
- 2.5% CGT if sold within four years of purchase.
Four laws impact the property selling process in Pakistan, namely Registration Act 1908, Stamp Act 1899, Land Revenue Act 1967, and Transfer of Property 1882. Although, your lawyer will carry out due diligence for your property. However, since knowledge is power, it’s best to have a general idea about them.
Registration Act 1908 was established to verify registration of real estate. It comprises 15 sections, featuring all necessary guidelines for property registration in Pakistan.
The Stamp Act 1899 imposes a stamp paper duty to make legal agreements upon selling and buying of real estate in Pakistan. It protects human rights by recording all contract conditions on a stamp paper.
Land Revenue Act 1967 consolidates complete structure of land revenue in Punjab. It also guides collection of land revenue.
Transfer of Property Act 1882 is about conveying the possession of property to another seller. It is a comprehensive guide to authentic property ownership, transfer operation, oral transfer, and transferable property types.
The last level is to receive money from the buyer at the concerned land development authority office. The officer signs an official document and transfers the property rights like usage rights, etc in buyer’s name. Next, a set of legal documents, containing property transaction details and registration documents is issued in favor of the buyer.
With the right methodology, you can sell your house even in five days. The key ingredient is good planning, so invest time and effort into the preparation of the process. If you’re a beginner, get in touch with the best real estate agency for this daunting task and leave the rest to them.