Most of us still believe in the fact that while selling the property the cost only comes in the head of the buyer. However, several expenses are there from the seller’s end as well and it will continue till the property transaction is complete. You must arrange these costs upfront before prompting for the entire transaction process
- Remodelling and Repair Charges: The sale Agreement will feature property repairing including an electrical or plumping arrangement to make it usable for the buyer. In addition, renovation or remodelling of these properties like repainting walls, reframing the kitchen, up-gradation of living rooms is there. These would also cost a significant amount of money before you want to Sell Your Property.
- Advertisement: For reaching out to potential buyers, you must follow some paid methods of advertising. You can hire a space in the newspaper promotion or buy a subscription from real estate portals. You will get to know more about these from agents or internet blogs.
- Brokerage: For hiring the real estate agent or broker, you need to pay his commission as per the deal. It may take up to two percent of the final transaction price of the property. There are some exceptions where brokers prefer to have a flat charge. These charges would vary from broker to broker.
- Capital Tax: This tax will depend on the duration you have to hold the property in your name. After you Sell Your Property, you will have to pay the capital tax if you hold it for at least two years. This tax applies to the gains earned from selling value. You may pay short-term pay in case the property you hold is of less than 2 years. The taxation is valued as per the income slab and you will about it more in the government of India portals.
- Foreclosure Charges: Pre-payment of a home loan or other foreclosure charges are expedited upon single payment of EMIs. If you have built the property using the home loan and you are going to pay the remaining loan by selling it, you need to pay a nominal foreclosure charge for it. Lenders charge about four percent of the pre-paid amount of existing fixed-interest loans. Go through the loan documents and hire a representative who will guide you about the entire process and the price to be paid. For loans with floating interest, foreclosure charges are exempted.
- Lawyers’ Fee: It is quite difficult to Sell Your Property without the maximum contribution of the lawyer’s help. All taxation and documents related issues are solved by the lawyer and you will pay a particular amount for it. The charge will vary as per your relationship with the concerned lawyer.
- Recording Fee and Transfer of Taxation Document: Title transfer is a significant task without with the transaction is never marked complete. You will pay the taxes unless the property papers and title are transferred to the new owner’s name. A recording fee is something that must be paid to mark the property debt-free without any dues.
- Notary Fees: This is least significant compared to other fees. It is just for a clear verification of the property documents with proper execution of the transaction.
These are the costs which you must carry as a seller. Spend your time with these costs before going for a huge transaction. Agree with the proper settlement of the property in which you should make some modifications, renovations, etc. Make sure that you are making such a profit that you can make up these costs.
For more information regarding property-related concerns, you must read different types of blogs with different use cases and scenarios. Your case may be unique but these notes would be helpful for you in the future in property selling.