Sneha Sharon Mammen

“My house was slightly bigger, perhaps 200 sq ft more space than Prakash’s and yet he managed to make an extra Rs 5.5 lakh. Howwww!!”

Ever wondered why two houses, sometimes in the same locality, move in the market at different prices? You may even be willing to pay differently. Consider buying a Tee. You would be ready to buy a higher priced black tee from downtown but you would expect a flea shop to sell you the same commodity dirt cheap. Real estate can play mind games too! Know how-

Create your own brand

Whether selling or renting, the mantra is how well you package your product. Nobody likes a shoddy, capsized wreck for a home. Make sure your house looks inviting. Houses convey the personality of people who reside in them. When it comes to lifestyle or real estate, aspirations are always at play. So, when you pitch, make sure you are pitching a lifestyle.

Maintenance

Just like your daily life, a certain discipline and decorum works well for a house too. A clean, painted house that has no leaking roofs or termite ridden cupboards or blotchy exteriors will see willing takers, whether on rent or sale. Consider yourself in the prospective tenant/buyer’s position and try to gauge, would you be willing to buy what you are selling? If the answer is no, work on it till you can say a yes. Of course, it means a little more spending.

Here’s a tip from Ajay Sharma, DGM, Valuations and Consulting, HDFC Realty – The seller knows the average value of a property and would be willing to spend -/+ 5 per cent of the market price. Suppose, the price of your property is Rs 100 and a buyer would have to incur an expenditure of Rs 12 to repair/renovate the house, then ideally the seller should be selling the house for Rs 88. If you still feel you should ask for Rs 100, that is the total cost of the property, you should be willing to undertake all the repair work before passing it on to the buyer.

Be open to research

Buyers and sellers in the market are equally competitive. All buyers want to boast a budget buy while all sellers would want to brag a profit. However, you need to price your property appropriately to prevent a prospective tenant/buyer from opting for the next best at a value-for-money rate. For this, do a careful research – What are the going rates in my locality? What are the kind of amenities provided by the seller/landlord at that price? Is there a possibility of sizeable price appreciation in the near future?

You can find answers to most of these if you rely on formal indices. Leading real estate consultancies and portals carry timely research. This way it is easier to find how a locality has been faring in the past. If you see buyers rushing to a particular locality, something might be appealing. It may either be the well managed civic infrastructure or clear, smooth transport or job hubs in the vicinity. Such places will command a premium.

Is the time appropriate?

When is the right time to buy/sell? If your research is headed in the right direction, you would know. When the sales are low, it is a better time to buy because that is when developers would be willing to settle for a little less. On the contrary, this may not be a good time for sellers. Probably, this is when they should wait till the market is open to giving them their worth.

Market!

Ever wondered why companies invest in marketing departments? Your house needs some kind of marketing too! Reach out to brokers or post your property online. The internet has pervaded into almost 30 per cent of the population today, finds research. This is the population you would be targeting. Find out new ways to reach out to them.

Now you know the reason why your neighbour has been earning better through real estate, probably he has taken care of all the above!