You have put up your property for sale, and are waiting for offers to come in. Perhaps it is a seller’s market during this time and with regards to your specific neighbourhood, and you have gotten a few offers from buyers. To choose the best offer, it would be advisable to consider a few aspects listed here.
Consider your reason to sell
Your reason to sell can help you figure out the timeframe or how quickly you want to conduct the sale of your property. In case it is a distress sale, speed will be the top priority, and you would want to select a buyer who intends to go through the deal quickly.
Calculate your profit
Spend some time calculating the return you would get from each offer price. Take note of all the costs incurred by you on the property. Then, subtract this from the amount the buyer is offering you to find out your profit. Do this calculation for all the offers you receive to identify the one which gives you the most profit. To learn how to calculate your Return on Investment (ROI), click here.
Set the terms and conditions of payment
Let us suppose you received two offers for your property for which your ask price was Rs 40 lakh. You set this price after considering all costs incurred by you on your property.
Choose the mode of payment
In case the buyer is using his/her savings to finance the property purchase, it would be advisable to consider the mode of payment the buyer plans to use. Payment via a Demand Draft (DD) is much safer since it is issued by the bank only if the account holder has that amount in his/her bank account or provides that amount to the bank to get the DD issued.
In case the buyer is using a cheque - while all may turn out to be well and good - you run the risk of the cheque bouncing if that amount is not present in the buyer’s bank account. It is also advisable to steer clear of post-dated cheques in these cases.
It is also advisable to consult with your broker about a specific buyer. They are also adept in and have the network to get a background check done on the buyer, which is also vital.
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