There is no doubt that real estate is a money-making proposition. However, oftentimes the property sellers ignore the extra costs associated with selling a property. These hidden costs are important because they often have an effect on the amount of profit that a home seller makes on the overall sale of the property.
That said, in case a home seller takes all these costs into account while setting up a budget for the sale of property, things can be planned efficiently so that unnecessary large amounts are not spent on moving and marketing.
If you ensure to consult a reputable and credible real estate agent in the Tricity, he or she will introduce all the hidden costs for you. They will make sure that you have a clear picture of what you are letting yourself in for.
In this blog, we will offer a breakdown of some extra costs that you can incur while selling a property. You can take a note of them, plan ahead for all these costs, and shop timely for getting the best possible price, but you will be able to make a good sum of money on the sale of property with the assistance of a real estate agent who understands the process of selling at the right price.
1)Utility Cost: One of the most important details that many sellers overlook, particularly while purchasing a home is the simple need for utilities at their old house. Almost no potential buyer is ever going to appreciate the process of walking into a home they might buy while having no ability to turn on the lights for seeing the details better.
A new property might not be impressed if they cannot feel or for that matter, hear the air conditioning or heat working properly. The temperature inside may be miserable which might make a property buyer wonder whether or not the items work or if there is a need to put in more money to purchase more before moving into the apartment.
2)Transaction Cost: Regardless of the fact is you are buying a new property or selling an older one, the overall cost is normally more. Many times, the opposite party also insists that you have to pay for the transaction cost.
If you sell your property by taking the assistance of a real estate agent in Zirakpur then he/she will make you aware of the costs involved such as appraisal fee, realty valuator’s fee, stamp duty, etc.
3)GST Cost: Any kind of under-construction property that is purchased in India is charged with the Goods and Service Tax. Similar to the stamp duty and registration charges, GST is also paid to the state government.
In essence, the GST rate on an under-construction property is over 5% but the cost-effective housing attracts no more than 1%. There is no GST on the ready-to-move properties or on all the projects that have completion certificates.
4)Parking Charges: The parking charges count as an important consideration while counting the hidden costs in selling a property. Parking space is an important amenity that is mentioned in many real estate advertisements that are seen commonly.
Even though parking is often a much-needed facility, the space for parking comes at a cost. Hence, a very wise thing to do is to keep the parking cost in consideration at the time of buying a property. The total price of parking is linked to the price of the property purchased. One must take the parking charges into consideration at the time of taking a final call.
5)Property Maintenance Charges: The maintenance cost is the total amount that is supposed to pay for the maintenance of a building and its facilities. However, with the new buildings, many developers ask for maintenance deposits from over two to ten years.
One of the most common benefits of this is that the builders get sufficient capital that they can reinvest in the property construction. Any experienced real estate agent in Mohali will let you know about the property maintenance cost before selling.
6)Registration Fee: This fee is actually non-negotiable. It is mandatory to be paid to the government every time one makes a property to his/her name. The stamp duty and registration charge differ state-wise.
Commonly, this charge might vary from 5 to 7% of the overall property value. In addition, the stamp duty costs around 1 to 2% of the overall property charges.
7)Cost of Interiors: The overall interior decoration costs add an important cost to a property. This is actually more like a home-ridden cost that can end up changing the overall property cost. Interiors are one of the most important attractions in any property.
When the property is not so well managed, the value can be a little lesser, whereas the total cost including the interiors is high. Just like this, the fully furnished rooms also cost much higher as compared to the regularly done flats.
8)Location Charges: The preferential location or the locality charges are basically extra charges that are needed to book a unit that is in a better location in a layout or a complex. This differs from one builder to another, but more so than not, the premium projects tend to have higher preferential location charges.
For example, in case a person wants to buy a penthouse on the top of buildings or have a villa, then the location charges can be high. However, it must be noted that as opposed to the stamp duty or registration charges, this is a cost that is not fixed and differs from one builder to another.
When you are selling a property, it is very important to remember all the costs mentioned above in your account. These are some of the charges that cannot really be avoided. Hence, keeping them in your mind can enable you to make the right decisions while arriving at the right estimated costs most of the time.