Why do Properties sell for Less Than Their Worth?
Answered on December 02,2022
Undervalued properties can be found from time to time, in the large majority of cases if the price of a property seems too good to be true, there is generally a reason.
6 Reasons to undervalue property:
- Structural issues
- Pollution
- Family conflict
- Financial distress
- Relocation
- Neighbours
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1. Structural issue:
Structure issues are worst nightmare for occupants. Issues like
- Recurring seepages in rainy and winter seasons,
- Cracks on walls, Wall bulging, uneven floor
- No sunlight in the flat (rooms are dark even at day time)
- Poor foundation, etc...
Such issues cause severe health & safety concerns to occupants.
2. Pollution:
Quality of air, sound, and water has a significant impact on the value of property
An apartment consist of following spots, make sure that flat is not close to any of below spots
- Sewage line
- Garbage dumping spot
- Water recycling plant
- Waste disposal plant
- Close to road
- Close to play area
Such spots cause profound impact on air and sound pollution.
3. Family conflict:
- Divorce - When a couple is separating, the price of the property may not be the priority, Rather couple requires quick sale.
- Separation: When the siblings are separating, they may sell immovable property for quick settlement among sibling
4. Financial Distress:
Owner of the property may be under financial pressure for following reason
- Need of fund for medical emergency
- Investing money in business or new property
- Marriage expense
- Not able to repay mortgage
- No income (jobless). Need money for day-to-day expenses
5. Relocation:
Owner of the property moved and settled permanently in abroad.
They sell property in India to buy property in abroad.
6. Neighbours:
The neighbours could be noisy, noisy pets, bullying in nature or chain smokers which caused second-hand smoking in your flat etc…
Owner of the property wants to move quickly from annoying neighbours
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To safeguard the sale, do the ground and document verification
Ground Verification:
Ground verification helps us to understand the real condition of the property. The ground verification should include the following
- Visit the flat and assess the condition of flat. If possible, inspect the property by profession and get the inspection report
- Inspect the surrounding
- Talk to neighbours or known people in the apartment
- Talk to apartment association member or maintenance head about the sale of property
Document Verification:
Document verification assures that the property involved in the transaction is legal and legitimate. Verify the following documents
- Registered Deed (Sale deed, Partition Deed, Gift Deed, Release Deed etc..)
- Encumbrance Certificate (EC)
- Tax receipt
- Khata
- Seller’s PAN
- No Objection Certificate from Bank (NOC)
- No Objection Certificate from Apartment association (NOC)
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We provide assistance for document verification, our verification includes reports + Sale Agreement including franking + Sale Deed Registration.
To opt for our service, please Whatsapp to + 9 1 - 9 7 4 2 4 7 9 0 2 0.
Thank you for reading…