Broadly, you should review the below and we can speak.
Before you start looking for a buyer for your property, which you are looking to sell, you must understand the market dynamics.
Key Points to understand immediately before you sell a Property in Mumbai!!
- Was there any last flat/office sold in your Building.
- What was the price of the last flat sold and when was it sold?
- Was it the same layout or the finishing’s or furnishings as good as your flat
- What are the location rates going on?
- If there is an under construction building around your location, then what are the prices there currently
- What is the kind of demand and supply in your micro market where you are based?
- Are there a lot of Empty flats in your building?
- If you have an expected price set up in your mind based on your own calculations etc. is that some thing which is achievable.
- Do you have any kind of an urgent need to exit, like buying a property somewhere else or leaving the city etc.?
Tips for best results in selling a Property in Mumbai:
- Please weigh in the above factors before you decide on the price.
- Do take help from your local or best real estate advisors/consultants/agents in your area in Mumbai.
Capital gains for selling a Property in Mumbai.
Another important aspect of property selling is the Computation of Capital Gains, which you must know before you Sell your Property in Mumbai.
There are 2 Types of Capital Gains:
- Long Term Capital Gain also known as LTCG
- Short Term Capital Gain also known as STCG
Long Term Capital Gains on real estate is applicable on properties held for a minimum period of 3 years; in the last union budget of 2017 the same has been reduced to 2 years, however there are certain provisions in the act for older properties, which shall be computed for 3 years.
Once you determine, that either you are in the short term or long term you need to calculate your tax liability. In short-term capital gains the same is equivalent to the tax slab as applicable for your current income.
On Long Term Capital Gains, if you have held the property for more than 3 years, then you are eligible for a long term capital gain at the Rate of 20%, and then you get Inflation Index benefit.
Your Chartered Accountant, will be able to help you do the calculations very well and explain you the tax liability.
In case you are reinvesting and buying another property, then there is no tax liability, if the property is ready possession or under construction and will be ready with in 3 years of the sale of the current property.
Capital Gains computation is the most important aspect of Selling a Property in Mumbai so please do not take this lightly. After property valuation, this is the most important thing to understand.
Original Property Papers
Any buyer before giving you an earnest money to buy your home in Mumbai, will ask for the copies of the property papers and typically they would also like to know if your property is mortgaged or do you have a home loan on the same.
A few important documents required for selling a flat in Mumbai
- Agreement for Sale/Sale Deed (Original Developer Agreement along with the Chain Agreements in case you had purchased the property in Mumbai in resale.
- Share Certificate with your names endorsed
- Last Paid Society Bill
- Last Paid Electricity Bill
- Last Paid Telephone Bill
- Last Paid Property Tax Bill
- Pan Card
- Aadhaar Card (Optional)
In Mumbai most of the properties either are in Buildings or Societies of Bunglows etc so understanding the paper work is relatively easier compared to that of a land.
One of the most important factor in the Sale process is the documentation correspondingly with the Housing Society or the Condominium or the Association of People as the case may be.
Most of the Housing Societies in Mumbai will charge a Transfer Fee and they would like to understand the profile of the Buyer/Purchaser and then issue a No Objection Certificate and they would request compliance of the documentation required under the societies act.