Every resource that we put out on our site is dedicated to educating our customers about the intricate field of Real estate. While many of our blogs and other articles online are focused on the how, when, where, and what of buying a home, a home buyer’s journey doesn’t necessarily end there. Some of you are looking at it from a pure investment standpoint and could flip the house you bought and put it back on the market. Some of you might have to move to a different city and would like to sell your luxury apartment in Chennai. Of course, selling the house means a sizable sum is coming your way, but there are also expenses involved that you need to be prepared for.
Here we’ll outline the basic expenses that you could incur.
Foreclosure charges:
If you are still paying the home loan on the home, then obviously, you would be foreclosing it when selling the place. There are foreclosure charges associated with closing the home loan early. Each bank has different regulations for it, and you should check ahead with your banker.
Tax on the profits:
Even though it is technically your property that you have fully paid for, you still need to pay taxes on the profits made from the sale. If you are selling the home within 3 years of buying it, you need to pay Short-term capital gains. The profit will be considered part of that year’s income and taxed on the Income-tax slab rate.
Property that is sold after 3 years is subject to Long-term capital gains, in which the tax is levied at a flat 20% Plus surcharge and Cess, after adjusting for inflation.
Documentation costs:
Selling a property entails similar documentation to when you bought the home. There is stamp duty, registration, and a few other documents to sort out. This cost is usually split between the buyer and seller, but it is still an expense that could definitely lighten your pocket.
Agent Commission:
A seller on their own might not have much luck in getting qualified buyers interested in their property. In such cases, an agent is brought into the picture. The agent/broker connects potential buyers with sellers for a percentage commission. There are agents who deal exclusively in luxury apartments in Chennai, or even as specific as Apartments in T Nagar. Going through them considerably reduces the time taken to sell the house. Even if you don’t want to hand it to an individual agent, any website or firm in which you want to list your property will still charge a commission from the sale.
These are the general costs involved during the process and after you sell the property. But there are costs involved before you put the house for sale.
The Cosmetic Cost:
Unless you are selling a practically new house, there would be definite signs of wear and tear and even possible damage. You need to stage the home and present it at its best to attract more buyers. The most vital cosmetic upgrade would be to give the house a paint job, preferably in neutral tones like soft white, beige, etc. This gives it a clean, bright and spacious look. You could even leave it with a single coat if the buyer wants to go for a different coloured theme which they can do after they buy the home.
When getting the house cleaned, people tend to forget the glass shutters, window glass, and grills. Give them all a good wipe down to keep them spotless. Clean window panes let in light better and give the home a fresh look.
Then there is the question of repairing the damage. Some of the door and window fixtures might need to be replaced, along with some upgrades to the plumbing. You can also consider replacing some of the sinks and closets if they are too stained.
A luxury apartment in Chennai will always sell better when it has been maintained well. Staging the house for potential buyers and for taking professional pictures for the listing also come at a cost.
If you are investing in a property that you intend to sell, then Lifestyle Housing has the best options in the luxury range. We have 4 BHK apartments in Chennai in prestigious residential locations that will fetch a good resale value.
