Selling a home property may sound easy on paper, but it is a long process. You must prepare the documents, processing fees, and waiting times to sell the property. It is important to comply with the steps, as any missing information delays the transaction. If you have a person who wants to buy your property, ensure they will also comply. Noncompliance with the developer’s request makes it more difficult to sell the property.
One key aspect of the transaction is communication. Listen to the developer’s requirements and give the needed information. The same goes for the one buying the property. You should not let your emotions overwhelm you, as this is a business transaction between you, the developer, and the buyer. Now the question is, should you sell the home property?
What To Consider Before Selling Your Property
Real estate is one of the most valuable markets today. Even when things change over time, the value always rises. Any residential lot in Trece will see its property value going up yearly. And if you plan to sell your property, it should follow the current market value. Once sold, it is as good as done.
Before selling the property, you must provide a good reason to the developer. They need to know why you are selling the property so they can inform their agents. It gives them time to process your request, making the transaction smooth.
Here are the important factors before selling your property.
- Current property value – As a homeowner, you may know the property value. However, the real estate market is ever-changing. Therefore, you must know the updated pricing on the property. It allows you to provide an attainable price within the current market. Timing is key, and prices can go down despite the upward trend. Ensure that you price your property within the buyer’s capacity.
- Taxes – All sold properties are subject to tax. Homeowners must pay taxes as part of the process. You must remember two taxes in the Philippines: Capital Gains Tax and Real Estate Taxes. The Capital Gains Tax has a set percentage of 6% of the selling price. For Real Estate Taxes, these are the taxes the homeowner pays before selling the property.
- Real estate agent’s commission – The commission will vary depending on the value set by the agent. They will be responsible for the processing, paperwork, and communication with the developer. Once the property is finally sold, you pay the agent’s commission. Ensure to include this as part of the expenses during the transaction.
- Financial payments – You still need to shell out some cash in preparation for selling the property. It is unavoidable, and you need to shoulder these expenses. Ensure that you are financially prepared for the long process. While the market is stable for most investors, one wrong move results in more losses. Be careful of the payments you make, as this has lasting consequences.
Wrapping Up
Selling a home property is an important decision you should think about. You estimate the property value based on the current market trends. If your decision is final, prepare the paperwork, finances, tax payments, and communication channels. Remember, selling is as long as investing in a property. Ultimately, it is your responsibility to ensure a safe and smooth transaction.
