Selling Your Property? 7 Hidden Costs That Will Come Your Way
We all are familiar with the hidden costs involved when buying a property. But, did you know there are hidden costs when selling a home, too?
MakaanIQ lists seven hidden costs a seller must be aware of:
Are you still paying the home loan for the property you plan to sell? Now, if you plan to pre-repay your loan before starting the sale process, your bank will ask you to pay foreclosure charges for prepaying the loan.
If you sell a property in India, you will have to pay tax on the profits made. If you have sold the property within three years of purchasing it, you will have to pay short-term capital gains tax (STCG). In such a scenario, the profits made will be combined with the income and will be taxed on the Income Tax slab rate.
But, if you have possessed the property for more than three years, you have to pay long-term capital gains tax (LTCG). In such a scenario, the tax is levied at 20 per cent (plus surcharge and cess) after adjusting the gains for inflation.
When selling a property, it is imperative to hire an agent. He would help you fetch a good price for your property and a credible home buyer. He would also help you in the home-selling process, including showing around the property to potential home buyer, completing the paperwork, negotiations, etc. So, be prepared to shell out some money you would be paying to agent as his fees.
When you sell a property, you pay transactional costs, which are similar to the cost you incurred while buying the property. This would include stamp duty and property registration charges. These costs are generally divided between the buyer and the seller.
Staging and repair costs
When potential home buyers pay a visit, you would want to flaunt a fully functional and good looking piece of work. This would mean you will have to spend some additional money in getting your dull house look better by applying a fresh coat of paint, etc.
Cleaning up the property for the potential buyers to see the property as it actually is is important. And when de-cluttering a property which has been occupied for years, you will see things that you didn't know were there on your property and you don't need them anymore. So much mess, you might even require hiring a dumpster or a small carriage to dump it.
You have lived on the property for years and now is the time to pack and make a move. You will have to hire a team of packers and movers to help you do this task. This cost of moving from this property to a new one.