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Why do Properties sell for Less Than Their Worth?

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PGN Property Management PGN Property Management, Real Estate & Documentation Consultant with 21+ years of experience verified
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:

  1. Structural issues
  2. Pollution
  3. Family conflict
  4. Financial distress
  5. Relocation
  6. 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…

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