The Agents Real Estate Guide for Karachi
In Real Estate Guide for Karachi, Karachi’s real estate sector provides services to nearly 20 million individuals. From dozens of residential properties to thousands of squatter colonies, the size and complexity of this city captivate everyone. Property values are rising in practically every popular neighborhood.
In the latest days, the city has seen the development of multiple real estate developments in various parts of Karachi, especially in the outskirts, causing its real estate industry to expand on an unprecedented scale. These quickly developing property projects provide people with numerous residential and commercial plots, resulting in new real estate investment options.
What Should You Know About Property Investment in Karachi?
Purchasing a home or property in Karachi can be an exciting experience for people. But, being a landlord in Karachi is not as simple as it sounds. First and foremost, you must conduct a property price survey to determine which types of property in Karachi are in high demand and expanding in value.
Karachi is a sprawling metropolis with numerous districts and localities. As a result, considering property investment in Karachi is akin to capturing a small fish in a vast ocean. Simply put the search query ‘Property for Sale in Karachi‘ yields hundreds of responses with varying price tags.
Projects offered solely through the internet or Text, with no authorization from a trustworthy agency, should be viewed with caution. So, if you cannot validate their legitimacy or any other information they offer, it is best not to deposit any money in such a case. It is one of the most significant real estate investment ideas that Karachi property investors should follow.
If you search for a business or a domestic property, having close facilities and a protected place can only increase the property’s value. When looking for a particular house for sale in Karachi, you must consider all of these things. Under development, housing projects inside the city have higher profit possibilities than fully built societies in Karachi’s outskirts.
The Fundamentals of Property Investing in Pakistan:
It will help if you are mindful that there is no one-size-fits-all approach to defining real estate investment adequately. Yet, we may say that selling, buying, or leasing property for the sake of capital gains is essentially a property investment. Here are some property investments that are most useful in Pakistan’s real estate market:
Buying and Reselling Plots:
Buying plots at cheaper costs to sell them at increased prices is among Pakistan’s most prevalent real estate investing techniques. In this business, investors buy lands and retain them till their prices rise. This rise is subject to the passage of time and the progress of the project in question.
Buying a Property to Rent Out:
Whether it’s a flat, a house, or a business building, buying and renting out a place is a profit real estate investment. Now, all you can do is sit back and enjoy a steady monthly income while your property worth rises day by day.
Attempting to Sell Your Property:
It is the phase at which you begin to see a return on your investment. When you believe your property has reached its maximum value potential, it is time to sell it. If your desire is to get the most out of your investment, bear in mind the listed considerations.
- Make use of a variety of resources
- Analyze the value of your item
- Analyze the value of your item
- Reconfirm allotment
- Cash transactions must be rescinded
Yes, after you’ve looked over all of the suggestions mentioned earlier, you should do this. If it meets your requirements and budget, purchasing a plot in Karachi can be a fascinating experience. Before closing on a contract, as an investor, double-check everything regarding the property you’re interested in.
Stay tuned to Feeta Blog to learn more about Property investment in Pakistan.
Tips to Get the Best Deal on Your Property
To get the best deal on your property when it comes to buying or selling a property, you need to avoid some common mistakes. Selling a property, in particular, is a more complex process. From preparing the house for selling to finding a suitable buyer, the process takes a lot of time to secure the deal.
A property is probably the most expensive asset an individual owns, so selling comes with an element of caution. Most property owners sell their property because they need immediate finances to manage expenses or invest in some other project.
While visiting a property on sale, most buyers generally offer less money than your property’s actual worth. Moreover, they will criticize several elements such as home design, closet positioning, and color choices. It can be emotionally challenging as a place is more than walls and roofs for the owners.
With no experience and knowledge, property owners face heavy losses while selling a property. However, a little know-how about the process can help secure the best deal with the highest possible rates in a reasonable time frame.
Feeta.pk, Pakistan’s smartest property portal, brings you essential tips to get the best deal on your property.
Tips to Get the Best Deal on Your Property
The following are some essential tips that property owners can follow to get the best deal on their property:
- Prepare your home for selling
- Improve your home’s exterior
- Make the repairs
- Be patient while selling your property
- Do the Comparative Market Analysis (CMA)
- Choose a realtor carefully
- Setup a realistic price
Prepare Your Home for Selling
Before buying a property, the buyer imagines himself living inside it. If everything is properly arranged and decluttered, buyers can put in a good offer.
The following are certain measures that you can opt to prepare your property for sale:
- Thoroughly clean every part of your property
- Get rid of the clutter
- Depersonalize by removing family photos
- Rearrange all the furniture
- Move all the bulky items to storage
Apart from these measures, you can hire property stagers. They will showcase your best assets in order to impress the buyers. Stagers help property owners in selling their properties in a reasonable time frame.
Improving the Property’s Exterior
The exterior of a property is the first impression potential buyers have of your place. Hence, if you want to sell quickly, make sure your property’s exterior is attractive. For that reason, you should consider taking the following measures:
- Clean your house’s surroundings
- Consider minor repairs and maintenance of exterior elements
- Wash the windows
- Repaint some parts of your home, if needed
- Replace your door handles, if required
- Clean the pathway from the curb to the porch
- Prune the outgrown bushes and straighten up uneven paths
- Dust away debris and spiderwebs from windows
Taking these measures will make your home appealing to visitors and leave a positive impression.
Make the repairs
Minor repairs can greatly impact your property’s selling price. If you do not have enough time to do full renovations, you can focus on quick repairs. A complete survey of the house will point out all the areas that need quick fixing, such as:
- Loose tiles in bathroom and kitchen
- Loose hinges on doors and cabinets
- Stuck drawers and cabinets
- Leaky faucets
- Stains on carpets
If you have enough budget and time, you can add new hardware as well to make your home more attractive.
Be Patient While Selling Your Property
Most people want to sell their property as soon as possible because they think selling property is a piece of cake. However, it is completely the opposite. If you want to sell your property quickly, you probably need to rethink your strategy because a hasty decision will result in big losses.
If you do not analyze market prices and dynamics, real estate agents and buyers will benefit from the situation. The real estate market keeps fluctuating and you should wait for the right time to make your decision instead of rushing the process.
Even if you have spent money on quick repairs or renovation, this may backfire if you haven’t taken the current market conditions into account.
Do the Comparative Market Analysis (CMA)
In the real estate business, a comparative market analysis is essential. If you are unaware of the market factors and dynamics, your investment might crash. Your asset is the most valuable thing that you have and, for that, you need to be mindful.
CMA report will provide you with the following essential elements:
- Addresses of all the comparable properties in the area
- Description of all the properties including floor plan, facilities, and amenities
- The sales price of each property
- Prices of recently sold properties
- The fair market value of properties
- Neighborhood Details
Apart from these factors, the CMA report gives you a realistic estimate of your property’s price. So, comparative market analysis saves you from fraud and losses and you can get the best deal on your property.
Choose Your Realtor Carefully
Being new to the real estate market, you might not be able to understand the complex process of property selling. In such cases, you should hire a real estate agent after proper research. Although real estate agents usually charge 2-4% of the final cost, they help in securing a good deal.
A good real estate agent will keep your interests at the core of his business. He can present your property in much better ways to potential buyers. The following are the main responsibilities of a real estate agent:
- Facilitate meetings with potential buyers
- Carry out CMA and set the property’s price
- Prepare listings preparations for clients
- Take photographs of the property to present it on digital platforms
- Market your property
- Make property repair suggestions
- Stage home for a better impression in front of clients
- Process documentation, agreements, and records
- Coordinate meetings and appointments
- Secure the best deal
Set Up a Realistic Price
Setting a realistic price for your property is very crucial. While listing your property for sale, you should consider a comparative market analysis. It will help you decide the right price for your property. Just like all sellers, buyers and their real estate agents also conduct comparative market analysis so they have an idea about property prices in a particular area.
If you have set a high price for your property, chances are it will remain unsold. Similarly, setting lower prices will result in losses. Therefore, a balanced strategy is helpful in this regard.
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The Ultimate Guide to Selling Property in Pakistan
Selling and Transferring Property in Pakistan is a regular occurrence in the country, where hundreds and thousands of people sell and transfer property. For those familiar with the process, the transferring procedure might just be a piece of cake. But for people who are new and confused about where to start, you’ve come to the right place.
Before we jump into the tricky aspect of this process, let’s clear the air about what exactly transferring property means and why it is an essential aspect of buying and selling property in Pakistan.
What do we mean by transferring property?
As per the law, any individual who owns a property should have the land or property verified under their name. The land should be under the designated ownership; only then can they sell the property to themselves. This is the basic requirement of selling a property.
In Pakistan, the transfer of any property generally consists of the owner transferring the title of the land from one person to the other. Transferring property can occur in multiple ways for various reasons, such as a mortgage, gift deed, inheritance, lease, exchange, etc. All such explanations are why transferring is an essential legal procedure.
Who is eligible to transfer property?
All individuals who can sign a contract are authorized to transfer property ownership in Pakistan. According to the Contract Act 1872, a contract is claimed as a binding agreement between two parties, meaning that it is a legally binding document for any sale and purchase of land in the country.
There are a few exceptions for people who are not eligible to transfer a property:
- Minor: Anyone under the age of 18 is a minor and therefore cannot carry out the process.
- Unstable Individuals: Someone who cannot understand the consequences of their actions, for instance, that of a mentally ill person. Other reasons can be permanent or temporary physical disability such as a Coma etc.
- Legally Barred Individuals: Someone barred from signing contracts cannot transfer property in Pakistan.
What are the steps involved in transferring and Selling a property in Pakistan?
The transferring process, although time-taking, is a simple and easy process with not many legal proceedings. We’ll break down the process into different steps to help you better understand.
This is the very first step of selling after you’ve successfully secured a client. This involves the buyer giving approximately 1 / 4th of the total price. If not the exact percentage, there is an agreed amount between the buyer and the seller to indicate an agreement from both sides of the party.
The Token (Bayaana) is given by the buyer with a series of negotiations and based on a contract, in which all details are specified. After this, the seller holds negotiations with any other potential buyers.
Usually, a specified period is set and written in the contract for the full amount to be paid. If the sale falls through, the token is returned. But if the full amount is not paid in the specified time, the seller has no obligation to return the token, even if the sale doesn’t go through.
What is a Property Sale Agreement and how can we get it?
A sale agreement contract is a set of required documents that include all information related to the seller and buyer involved in the transfer process. In Pakistan, these are the required documents that are attached with the Bayaana form:
- Complete details of the property with the property owner’s verified name
- Terms of sale for the property
- The total amount of money which the property is being sold for
- Final date for the buyer to pay the remaining sum of money
What is the complete list of documents required?
To carry out the transfer process smoothly, you need to collect the following documents organized. You’ll need:
- Recent Passport Photos of both parties involved (Buyer and Seller)
- Photocopies of National Identity Cards of both parties
- Original Purchase Deed of the Seller (From the time they purchased the property)
- The original ‘Sale deed’ which is the agreement contract between both parties
This list of documents can also include some more documents depending on the province, region, area, etc. (A lot of documents, we know, but verified property takes tough measures!)
- A ‘Record of Rights’ also known as Fard-e-Malkiat, is a form that can be obtained by the seller from the property registration office. This guarantees that the property is under the name of the seller.
- You’ll need a Non-Demand Certificate (NDC), a document that shows you don’t have any fine due on the property. Depending on the location, you can get this from the local development authority’s office.
- For properties in private housing schemes, there is the need to request a letter from a particular society to carry out the property transfer. This can be used in place of the Fard-e-Malkiat document.
Possession of Stamp Paper and Tax Payment
This is one of the essential and final steps of the transfer process. You’ll need a stamp paper to draft the deed for the sales; that will be the contract for the sale. You can choose. Buyers; will be required to pay stamp duty and taxes during this step.
Let’s take a look at this easy breakdown of the tax duty involved:
- Stamp Duty 3%
- Capital Value Tax 2%
- District Council Fee 1%
- Fixed Registration Fee PKR500 (Can differ as per govt. Order)
Drafting the Sales Deed
In Pakistan, the sales deed is usually recommended to be drafted by a property lawyer or a property agent aware of the bylaws and the rules involved in the process. This is a particularly safe option to avoid any complications that might arise in case you are doing it yourself.
Although, people who are selling and buying property as a business have become familiar with constructing the ideal draft for this deed, which can be done easily with the help of the internet. However, the common practice and recommendation are to take the help of a lawyer to avoid any future complications that may occur.
What do we do after drafting the Sale Deed?
Finally, after a long process, you’ve reached the last step. You can take the sales deed (inscribed stamp paper) along with the required documents to the registrar’s office. From here, the sub-registrar will call both parties simultaneously and hear their verbal agreement for the trading of property.
You’ll need to sign the documents and put in your fingerprint to verify the final sale and complete the transfer process. Once this is done, the official will register the sale deed successfully, then the transfer process is complete, and the property is now successfully transferred to the buyer.
How much is the Commission for the Property Dealer Involved?
If you’re wondering what the person who helped you secure a client and help you proceed with the sale and transfer of the property is, there is a commission that the dealer/agent gets from the client. Although there are no specific laws to govern and record the work of real estate agents and dealers in Pakistan, the general practice remains a constantly changing variable and experiences changes from time to time.
Usually, the commission of property agents comes to around 1% of the total value of a property. This 1% of the value is each from the buyer and seller as the commission to the dealer. If the buyer and seller both have different agents, then both agents get to keep a 1% commission each from their own clients. Sometimes, property agents will ask for as high as 2% of the property value, or even lower than 1%. The amount varied according to the success, reputation of a property dealer, or property value.
Suppose you’re looking to learn more about the legal aspects and procedures involved in property buying and selling. In that case, you can stay connected with our blogs at Feeta.pk, where you can easily find comprehensive information to guide you through the real estate market.