Points to Keep in Mind Before Selling a Property

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Points to Keep in Mind Before Selling a Property

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Following points should be kept in mind while selling property:

Capital Gains

The department of income tax considers every property owned to be a proper asset. Any profit that a person earns by selling an asset attracts capital gains tax. If the property is held for less than 3 years then it falls under short term capital gains; where the rate charged is higher compared to long term capital gain tax; this long term capital gain is valid after 3 years of ownership. So a person has to keep in mind and calculate the tax according to it.

Duties

While selling property the price charged is usually very high; this is because it includes many duty charges like registration fees, stamp duty, brokerage, and many more duties. Due to this inclusion of extra charges the value of the property rises by a huge amount. The profit earned from the asset depends on the amount of time for which the property has been held; if the period is less then the profit generated will be low and if the period is more then the profit generated will be more. So the seller should keep in mind about setting the price so that all his or her expenses are covered after selling the house.

Wealth Tax

If the property is the second property of the owner then wealth tax will be applied to it. There is a particular percentage that is a charge on the total amount of the property as the wealth tax. If a person owns more amount of wealth in the form of assets then the wealth tax charged on it will also be more. The seller should calculate the approximate of this tax and not doing it can cause a huge amount of loss for him or her.

Prematurely Accepting an Offer for property

The seller should be very patient before accepting any kind of offer from the buyer. It is suggested that the seller should not accept the first offer that he or she receives even though it is a decent offer; the person should wait to receive other offers as well and compare all of them to understand which one is more suitable. As the property is fully exposed in the market so there is a high probability that the seller will receive many good offers; accepting the first offer will eliminate the chance of getting other offers which can be a better one compared to the first offer.

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