Pakistan’s real estate is witnessing a boom for the last few years. Since 2009, property prices are going higher as we speak. In some areas of Karachi, prices of real estate have unexpectedly doubled. And why shouldn’t they? After all, Karachi is the financial engine of Pakistan. Many investors, builders, and home buyers tend to grab a piece of real estate. Everyone is interested in real estate but most of them do not know where to invest, and how to get the most of it. Well, don’t worry!
You came to the right place this time! We have arranged some of the basic steps and tips you can follow in order to get the best deal. Considering these tips will also help you avoid fraud and mis-commitment as there are always those people who are ready to give you heartache in this field.
1. Don’t Trust Agents
You don’t need to believe in everything that a real estate agent is telling you. He has only one motive and that is to sell the real estate inventory he has. You can do your research independently. When it comes to real estate Homeland Enterprises is the top tier real estate service provider. We have, and you should always consider them. There are other sites like olx.com and lamudi.pk which are also good.
All the above-mentioned websites will give you an idea of the market at home so you do not have to go anywhere. However, the entire real estate inventory on these websites has been listed with a greater value than the actual value. Do a market survey just in case.
2. Do a Market Survey to Find the Actual Value of a Plot or a House
Finding the right property is not a big deal. There are a lot of properties that will catch your eye. Imagine you have found the property you have been searching for, Great! Now you need to find its market value.
You don’t need an MBA to do it. You can search the market; go to different real estate’s to find the market value of a particular property.
The people familiar with real estate will advise you what we are already telling you.
Here is the formula to use an agent to work for you in finding the real value of a property.
- Call Agent A who listed a plot for sale and asks about its final price. He will tell you the amount.
- Now call agent B who is dealing in the same location. Tell him that you have a plot and you are willing to sell it. There are chances that he will quote a different price than what you heard from agent A. Call this price Y.
- Math time: M = (X+Y)/2
You now have your estimated market value M.
3. Go to Other Agents for Details
This point is tricky and does not have an explanation. We can explain it in this way that one person might not give you the right answer. You need to talk to multiple real estate agents in order to get market insight. You need to pick an agent who is quoting the same price as your estimated market value.
Here the catch! Do not get impressed by real estate offices. They might be having luxurious offices, educated people working under them.
4. Meet the Owner And Negotiate the price
Ask the agent through which you are buying a property to arrange a meeting with the proprietor. Do not try to make a deal with the agent. In the meeting, you can check the allotment of the property with the transfer letter and also acquire the NIC of the person you are meeting. Many fraud agents will try to make excuses that the owner is not in town. Just don’t buy what he is selling. Let the owner come or walk away from the deal.
5. Don’t Pay the Entire Amount at Once, Pay he Token First
You made it till here, I am glad they did not drag you with their negotiations. Once the payment terms and conditions are finalized, what you need to do is give the owner a token. This token will get you both bound to the deal and no one can change the negotiations.
Remember to take the receiving of the token you have paid and below is a list of things you need to keep in check.
- Keep your token money minimum. Pay the owner 50k or 1 lac.
- Take a copy of the transfer letter for cross-checking.
- On the token, the details of the plot or house must be mentioned.
- The token must entail that the property does not have any remaining payment or unclear dues.
- The token money should be counted in the price you will pay of the house.
6. Ask Someone to Verify Allotment or Transfer letter
Well! The agent did get you the best deal in the market at the right price and he wants his commission now. Therefore, do pay him his reward. But before that, tell him to verify the allotment and transfer letter. Play safe! If the agent is new and you don’t know him to go with him to the society’s office and cross-check the status of the property you are buying.
7. Pay through Bank Cheque or Pay Orders
Try to avoid paying the owner or agent in cash. Use services that the bank offers to transfer money and paying through pay orders. We are about to tell you some of the tips that you need to remember when paying for your property:
Every society has a difference in tax values. This is a pretty big topic and needs a blog of its own. Surely, we will discuss it later.
Ask how much money you have to pay to your agent. It should be one percent of the total.
Follow the steps we just told you and we are sure that you won’t get scammed. If you have any other ways to play safe, do let us know in the comment section below.