How to Sell Property in Pakistan? Selling Steps and Tips
Selling a property usually seems easier than it is. Regarding how to sell property in Pakistan, the feat has its steps but is rather less complex than buying one. Property sellers do not have to pay taxes or visit multiple clients. After all, it is usually the interested parties who seek them out.
Best Way to Sell Property in Pakistan
The selling process of a property is the same across all the housing societies, with only minor prerequisites implemented by individual developers. The primary question most people ask is how to transfer property ownership in Pakistan. The transfer takes place in the office of the city’s land development authority, whilst for private and registered developers, it takes place in their office.
There are a few things to remember when selling property in Pakistan. Let us explore them individually.
Selling Property Through Agents
Among the most common means of selling property is hiring a professional agent for a decided commission on the house or property you are interested in selling.
Agent, in return, shows property to different interested buyers and sells the house to the best-suited buyers. Buyers or sellers must avoid costly mistakes and make informed decisions throughout the selling process.
Looking for the best and most highly professional real estate agents in Pakistan? We suggest you get a hold of the real estate gurus from Legend Properties, who can help you sell your property safely and securely, leaving no stone unturned
Selling Property Through Auctions
An auction is a private sale held at a specific time, place, and date, asking buyers to come and bid accordingly. It is the best choice if you want to sell your property urgently. Take note that the auction has no ceiling price, allowing you to make whatever offer you want.
Selling Property Online
The less common and rapidly developing property selling mode in Pakistan is online. Many sites and mobile applications allow the seller to list their property online and get responses from buyers.
Steps for How to Sell Property in Pakistan
You must be fully prepared and well-informed for the whole property selling process to work smoothly. For this, follow the steps below:
Preliminary Research and Hiring an Agent
When you decide to list your property for sale on the market, you should survey for the best price instead of depending on the agent. Knowing your property’s worth will help you set the right price and benefit both buyer and seller.
When you decide to sell a property, do a valuation and countercheck to get an accurate market value. After getting a proper market and overall survey, find a reputable agent to strike a profitable deal.
Determine Your Finances
When selling your property, determine the finances you are willing to spend on, including taxes, agent fees, and other expenses that will come along with selling the property. It will include the agent commission, token money, and some small expenses for the legal framework.
Filing Tax Returns
Following the NTN receipt, the next step is to file tax returns regularly with the FBR declaring your income and any due taxes. The tax filing deadline usually ends in June of every year and can be submitted online or in person.
Prepare Your Home
Before inviting the buyers to the house, ensure it is presentable, especially ensuring there are no apparent loopholes or major flaws. Make repairs for some major prevalent flaws, like pipe leakages, as much as possible. Otherwise, you can state that whilst presenting your house. A polished and repaired house will get you better rates than faulty ones.
When selling your house or property, you have to go through the legal framework, ensuring all security and transparency in the property selling process. This legal framework requires some documents to work on, which include:
- Both parties’ photos (buyer and seller)
- National identity card copies of the concerned parties
- Original title deed of seller
- Sale deed of the property signed by buyer and seller
- Record of right (Fard), obtained from property registrar’s office, ensuring property belonging to the seller
- Non-Demand Certificate (NDC) for showcasing no dues are owed for the property.
Make an Offer
Once you get offers from the buyers, meet with them to discuss their budget, your offers, and most especially on how they clear payment to you. Do not forget to show them around the property. Describe the pros of the property and locality, along with the amenities it offers.
It is the trickiest part of the whole process. Exchange information with the buyers to negotiate the price for your property by telling them the advantages and amenities of the vicinity.
As a property seller, you should know the property taxes you must pay. In Pakistan, sellers must pay the CGT (Capital Gains Tax), which is 1% for the tax filer and 2% for the non-filer. CGT applies to properties sold within two years of their purchase date.
Whereas buyers have to pay the following before the property can be handover to them:
- Transfer Fee
- Stamp Duty
- Capital Value Tax (CVT)
- TMA Tax
It is the deal-sealing money given to the seller to express legitimacy in buying. In Pakistan, token money is mixed with Bayana, which is more formal as it comes with written agreements.
After settling everything, you transfer the property to the buyer’s name. This may take some days but will be done when everything is settled on both parties’ end.
Frequently Asked Questions
Token and Bayana are the crucial steps in buying or selling a property in Pakistan.
Yes, a tax for sellers is called Capital Value Tax and is imposed on the sale or transfer of immovable properties in Pakistan.
Stamp duty applies to buyers interested in buying property in Pakistan along with taxes and other applicable fees.
This article explains the different ways to sell property in Pakistan, along with the necessary steps. You can follow our guide for selling property in Pakistan with ease and without facing any added challenges.