From ancient times, Land has been treated as a possession, a piece bought, sold, and transferred for profits. With the rapid growth, it has led to the problem of urban sprawl, ribbon development, and the high cost of the infrastructure.
The increase in connectivity from rural areas to urban areas has led to urban migration. The sole reason is economic opportunities, Lifestyle, Education and medical facilities, etc. With the increase in urban migration, there is a sudden demand for land in the core and periphery of the city.
With scarcity and complexity involved in the overall process of selling and buying land, it takes more than the expected time.
A widely accepted belief is that buying land, unlike buying a house, involves greater risks, and buyers should not sign the deed without a proper background check.
Land mainly comes with two major risks, the problem of maintaining it, and second, its potential depends upon its influencing area.
Procedure to Sell and Buy Land
The procedure to sell a land revolves around two modes:
- Online mode
- Offline mode
1. Online Mode
- Procedure:
The online platform allows users to create their profile, without uploading any confidential or original documents it lets you list the property by simply adding the location, uploading images, and expected price.
The online website offers many options compiled together to the seller, it is always advisable to do a proper study of all the parameters involved, especially the market price. There are many land valuation factors you have to consider for getting the market price.
As technology advances in the future, the traditional method of selling has seen a decline and may vanish in the coming decade.
- Challenges:
The process is hassle-free and there is no third party involved which would have come up with an extra cost, but sometimes the profile gets lost in the options and does not cater to the response it was supposed to be. The other bigger challenge is the scarcity of online platforms to sell land.
Earthfields, one of its kind, offers an innovative AI-based solution for owners and buyers to come together on a single platform without external barriers.
2. Offline Mode
- Procedure:
This method solely depends upon word of mouth. Most of the owners involve a third party for better contacts. For offline buyers especially, it is important to maintain the land, demarcate the land boundaries, and have good communication skills to impress the buyer.
The process involves more visits to the site, and detailed research for current and future interventions, After the buyer decides to buy the lot, paperwork and baking support are crucial things4 and can be a deal-breaker.
- Challenges:
The process may take longer than usual and most importantly authenticity of the buyer is the perturbed part of the process. It is advisable to do a background study for both buyer and seller.
The owner should check the status of your land from the development authority. Irrespective of any mode used, Selling land without demand is non-viable. Reaching the bait to the rat is a challenge faced by many.
Problems Faced in Land Sell and Buy
With any method practiced in today’s time, there are many challenges faced. Some are listed below:
1. Ambitious about time
Sellers always have to take risks about what is coming for them in the future. But sometimes risk may pay off. Upcoming infrastructure and proposals may boost the price of the land and sellers should always know the correct time to sell its asset.
If you are handy to sell it immediately, land involves a lot of money and always seeks for its right buyer which may take longer than usual.
2. Land use
Major chunks of vacant land are in the hands of farmers. With urban areas at their thrust, there are more opportunities for greenfield development. Rural areas, when included in planning boundaries or metropolitan boundaries, are assigned land uses.
For real estate seekers land use is a major concern. Land holding commercial, residential, mixed-use, and Industrial have higher chances of being sold than land going into infrastructure facilities and green areas.
3. Legal issues
A seller/buyer should be aware of all the legality involved in the process and cannot be a layman while doing both. It is always better to involve title deeds for no glitches.
If we don’t address these challenges on time, they can turn out to be roadblocks to successful land transactions.
4. Getting appraisals by the bankers
Not all buyers buy land in cash. It is preferable to always get an appraisal by the bank in the first place. There are many Khasra numbers listed by the developing authority which do not fulfill the mark of getting sponsored. Buyer and seller both should be aware of such complexity.