Overselling

“Overselling is a deceptive and unethical strategy where a property dealer, consultant, or marketing company sells more (plots, apartments, houses or commercial spaces than legally exist. This often happens in newly launched housing societies or under construction commercial projects”. For instance, a housing society has approval for 500 plots but sells files for 800 plots to collect more money from investors.

Drawbacks of Overselling in Real Estate Market

Overselling means making promises about a property that aren’t true, just to convince people to buy. This thing creates a great problem in Real Estate market.

Loss of Trust

Trust is the foundation of any successful business. Once buyer feel cheated, they won’t work again or recommend to others.

Tarnish Market Reputation

In the Real Estate market, reputation is everything negative words spread fast and can severely impact on future business.

Legal Trouble

• False promises can lead law suits or legal action. This means the victim can go to court or involve legal authorities to seek justice. Commonly legal consequences include;
• Fraud claims
• Breach of contract
• Consumer protection violation
•  

Financial Loss

Cancellations, refunds, and wasted time can damage your business financially.

Negative Effects of Overselling on the Real Estate Market

Overselling can negatively impact on business in multiple ways. Overselling damages trust, inflates prices, causes market instability, and reduces growth opportunities. This creates an unrealistic market where properties are priced for beyond their actual worth, making it difficult for genuine buyers to afford homes. As more and more people realize the truth behind these inflated claims, truth in the market begins to decline. This loss of buyer’s confidence results in slower sales and reduced demand Overall, overselling damages trust, weaken investment opportunities, and creates instability in the real estate market.

To control overselling in the Real Estate market requires effect from individual, agents, advisors, and companies. Here are some effective ways to control and prevent this problem.

Be Honest and Clear

Companies should always give true information about the property. No false promises about price, location and the features of property.

Follow Rules and Laws

There should be strict rules from the government and property authorities. Those who misguide buyers should be punished.

Educate Investors

Investors should learn about the market. If they have a knowledge about the real facts and figures no one can easily fool them.

Professional Property Advisors

Real Estate companies should train their staff to work honestly and treat their client honestly.

Buyer Protection Law

This should be strong laws to protect buyers. If someone oversells or cheat buyers, the buyer should be able easily get justice .This accountability will discourage overselling.

 SUGGESTION

To control OVERSELLING in the Real Estate market, it is important to promote honesty and transparency among Buyers and Sellers. Companies should focus on providing accurate information to buyers rather than making fake promises. Strict monitoring by Government, heavy fine and legal action should be taken against those who mislead buyers. By following these suggestions, the negative impacts of Overselling in the Real Estate market can be reduced, and a trust worthy environment can be created for Buyers and Sellers.