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
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.
