40 percent of real estate capital is stuck due to malpractices. Well, no more! In this article we talk about common Malpractices in Pakistan Real Estate Business
Pakistan’s real estate sector is very competitive. The real estate sector has a lot of potential to improve the economy. Real estate in Pakistan is one of the safest sectors to invest in due to the recent rise in prices.
The real estate sector is considered to be one of Pakistan’s most lucrative business and investment opportunities due to its high returns and security.
There are many real estate challenges in Pakistan. The real estate sector of Pakistan has malpractices. There isn’t proper attention to this sector. There are no regulatory authorities in Pakistan.
The real estate market of Pakistan has many common malpractices.
List of common Malpractices in Pakistan Real Estate Business
1. Poor Communication
2. Ineffective Marketing
3. Not Having a Clear Vision
4. Not Setting Realistic Expectations
5. Not Being Transparent
6. Failing to Build a Network
7. Ignoring the Client
8. Poor Documentation
9. Lack of Experience
10. Poor Negotiation Skills
11. Not Taking Care of the Client’s Interests
12. Not Monitoring the Business
13. Not Being Responsive
14. Not Paying Attention to the Client’s Needs
15. Not Communicating with the Client
16. Not Using Technology
17. Not Keeping Clients Updated
18. Not Following Up
19. Not Sending Thank You Notes
20. Not Making Sure that the Client is Happy
21. Not Ensuring That the Client Is Satisfied
22. Not Following Up With Potential Clients
23. Not Knowing the Laws
24. Not Being Professional
25. Not Being Accountable
26. Not Being Honest
27. Not Being Transparent
28. Not Being Open to Feedback
29. Not Being Consistent
30. Not Taking Responsibility for Mistakes
31. Not Being Responsible
32. Not Having a Clear Vision
33. Not Having a Clear Marketing Strategy
34. Not Setting Realistic Expectations
35. Not Having a Clear Marketing Plan
36. Not Having a Clear Business Strategy
37. Not Having a Clear Sales Process
38. Not Having a Clear Sales Strategy
39. Not Using Technology
40. Not Building Relationships
41. Not Having a Clear Business Plan
42. Not Being Transparent
43. Not Having a Clear Vision
44. Not Having a Clear Marketing
Few Malpractices are very common in Pakistan Real Estate Business
- Honey potting
- In-direct Selling
- Lack of verification
- House Flipping
Images of properties that have been sold or are not available are used to lure people. When a buyer contacts an agent for a property, they say it’s sold out, but the agent has a lead.
They hope to strike a deal by bombarding this lead with other options.
This is known as indirect selling and is the process of selling plot files in the name of getting approvals on your own.
This is the largest real estate fraud in Pakistan. When people are shown the dream of making huge profits by investing their money, many people are taken advantage of when they see the dream, but then
A scam where someone will tell you that they are building your dream house, but you will find out that the lots have not yet been sold or even started.
In reality, no such work is done and it’s just a sales trick.
Lack of verification
The lack of regulatory agencies in developing residential, commercial, and/or mixed projects often forces developers to construct them without NOCs.
The Nasla Tower Karachi was demolished due to the result of this.
There are many kinds of real estate scams, but this one is really growing.
In this scam, people who are owners of houses decide to exchange houses or plots of equal value, instead of money or cash involved. It’s a major risk but not many are willing to take.
When the rightful owner of the home claims ownership of the home, it is likely that the owner will try to claim that the house was not properly exchanged.
There are several ways to avoid being cheated by the seller or the agent. First, verify the details of the property before buying it. Be sure about the title, number of rooms, parking space, etc. You should make sure that the information provided is authentic. You should check the previous transactions of the property.
The previous history of the property can tell you a lot about the quality of the real estate. You should look at the location of the property. You should also check the proximity to schools and hospitals.
Make sure that the property you buy is in a safe neighborhood. You should check whether the seller has proper documentation. Check the condition of the property.