Bankrupt, need to sell house, urgent sale, shocking price at the end of the year

At the end of the year, residential real estate transactions are the busiest of the year. However, if not careful, land buyers and investors can easily fall into the "trap" of land brokers.

Talking to reporters, Mr. Do Ngoc Thang - Regional Sales Director at OneHousing shared: Legal risks, "overpriced" prices, and unprofessional brokers are the three traps that set up for home buyers at the end of the year.

can in the afternoon with the support of the land of the wife and the house you meet shock price at the end of the year picture 1 — Mr. Do Ngoc Thang - Regional Sales Director at OneHousing. (Photo: PH)

Revealing the three traps that home buyers fall into at the end of the year

With the general sluggishness of real estate in the past year, how is the residential land market developing at the end of this year, sir?

- Regarding the residential land sector, from the past to the present, in Hanoi with 4 inner-city districts and currently 12 inner-city districts, it has not been affected much by market trends of increase or decrease.

Inner city - where land fund cannot be expanded but population is still increasing and most importantly, demand is real demand - for living, investing, doing business, renting... always exists, so inner city real estate prices are almost unchanged, sometimes only increase slightly but increase steadily, home buyers do not worry about losses and have a safe haven for good cash flow.

From now until the end of the year, residential real estate transactions are the most active - that is also true to annual practice.

With the mentality of wanting to close quickly, what risks can home buyers encounter when buying a house at the end of the year? What traps are waiting for home buyers in the current market?

- The risks of buying a house are not only at the end of the year, the eternal problem of customers buying real estate is first the legality, second the valuation, third the advice of the broker.

Legally, customers may encounter risks when transacting houses without a certificate, buying and selling with handwritten documents or notarized documents, sharing the certificate, the certificate is in a black credit place, or the homeowner is depositing for 2-3 people... The most common risk is that the homeowner holds the red book to borrow from a financial institution - all must know the sale papers or write a deposit contract.

If the broker does not check carefully for the customer, it will be very risky for the buyer and bring unpredictable consequences because most of the real estate values are many billions of dong.

Second is about price. At the end of the year, there will be a lot of information about sales: "Buying a house because of debt, urgent sale, shocking price at the end of the year..." It is very likely that this information is aimed at greed for profit. If the brokers advise you that the price is much cheaper than the market price, then I definitely advise you to question it and be wary of things that are unexpectedly cheap. Everything has its price.

For brokers, the initial story of "fishing" for bargain-priced, shockingly discounted properties... but in fact it is not true, it is a trick to attract buyers' attention and then lead them to other properties - is no longer a new story, and has even become a common practice in many markets. Or brokers taking advantage of buyers' psychology of closing quickly to raise prices and "eat" the difference is also not uncommon.

can in the afternoon with the support of the land of the wife and the house you meet shock at the end of the year picture 2 — "Land brokers" have many tricks at the end of the year. (Photo: VNT)

In a market with so many “gray areas”, buyers can face risks at any time. As an expert with decades of experience, what advice can you give to home buyers?

- Residential real estate transactions are still happening every day, the most important thing for buyers when entering the market is to research carefully to identify the risks they may encounter.

Regarding the legality of real estate, experience shows that buyers need to carefully check the red book and the information on the book must be accurate before making a deposit. And of course, they should transact through a reputable brokerage firm, because they are the ones with the best expertise to ensure the legality of that real estate.

Regarding the price, today, go see apartment A, apartment B, apartment C with such and such floor plan, such and such location, such and such alley,... then you can estimate the average price in this area from about how much? If the customer meets a professional and knowledgeable broker who can advise us on why we should buy this location, how much the price here is, what are the legal procedures for the transaction?... then we will feel more secure.

In residential transactions, the professionalism of the broker is extremely important. Besides the legality and price, as I mentioned above, the broker always appears in the whole process of the customer, from searching, visiting the house to carrying out the purchase and sale procedures.

So, right from the first meeting, through some questions, you can check if they have a profession, are dedicated, understand the area, etc.

Meeting a professional broker working for a large and reputable unit or enterprise can help customers minimize all risks in the residential land transaction process, because then the brokerage unit itself is responsible for the customer's transaction, instead of an independent broker.

Finding "opportunities in danger" in the residential real estate market

As you mentioned, there are still many customers who recognize the opportunity to invest in residential real estate. In your opinion, what is the price segment that buyers can aim for at the end of this year, and is this market really sustainable for buyers' cash flow?

- The price segment when investing in residential real estate depends entirely on the available finances of the buyer. Because in the market, apart from large brokerage units that have close cooperation with banks, the rest often do not have financial solutions for residential buyers.

For residential land in inner-city districts, the price segment with the strongest transactions is from 3-6 billion VND. Vietnamese people have a mentality of playing it safe and staying put, many people still prefer to live in houses on the ground. For houses in alleys, motorbikes can enter, the price is around 100 million/m2 to 120 million/m2, a 50m2 house is around 5 billion, built with 5 floors, 35-40m2 per floor, the usable area is also up to nearly 200m2.

The supply in the center of Hanoi has almost no big fluctuations because the land fund cannot expand, the inner-city residential land transactions will rotate according to demand. Supply and demand are always balanced regardless of the fluctuations of the real estate market in general. When someone wants to sell, there will be someone who wants to buy and vice versa.

For example, when I first got married, I only wanted to buy a 30m2 house, but after 3-5 years of doing business and earning a lot of money, I naturally wanted to find a larger place. At this time, I would want to sell and then I would continue to want to buy. Or many people live in a big house, but if their business is difficult, they can sell the big house and move to a smaller house to get capital to do business... Supply and demand for residential real estate are always available. Even I have lived in 5 houses.

can in the afternoon with the support of the land of the wife and the house you meet shock at the end of the year picture 3 — The price segment when investing in residential real estate depends entirely on the available finances of the buyer. (Photo: OH)

Is this true for the suburban land segment, which was also very popular with investors a few years ago when the market boomed?

- About 2-3 years ago, investors participating in suburban real estate investment enjoyed hot profits, in the style of "when the tide rises, the boat rises".

However, we see previous lessons, in 2010 real estate in the suburbs increased rapidly but when the bubble burst, it started to decline and many investors struggled, even went bankrupt, selling many houses at that time... This situation repeated in 2022 and early 2023, news of selling at a loss to pay off credit debt was widespread.

In my opinion, when the market recovers, it will first be in the segment with real housing demand such as apartments and townhouses. The suburban land will face more difficulties when the National Assembly passes the Real Estate Business Law to "tighten" the subdivision and sale of land to avoid speculation.

As legal regulations are increasingly improved, promoting market transparency, the suburban land segment is becoming less and less attractive in customers' investment portfolios.

Finally, do you have any advice for home buyers this year-end?

- Advice for buyers is that if there is a product that meets the criteria, meets the homeowner who needs to sell, is willing to sell, has standard legal conditions, and has available finances, etc., then they should buy it so they can sleep soundly, without having to worry about going to see a house today and going to see a house tomorrow, focusing that time on business, making a happy and warm Tet holiday, because inner-city residential land has never had a price reduction.

Thank you very much!

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