Selling a property for ₹1 crore does not necessarily mean the owner will receive the entire amount as usable money. Brokerage fees, capital gains tax, outstanding home loans, maintenance expenses and legal costs can reduce the final proceeds. The time taken to find a buyer can also add to the expense, as owners may continue paying property-related bills while waiting for an acceptable offer. Gaurav Mavi, co-founder of BOP.in, told NDTV that sellers often calculate returns by comparing the purchase price with the expected selling price without accounting for all the deductions that follow.

Brokerage is one of the first expenses sellers may encounter when engaging a property agent. The commission depends on the agreement, location and type of property, but even a small percentage can amount to a substantial sum on an expensive transaction. For a property sold at ₹1 crore, a 1% brokerage fee would cost ₹1 lakh, while a 2% fee would amount to ₹2 lakh. Sellers should clarify the commission rate, when payment becomes due and whether additional charges apply before signing an agreement with an agent. The fee is generally calculated on the transaction value rather than the profit earned by the seller.

Capital gains tax can further reduce the amount retained from a sale. The applicable tax depends on factors such as the acquisition date, sale date, purchase cost, eligible improvement expenses and available exemptions. Under the rules described in the report, property held for more than 24 months is generally treated as a long-term capital asset, with long-term gains usually taxed at 12.5% without indexation. Eligible resident individuals and Hindu Undivided Families selling land or buildings acquired before July 23, 2024, may be able to choose the earlier 20% rate with indexation if it results in a lower tax liability. Short-term gains are generally taxed at applicable income-tax slab rates. For resident sellers, transactions involving a sale consideration or stamp duty value of ₹50 lakh or more generally attract 1% tax deducted at source under Section 194-IA. On a ₹1 crore transaction, this could mean ₹1 lakh deducted upfront, which is a tax credit rather than necessarily the final tax payable.

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Outstanding home loans are another major deduction from the sale proceeds. If a property sells for ₹1 crore and the owner still owes ₹30 lakh to the lender, only ₹70 lakh remains before other expenses. Sellers should obtain an updated loan-closure statement and confirm the documentation required to settle the debt and release the original title documents. Delays in closing an existing loan can also affect plans to purchase another property, particularly when the proceeds are needed to fund the next transaction.

Maintenance charges, repairs, property tax and housing society dues can continue accumulating until the sale is completed. Vacant properties may also require cleaning, repainting or repairs to improve their appeal to buyers. For example, spending ₹60,000 on overdue maintenance and repairs reduces the amount available from the sale by the same amount. However, higher spending does not guarantee a better offer. Mavi recommends assessing which improvements are likely to increase buyer interest and avoiding expenses that may not translate into a higher selling price. Clearing outstanding dues before the transaction can also help prevent disputes and delays.

Legal and documentation expenses, along with the cost of waiting for a buyer, can further affect returns. Depending on the transaction, sellers may need to pay for legal advice, property records or resolving title-related issues. Holding costs can also accumulate when an owner rejects an offer while waiting for a better price. At ₹10,000 a month, property-related expenses would add up to ₹60,000 over six months. In an illustrative calculation, a ₹1 crore sale price, minus a ₹30 lakh outstanding loan, ₹1 lakh brokerage, ₹60,000 in repairs and maintenance, and ₹25,000 in legal and documentation costs, leaves ₹68.15 lakh before capital gains tax and other expenses. Sellers should therefore estimate their net proceeds before accepting an offer and keep a margin for unexpected costs.

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