Buyer's Guide

Welcome to www.epropertylanka.lk, your go-to platform for all your property-buying needs in Sri Lanka. We understand that finding the perfect property can be a daunting task, but we're here to make the process easier for you. This comprehensive buyer's guide will help you navigate our website effectively and find the best property that suits your needs and preferences.

Setting Your Budget

Before you start your property search, it's essential to determine your budget. Consider your financial situation, including your savings, income, and any financing options available. Knowing your budget will help you narrow down your choices and save time during your search. To help you out consider the following:

Determine Your Financial Limit

Prior to embarking on your real estate search, it's vital to gain a thorough understanding of your financial circumstances. This entails evaluating your earnings, savings, and monthly expenditures. This process will provide you with insight into the amount you can comfortably allocate toward buying a property without burdening your financial situation.

Set a Maximum Spending Limit

After evaluating your financial status, it's advisable to set a limit on your spending. This maximum limit represents the highest amount you are willing to invest in a property. Determining this boundary assists you in steering clear of considering properties that exceed your financial means.

Flexibility within Your Budget

While it's important to set a maximum spending limit, it's also helpful to have some flexibility within your budget. This flexibility allows you to consider different property options, including those that may be slightly above your initial budget but still within your overall financial comfort zone.

Plan for Future Expenses

Think about your long-term financial goals and how a property purchase fits into those plans. Ensure that buying a property won't jeopardize other financial priorities like savings, retirement, or paying off debts. Its important to note that there will be everlasting house expenses to deal with such as maintenance, utility bills, etc.

Stick to Your Budget

After establishing your budget, it's crucial to adhere to it throughout your quest for a property. This will prevent you from becoming obsessed with a property that exceeds your financial limits and making a purchase that might put stress on your finances.

Use Advanced Search Filters

The www.epropertylanka.lk offers advanced search filters to help you refine your property search. Utilize filters such as price range, property type, location, and more to find properties that meet your criteria.

 How to research a property

When researching for properties there are some specific factors to keep in mind and there are:

Location

Sri Lanka has properties all over the island, but some cities like Colombo, Gampaha, Kandy, and Galle have high-demand areas. Always consider where you want to buy your property as the location can affect the worth of the property and your lifestyle.

              Property Check up

When Purchasing make sure to consider the following:

·       Completion Date and Payment Plan

If you're buying an apartment that's still under construction, find out when it will be finished and how the payment plan works.

·       Documentation and Approvals

Ensure that all the necessary documents and approvals for the property's development are in order. This is important for legal and ownership reasons.

·       Mortgage Status

Check if the property is mortgaged to a bank. This can affect the process of getting ownership deeds.

·       Developer and Contractor Reputation

Research the reputation of the developer and the contractor involved in the project. This can give you confidence in the quality of the property.

·       Infrastructure and Common Facilities

Look into the availability of infrastructure like water, electricity, and common facilities such as parking, swimming pools, etc. Make sure they align with the property's plan.

Doing thorough research on these factors will help you make an informed decision when buying property, especially when it comes to apartments in Sri Lanka.

Return of Interest

Return on Real Estate Investment, often abbreviated as ROI, is the measure of the profit a real estate investor can earn after subtracting all the associated expenses of the investment. This return is composed of two key elements:

1.       Capital Gain: This is the increase in the property's value over the time you own it. You realize this gain when you sell the property for a higher price than what you initially paid for it.

2.       Income Generated: This includes the money you make from renting out the property. Rent income is a recurring source of profit during the period you hold the property.

To calculate ROI, you need to subtract all the costs and expenses you've incurred during the time you've owned the property. These expenses can include items like insurance premiums, management fees, maintenance costs, and interest payments if you financed the property through a bank loan.

In essence, ROI gives you a clear picture of how profitable your real estate investment has been once all the expenses are considered. It helps investors assess the financial performance and viability of their real estate ventures.

How to Find a Property for Yourself

Browse through the extensive property listings in www.epropertylanka.lk. Click on individual listings to view detailed information, including Property Descriptions, Images, and Contact Details of the seller or agent. When buying property in Sri Lanka, there are some important things to think about such as:

Weather

First, decide where you want to buy and what type of property you want. Including Location, Size, Layout, etc. and consider the weather patterns there. Sri Lanka has monsoons that can affect your property. What looks nice in February might be flooded in May likewise landslides can be of a major issue therefore, make sure that the weather may not have any effect on the property for your safety and your investment’s.

Necessary Utilities

Check if the property has proper access to water, electricity, and phone/wi-fi signal. Some places obtain water from the municipal which can result in frequent water cuts and others may get water from tube wells. Some properties can have single-phase or three-phase electricity where latter provides more stable power than the former. You must also check out if Service Provider e.g. Dialog, Mobitel, etc. has coverage in that area as certain places may not have your service provider’s coverage.

High Development Area

If you invest a property in a high development area where there can be future tourist or an increase in job openings your property’s value will sky rocket. With that said, you need to be careful as to choose a place where there will be no distractions from the future urban city as if can affect your piece and privacy. Here it all comes down to your preferences and the goal of purchasing the property as this could be an ideal place to Rent out due to the increase in job opportunities and more. 

External facilities

Whatever property you choose, make sure that the main facilities are present such as Schools for your kids, Hospitals, Supermarkets, etc. This can make it feasible for a more convenient living.

Type of Deeds

In Sri Lanka, there are several types of deeds used to transfer property ownership and establish legal rights. The most common types of deeds include:

             Deed of Transfer

This type of deed is used to transfer ownership of a property from one person to another. It is the most common type of deed used in Sri Lanka, and it is required for all property sales.

  Deed of Gift

This type of deed is used to transfer ownership of a property from one person to another without any monetary consideration. It is often used to transfer property from parents to children or between spouses.

  Deed of Mortgage

This type of deed is used to secure a loan against a property. The deed gives the lender the right to take possession of the property if the borrower defaults on the loan.

  Deed of Lease

This type of deed is used to create a landlord-tenant relationship. It sets out the terms of the lease, such as the rent, the length of the lease, and the rights and obligations of the landlord and tenant.

  Deed of Declaration

This type of deed is used to declare a person's interest in a property. It is often used to clarify the ownership of a property that is held in joint tenancy or to declare a right of way over a property.

Save Your Favorites

As you explore listings, save your favorite properties to your account for easy reference. This feature helps you keep track of properties that catch your eye. You can simply add properties for your favorite by clicking the bookmark icon on the ad tile or the Bookmark icon on the Details page.

Contact Sellers or Agents

Once you've identified a property of your interest, don't hesitate to get in touch with the sellers or agents directly. Ask questions, request additional information, and arrange property viewings if necessary. You can contact the seller or agent by:

• Call
• Message
• WhatsApp
• Email
• Web Chat

All the Seller contact details are provided in details page Contact section for your convenience.

Attend Open Houses or Property Visits

Whenever possible, attend open houses or property visit to get a firsthand look at the property and its surroundings. This will help you assess whether the property aligns with your expectations.

When conducting a house inspection, it's essential to carefully examine various aspects of the property to ensure it meets your needs and is in good condition. Here's a comprehensive checklist of things to check during a house inspection:

Exterior

• Roof: Look for damaged or missing shingles, signs of leaks, or sagging areas.
• Gutters and Downspouts: Check for clogs, rust, or damage.
• Siding: Inspect for cracks, peeling paint, or signs of rot.
• Foundation: Look for cracks, settling, or water damage.
• Windows and Doors: Ensure they open and close properly, check for drafts, and inspect the condition of seals and frames.
• Landscaping: Examine the yard for drainage issues, overgrown vegetation, or potential hazards.

Interior

• Walls and Ceilings: Look for cracks, water stains, or signs of structural issues.
• Floors: Check for squeaky or uneven floors, damaged tiles, or buckling hardwood.
• Doors and Windows: Ensure they open and close smoothly and are properly sealed.
• Electrical System: Test switches, outlets, and circuit breakers for functionality and safety.
• Plumbing: Inspect for leaks, water pressure, and drainage issues in sinks, toilets, and showers.
• HVAC System: Test heating and cooling systems to ensure they work correctly.
• Appliances: Check the condition and functionality of included appliances.
• Lighting: Verify that all light fixtures work properly.
• Smoke and Carbon Monoxide Detectors: Ensure they are installed and functioning correctly

Kitchen

• Cabinets and Countertops: Check for damage, wear, and proper functionality.
• Appliances: Test all appliances, including the stove, refrigerator, dishwasher, and microwave.
• Sink and Faucets: Look for leaks or water damage.

Bathrooms

• Plumbing Fixtures: Check for leaks, proper drainage, and functioning faucets, showers, toilets and good water pressure.
• Ventilation: Ensure there is proper ventilation to prevent mold and moisture issues.
• Tiles and Grout: Inspect for damage or signs of mold or mildew.

Basement and Attic

• Check for signs of water intrusion, dampness, or mold.
• Inspect the condition of insulation and ventilation.

Garage

• Test the garage door opener and ensure it operates smoothly.
• Check for any signs of structural issues or water damage.

Safety Features

• Verify the presence and functionality of fire extinguishers, smoke detectors, and carbon monoxide detectors.
• Ensure there are handrails on stairs, especially if the property has multiple levels.

Exterior Structures 

• Inspect any additional structures, such as sheds, decks, or patios, for safety and condition.

Pests and Mold

• Look for signs of pests, such as rodent droppings or termite damage.
• Check for mold or mildew, especially in damp areas like basements.

Documentation

• Request any relevant documentation, such as maintenance records, warranties, or permits.

It's important to conduct a thorough inspection or hire a professional home inspector to ensure you have a clear understanding of the property's condition. Any issues identified during the inspection can be discussed with the seller and potentially used for negotiation or as contingencies in your purchase agreement.

Seek Professional Advice

Seeking professional advice is a crucial step in the process of buying a property. It involves consulting with experts in various fields to ensure that you are making a well-informed and sound decision. Here are some key aspects of seeking professional advice when buying a house:

1. Real Estate Agent
• A real estate agent can provide valuable assistance throughout the buying process. They can help you find suitable properties, negotiate with sellers, and navigate the paperwork involved in a real estate transaction.

• Choose an experienced and reputable real estate agent who is familiar with the local market and can provide insights into property values, neighborhoods, and trends.

1. Real Estate Attorney
• A real estate attorney specializes in property law and can review contracts, offer legal advice, and ensure that the transaction complies with all applicable laws and regulations.

• They can help you understand the terms and conditions of the purchase agreement, address legal concerns, and ensure a smooth closing process.

1. Home Inspector
• A qualified home inspector assesses the physical condition of the property. They examine the structure, systems (such as plumbing and electrical), and overall safety.

• The inspector provides a detailed report highlighting any issues or needed repairs, helping you make an informed decision about the property's condition.

1. Mortgage Broker or Lender
• If you require financing to purchase the property, a mortgage broker or lender can help you explore various loan options, explain the terms and interest rates, and guide you through the mortgage application process.

• They can help you determine the amount you can borrow, calculate monthly payments, and assist with pre-approval for a mortgage.

1. Financial Advisor
• A financial advisor can provide insights into the financial implications of buying a property. They can help you assess your overall financial situation, including how the purchase fits into your long-term financial goals.

• They can also advise on the best financing strategies and how homeownership aligns with your investment portfolio.

1. Insurance Agent
• Homeowners insurance is essential to protect your investment. An insurance agent can help you choose the right coverage for your property, considering factors like location, property type, and potential risks.

• They can provide quotes and explain policy details, ensuring you have adequate protection.

1. Surveyor
• In some cases, a land surveyor may be needed to verify property boundaries and identify any encroachments or easements. This is particularly important when buying land or properties with large plots.

1. Tax Advisor
• Consult with a tax advisor to understand the tax implications of your property purchase. They can help you explore potential tax deductions, credits, and property tax considerations.

1. Title Company
• A title company conducts a title search to ensure that the property's title is clear and free from any legal disputes or liens. They also provide title insurance to protect your ownership rights.

Seeking professional advice ensures that you make informed decisions, minimize risks, and navigate the complex process of buying a property with confidence. These experts can provide guidance tailored to your specific needs and circumstances, ultimately helping you make a successful and secure property purchase.

Negotiate the Deal

Negotiating the deal when buying a property is a crucial step in the home-buying process. It involves a series of discussions and offers between you (the buyer) and the seller to come to an agreement on the price and terms of the sale. Here's a more detailed explanation of the negotiation process:

1. Initial Offer
• You, as the buyer, typically start the negotiation by making an initial offer to the seller. This offer includes the proposed purchase price, any contingencies (conditions that must be met for the sale to proceed), and the desired closing date.

• The initial offer can be based on factors such as market research, the property's condition, and your budget. It's usually lower than your maximum budget to leave room for negotiation.

1. Counteroffers
• The seller may respond to your initial offer with a counteroffer. They might propose a higher price, different terms, or adjustments to contingencies.

• The negotiation process often involves several rounds of counteroffers as both parties work toward an agreement.

1. Price Negotiation
• Price negotiation is a central aspect of the deal. Be prepared for some back-and-forth as you and the seller try to find a price that both parties are comfortable with.

• Factors that can influence the price negotiation include the property's market value, its condition, the local real estate market, and the seller's motivation to sell.

1. Contingencies
• Contingencies are conditions that must be met for the sale to move forward. These can include inspections (home inspection, termite inspection, etc.), appraisal contingencies (the property must appraise for a certain value), financing contingencies (you must secure a mortgage), and more.

• You can negotiate the specifics of these contingencies, such as the timeline for inspections or the amount of earnest money (a deposit) you'll put down.

1. Repair Negotiations
• If the home inspection reveals any issues, you may negotiate with the seller to have them repaired or to receive a credit for the necessary repairs.

• The negotiation might involve negotiations on who will pay for specific repairs or whether the seller will reduce the sale price to account for them.

1. Closing Costs
• Negotiations can also extend to closing costs. You may ask the seller to contribute toward your closing costs as part of the deal.

1. Closing Date
• The closing date is another negotiable factor. You and the seller should agree on a date that works for both parties.

1. Acceptance and Final Agreement
• Once both parties agree on all terms, a final agreement is reached. This agreement is typically documented in a purchase agreement or contract.

• Both you and the seller will sign this contract, making the deal legally binding. Typically, this is done with the notary public aka an attorney looking into the process.

1. Escrow
• After the agreement is reached, the earnest money is typically placed in an escrow account until the closing. This demonstrates your commitment to the deal.

1. Completion of Contingencies
• You will need to fulfil any contingencies specified in the contract, such as inspections, appraisals, and securing financing.

1. Closing
• The closing is the final step in the process. It involves signing all necessary paperwork, transferring funds, and officially taking possession of the property.

Effective negotiation skills are essential during this process. Be patient, communicate clearly, and work with your real estate agent or attorney to navigate the negotiation successfully. Keep in mind that the negotiation process can vary depending on local real estate customs and market conditions, so it's essential to understand the specifics of your situation.

Finalize the Purchase

Finalizing the purchase of a property is the crucial step in the home-buying process where all the necessary paperwork and financial transactions are completed to officially transfer ownership from the seller to the buyer. Here's a more detailed explanation of what finalizing the purchase entails:

1. Sales Agreement Review
• Before finalizing the purchase, both the buyer and seller should carefully review the sales agreement or purchase contract. This document outlines the terms and conditions of the sale, including the purchase price, contingencies, and timelines.

1. Mortgage Approval
• If you're obtaining a mortgage to finance the purchase, ensure that your loan application has been approved by your lender. This often involves providing additional documentation, such as income verification and property appraisal.

1. Home Inspection Contingency
• If your offer included a home inspection contingency, review the inspection report. If there are any significant issues that need addressing, negotiate with the seller on how they will be resolved. This may involve repair agreements or price adjustments.

1. Title Search and Title Insurance
• A title search is conducted to ensure that the property's title is clear of any liens, disputes, or legal issues. Title insurance is typically purchased to protect the buyer and lender from unforeseen title-related problems.

1. Home Appraisal
• The lender will order an appraisal to determine the property's market value. If the appraisal value comes in lower than the purchase price, you may need to negotiate with the seller or consider adjusting your offer.

1. Secure Homeowners Insurance
• It's essential to secure homeowners’ insurance before closing. The lender will require proof of insurance to protect their interest in the property.

1. Closing Costs
• Be prepared to pay closing costs, which can include various fees, such as attorney fees, title insurance, property taxes, and lender fees. Review the Closing Disclosure document provided by your lender to understand these costs.

1. Final Walk-Through
• Before the actual closing, schedule a final walk-through of the property. Ensure that the property is in the same condition as when you made the offer and that any agreed-upon repairs have been completed.

1. Closing Meeting
• The closing meeting, also known as the settlement, is when all parties involved in the transaction gather to sign the necessary paperwork. This typically takes place at a title company or attorney's office.

1. Sign Documents
• During the closing, you will sign various documents, including the mortgage note, deed of trust or mortgage, and the HUD-1 Settlement Statement. Be sure to read and understand what you're signing.

1. Payment and Funds Transfer
• The buyer will provide the necessary funds for the down payment and closing costs. These funds are often wired to the closing agent or provided as a cashier's check.

1. Title Transfer
• The seller will sign the deed to transfer ownership to the buyer, and this deed will be recorded with the appropriate government authority.

1. Receive Keys
• Once all documents are signed, funds have been transferred, and the deed is recorded, you will receive the keys to your new property.

1. Post-Closing Tasks
• After the closing, there may be tasks like updating utilities, setting up services, and notifying relevant parties of your change of address.

Move-In and Enjoy

Congratulations! You've found your dream property on www.epropertylanka.lk. Now, it's time to move in and enjoy your new home or investment.