How To Avoid Getting Trampled in Biana Scam
You go to the real estate agents to sell your plot, 9 out of 10 agents give you a standing offer. The 10th one gives you an assessment which is higher than the other 9 but he does not have an offer. You feel that the real estate agents who gave you a standing offer are awesome. Immediately you bargain with all of them and sell your plot to the one giving you the highest offer. You happily enter into a Biana agreement to sell the plot. The buyer pays you 1/8th of the price and agrees to get the transfer within four to six weeks. Everything is going according to the plan. You need the money to send your son abroad, some for your daughters marriage in next month and planned for the remaining amount to be used for a business deal.
You come home pay advance for your sons fee, book the hall for your daughters marriage and make a business deal with a promise to pay them after six weeks. Feeling on top of the world as everything is going according to the plan for you. You believe that everything will be a smooth sale from here on, BUT you are wrong. Just 3 days before the promised transfer, you get a call from your agent that the buyer is unable to make the payment in time because of some financial issues. All of a sudden your blood pressure boils to new heights, everything you have planned for a decade when you bought this property is in jeopardy.
You call your awesome estate agent and discuss options about the Biana agreement. He informs you about another buyer who wants to buy this plot at less than a million from your previous sale. You agree without a second thought as you are stuck so deeply and caught unaware. Your awesome estate agent asks you to return the amount of first Biana agreement. You hesitate but he tells you that the first buyer (Investor) may take legal actions. After giving it a thought you agree and for the first time you realize that their is only one way out of this. You also realize now that your awesome estate agent had this plan B since day one when he gave you an offer.
Their can be many variations of such a scam but the net result is the same. In another variation the first buyer (Investor) may just sell it to a genuine buyer with-in the given time frame. however you end up losing a lot of money on your life time savings.These kind of transactions account to roughly 60 -70 % of market sales and are very common in DHA Lahore. In an upwards market the ratio may increase to 90% of market sales and so on.
How To Avoid Getting Trampled
It is easy to avoid this kind of a scenario and conclude a safe and smooth real estate transaction. First you need to understand what really happened here?. When you went to the real estate agents, they offered you a price straight away. Think about it, how is this possible ?.
What actually happened here is that their are a lot of real estate agents who are ready to do Biana agreement with you on a price lower than the market in order to just sell it out again at a higher price with in the time between the Biana agreement and the transfer date. This kind of trade is not illegal and is accepted in all business transactions. However it is a scam if you are not informed about the actual intention or if the agent/investor who did the Biana does not have enough money to get the plot transferred.
Personally as a real estate consultant i feel this kind of transaction is wrong, Any one who does it is more of an investor than a real estate consultant.
Next time you plan to sell your property, remember the following do’s and dont’s.
Things you should do
- The first thing you need to do is look for a credible real estate agent. Interview as many as you want but select only one.
- The real estate agent must be DHA registered agent. Real estate Agent who is not DHA registered reflects unprofessional attitude and puts you on a risk of scam.
- If you want to sell it urgently, you must define a time line with your consultant. Sell your property to investors who are ready to pay with in 10 days. You may get less money but you are safe from losing much more.
- Tell your consultant to find a genuine buyer first. If not sold within that time frame, you can look for a cash investor.
- If you have to do a Biana agreement, demand at least 1/4th amount as Biana for 4 weeks time and 1/3rd for 6 weeks time.
Things you should not do
- Do not give your property to more than one real estate agent. It gives a wrong signal to your agent that you do not trust him and in a competitive environment he concentrates on selling the property rather than looking after your interest.
- If some one gives you a standing offer that is an alert for a Biana (investor). Strictly a no go area, however if the offer is for cash payment than you should reconsider.
- After doing your research and price assessment stick with your plan. Do not change it on every new opinion or rumor you hear. Your inconsistency can shake your consultants trust in you. As part of your team you need to look after his interest while he looks out for yours
These are just few of the things you should consider while selling a property. Times lines may vary as in a fast moving market it may take just 4 weeks time to sell your plot at a good price. However in a slow market it may take a couple of months. It is important that before you plan to sell it, you understand the market and set a realistic time line . we offers you a monthly market analysis which can help you understand the present market conditions.