Everybody around you is either planning to invest in a property or has already done so. You might have been holding back waiting for the right property at the right price developed by the right person. While there are many parameters by which you can judge a right property, how do you go about selecting the builder?
Here is something you should know –
The Mantra: Research Well
Most buyers look into the budget and the location.Ideally, the developer is of prime importance too. A good builder will see to it that your house is delivered to you just as you like it clean title, with all the approvals and value for your money.
Take for instance, the case of delayed projects.These have in the past crippled home buyers. Project delays can happen if approvals are not in place or the developer is facing a financial crunch.
There are a number of reasons, “Some developers try to sell property even before they have obtained the license to do so, some other mismanage their cash inflow, others go overboard with their expansion plans,“ says Arun Alok, an individual consultant at Top Properties.
Always research on the track record of the developer. Check whether the builder has delivered projects on time, of good quality and takes care of his brand even post sales.
Arun gives a classic example of a developer who had a track record of late project deliveries. “This one time reputed developer grew so ambitious that with the money he got from buyers, he used it to buy plots in his next construction site.“
In a slow market, just like how it is today, marketing strategies flood the market. Even real estate sector is open to it. While marketing does bring more information on your plate, do not give in to it blindly.
You may have heard of discounts, deals, assured returns or buy back guarantees. It is an indicator of stress in the market. To boost sales, developers may be ready to give waivers on the total cost of the house, gold coins, free appliances and fittings or even a car! Sounds wonderful, doesn’t it?
Though these marketing tactics are ethical, as a buyer, you must be careful about where you are putting your money. If the house suits you, go for it, with or without a deal.
Check if the project has all legal approvals and NOC’s from related regulatory authorities.Find if the project land is registered with the builder and if he has all necessary sanctions generated with clear information on approved FAR.
You also need to know if the sewage, water connection and electricity sanctions have been obtained. Check whether the project is rated by any credit rating agency. Generally, agencies give ratings after detailed survey and due diligence of the project.
Do not restrict yourself
Magicbricks reached out to first home buyers across the country through a recent survey. The findings were interesting.About 39 per cent first home buyers indicated that they would consider family advice as sacrosanct.
A close second was reliability on real estate portals with 33 per cent relying on the online medium for research and options. Consulting brokers and newspaper advertisements were other mediums.
When it comes to property purchase, everybody around has advices for you. They may be talking from previous good or bad experiences. It is good to lend a ear. At the same time, do not restrict yourself from exploring.
Shortlist the kind of house you are looking for. Zero in on the developer firms that offer you with what you have in mind. Different developers have different levels of expertise and ideas about how to go about the plan and construction.
A new developer in the market may not really be a bad choice. Do explore your options and then make the final choice. Be ready with all your homework so that when the best deals come, you are ready to plunge.
How good is the firm after sales?
The developer-consumer relationship does not end with the close of sales. Brand management starts after the sale is over.Many realty giants have established their base only because they were able to woo buyers with a commitment that they would address any problem that may crop up.
Similarly, many big developers have lost their image because they failed to stick to timelines, original maps etc.
If a firm extends help in terms of maintaining a website that documents construction updates and encourages after sale meets regarding discrepancies in clauses, the firm has already won a lot of hearts. Refrain from investing in properties owned by unstructured and flyby-night developers.
For most buyers, a property purchase is a very big investment. Depend on the best.
Sneha Sharon Mammen, Times Property, Magicbricks Bureau/ Hyderabad