Advise for Buyers:
(a) if you are buying directly from the developer
(i) Choose the developer wisely: Background & history of the developer or the development company is paramount. Since your investment is coming from hard earned savings after paying tax and expenses, likewise it follows that the developer should also have earned his fair reputation the hard way by delivering projects on time. Every 15 years we have new set of developers in most cities. New developers should ideally be offshoots of a respectable business group or industry professionals.
(ii) Do not fall for the price: Just because there is a competing project with lower prices in the area doesn’t mean it is a better investment. On the contrary, in real estate, it is a bad investment, almost a trap. Non reputed developers tend to price their projects lower as compared to the reputed ones.
(iii) Visit the office of the developer: avoid the temptation of going through a broker even if the broker is offering you a pass through of his brokerage + engage with the sales team directly, there is lot more you will understand about the project and its timelines before you make the final decision to buy.
(iv) Project that you are considering: Must visit the project site. If you think it is too far for you to visit now at the time of buying the property, then one must reconsider the decision before you invest. If you find it inconvenient today, how will you use the property later. Even if you are considering it as a secondary investment option, one ought to be fully conversant with the locality and the area for monetizing your asset either by renting it or for selling it later. Real estate investments need constant monitoring, you cannot leave them to themselves.
Lastly, & most importantly, please take care to check with the developer for project finance closures for the particular project that you are considering investing in.
(v) Check online for all possible options: but AVOID showing interest or buying property online or through phone calls: Don’t fall prey to Brokers. Buying property from some random telecaller whom you have never met in your life is keen to help you make money! They tend to almost brainwash you into taking a decision right away and especially the project that they are promoting. The project that they have for you is the one which is sweetest for them in terms of their commissions, not for you!
(vi) Check RERA website for any transgressions by the developer.
(vii) Check the developer’s balance sheet:
(viii) Check for project finance closures:
(ix) DO NOT go by advertisements: huge spend on advertisements doesn’t mean that the development company is creditable.
(b) If you are considering buying an apartment through second sale or pre-owned in a new project
(i) Price: every property up for resale has its unique set of issues. Discount from the market price should be considerable for you to get into dealing with unknown people.
(ii) Through Brokers: Always beneficial to have a broker for negotiation the price and other issues.. Also, there is no law that brokerage is to be some percentage of the deal. Market norms doesn’t mean that you have to follow the herd.
(iv) From owner directly: best option