CHECKLIST FOR A PURCHASE
To start with, , let us understand how to look for an ideal developer for purchasing your apartment. Purchasing a home is the realisation of a dream.
A house is always an expensive purchase. This is why it’s important to look for projects by well-respected builders. That is, If a company is listed, you will find financial information about it in its balance sheet. Avoid purchasing property in any of the projects if the company has high levels of debt. As, This increases the likelihood of delays in project completion.
It is important to find out the number of projects that the developer has completed in the past. Avoid novices, as they are less likely to have the financial ability to weather downturns.
Similarly, Look at past projects to find out more about the Builder. Was the possession handed over on time by the developer? Did he deliver all of the apartment specifications and on-campus facilities he promised? What was his record on maintaining the project on completion? Were there any deviations from the approved plan? Were all the amenities provided?
The reputation of the builder
How can you check the builders’ reputation?
1. Background of Promoters
Market check
A lot of this research work is simple. You can google the company’s name, and a lot of information pops up.
You can check the Blogs and Browse other consumer forums and customer feedback. Sometimes, customers may leave feedback on the website and blogs. Taking feedbacks from existing customers is a great idea. As a result, you get insights into the after-sales service that a developer provides.
You can check for past projects on real estate portals. You will also get a lot of information on the current market price or rentals of the property. A builder’s market report can reflect the percentage of price appreciation.
Therefore, You can judge a builder’s standing by the current market price of his past projects.
These rates you can compare with other projects in the same area.
2. Financial Situation of the Developer’s Organization:
This is where the banks are responsible for assessing the financial situation of the developer’s organisation. The lender examines the company’s balance sheet, profit and loss statements to determine if the developer can repay the loan.
As a result, This may delay the project. NBFCs and banks can even seek the assistance of the concerned Registrars of Companies. You can even visit the Ministry of Corporate Affairs website (mca.gov.in).
3. Grading of Projects
Often, property buyers invest their entire lives savings in property. It is becoming more important to differentiate real estate projects based on several parameters.
The developer’s ability and willingness to complete the project on time is a yardstick. You can check the developers’ legal credentials. The buyer can gauge the Quality of the developers’ construction.
It is, therefore, imperative to check on the quality, legal documentation and track record of project promoters.
Real estate ratings
Some rating agencies provide detailed ratings of real estate projects. CRISIL Real Estate Star Ratings and CARE real-estate star rating are some of the most well-known rating agencies. Hence, They can provide a city-specific assessment of real property projects.
These agencies help you compare and find the best projects in that particular area. Rating agencies only rate developers who are registered with them.
4. Track record
An established developer has a track record. Firstly They are professional. With experience, they have established processes and systems. Check the developers track record to see how successful past projects were. Lack of transparency is enough to make you not want to buy.
Secondly, You may Discuss with friends and family before making a choice. Visit projects of other developers as well. Make a comparative analysis of all the projects.
Thirdly, ensure the developer is a member of the builders association. In advertisements, it is common to state that the developer is a member of CREDAI (Confederation of Real Estate Developers Association of India). These self-regulatory bodies have strict rules for builders. The norms are stringent. Any deviation could result in the company coming under a blacklist.
Therefore, choose a builder who is a member of the Association. It facilitates checking and inquiring about the developer.
5. Certificates for quality
There are authorised international organisations and they provide certification for quality. Hence, These certificates are useful.
They help to verify the quality of a project. Eight principles are the basis of the International Organization for Standardization’s certification for quality management systems. These include customer satisfaction and customer focus. A certified ISO 9001:2008 builder who is under audit is more professional.
Consider your family size before booking an apartment.
In this section we highlight how Your family size will influence your decision-making process for a property purchase.
If you are unmarried, think about the possibilities and situations that may arise after marriage. Prepare and plan accordingly before investing. If you have booked 2 BHK as a bachelor, you may want three BHK post marriage.
With time and in different stages of life, perspectives and wants change.
It is also possible that a newly married couple may invest in a studio apartment. They may not realise they will need more space later on when their children are born and their parents move in with them. Separate study rooms may be required for the children as they grow up.
Do some basic calculations if you’re thinking about buying or already planning to buy a dream home. This could be a small home, a large home, a luxury home, a villa, or even a farm home. Most importantly, You should calculate the size of your family and how many children you have, or what the expected or desired number of children you will have in the future.
So, You will need to account for any dependents such as parents, siblings, or anyone else in the future. These questions will assist you in making the right choice.
