Investment in Real Estate is generally one of the biggest achievements in any individual's life. But before one can actually settle in, a buyer needs to keep in mind certain things, so as to ensure that they are striking the right deal.
A builder brings credibility and reputation to the project. Choosing the right builder is vital here are some tips that will help you choose the right builder.
Word of mouth: This is the easiest way to get details and knowhow about the reputation of a builder. If any builder has recently done some work for your colleagues, family friends etc then they will surely be in a position to share their experiences with you. This is absolutely unbiased information that no broker can give you.
Reputation and background check: It's imperative to conduct a check on the background and reputation of the builder. A buyer can get a list of builders from websites or the local newspaper. A detailed research on projects that the builder has completed should also be verified, the best source for this are the residents that are already residing in projects that are past the stage of possession. A list of ongoing projects and future projects should also be prepared.
Project quality: It is very important to check the quality of the projects the builder has built in the past. This gives the buyer a clear understanding of the standard of the builder, the kind of materials he uses, the quality standards etc. Again, your best bet is residents provided there are some mature projects in the builder's kitty.
Builders Association with different organizing bodies: It helps if the builder is associated with respected trade organization or Builders associations, call it peer pressure. There are many such organizations or associations such as Builders Association of India (BAI), Confederation of Real Estate Developers Association of India (CREDAI)...etc which provides an ethical code of conduct which is mandatory to follow for all the member builders and developers. It lays down certain rules that need to be followed by all builders or members and any one who defaults or violates the rules are listed in list of blacklisted companies.
Blueprint and Plan: The buyer must ensure that the project has been fully approved by the concerned authorities of the Government before he decides to invest or sign the agreement. ISO 9000+ certified companies usually offer good quality services and products. Check if the builder's firm is an ISO certified company. Ensure that the builder gives you a guarantee for at least a couple of years against construction defects.
Compensation: At time there are situations in which a project is delayed. Often this will be due to factors that are beyond control for all including the builder, but often, this is not the case.
Real estate is a highly regulated sector and with a production cycle of five years from land acquisition to the project delivery, these delays are at times uncontrollable. However if the delay is from the builders end then he must pay compensation for delayed possession which must be mentioned in the agreement.
This is a laundry list of checks one must make before finalizing projects. Try making a list of the top five builders in the city, their contact information and list their completed projects, ongoing projects etc. The list can also be made post speaking with banks or credible lending institutions because banks approve home loans of only certain builders.
Once you have a list of builders, do not hesitate in approaching their office for further clarification of doubts. Often the biggest builders are also the most consumer savvy. Last but not the least, do a final check on the financial health of the builder, this will give you some indication of how soon projects are likely to be completed.
A builder brings credibility and reputation to the project. Choosing the right builder is vital here are some tips that will help you choose the right builder.
Word of mouth: This is the easiest way to get details and knowhow about the reputation of a builder. If any builder has recently done some work for your colleagues, family friends etc then they will surely be in a position to share their experiences with you. This is absolutely unbiased information that no broker can give you.
Reputation and background check: It's imperative to conduct a check on the background and reputation of the builder. A buyer can get a list of builders from websites or the local newspaper. A detailed research on projects that the builder has completed should also be verified, the best source for this are the residents that are already residing in projects that are past the stage of possession. A list of ongoing projects and future projects should also be prepared.
Project quality: It is very important to check the quality of the projects the builder has built in the past. This gives the buyer a clear understanding of the standard of the builder, the kind of materials he uses, the quality standards etc. Again, your best bet is residents provided there are some mature projects in the builder's kitty.
Builders Association with different organizing bodies: It helps if the builder is associated with respected trade organization or Builders associations, call it peer pressure. There are many such organizations or associations such as Builders Association of India (BAI), Confederation of Real Estate Developers Association of India (CREDAI)...etc which provides an ethical code of conduct which is mandatory to follow for all the member builders and developers. It lays down certain rules that need to be followed by all builders or members and any one who defaults or violates the rules are listed in list of blacklisted companies.
Blueprint and Plan: The buyer must ensure that the project has been fully approved by the concerned authorities of the Government before he decides to invest or sign the agreement. ISO 9000+ certified companies usually offer good quality services and products. Check if the builder's firm is an ISO certified company. Ensure that the builder gives you a guarantee for at least a couple of years against construction defects.
Compensation: At time there are situations in which a project is delayed. Often this will be due to factors that are beyond control for all including the builder, but often, this is not the case.
Real estate is a highly regulated sector and with a production cycle of five years from land acquisition to the project delivery, these delays are at times uncontrollable. However if the delay is from the builders end then he must pay compensation for delayed possession which must be mentioned in the agreement.
This is a laundry list of checks one must make before finalizing projects. Try making a list of the top five builders in the city, their contact information and list their completed projects, ongoing projects etc. The list can also be made post speaking with banks or credible lending institutions because banks approve home loans of only certain builders.
Once you have a list of builders, do not hesitate in approaching their office for further clarification of doubts. Often the biggest builders are also the most consumer savvy. Last but not the least, do a final check on the financial health of the builder, this will give you some indication of how soon projects are likely to be completed.
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