Judging by the sky rocketing property prices in India, especially here in Mumbai and the other metros, it’s no doubt that the Real Estate Business is growing tremendously. You’ve probably heard about the “Get Home Now” Sale by IndiaProperty.com… it ended a few days ago and was marketed as the biggest Property Sale in India.
Who doesn’t love a sale? I know I do. In fact, the only thing better than a sale is a freebie 😛
But man, these “blink-and-you-miss-it” sales understand us Indians. Most of us will queue up to buy clothes, electronics, tickets and cars with little or no research – at the risk of losing out on a once in a lifetime deal.
Although the prices for both, commercial and residential properties have shot up in the recent past, commercial property prices are on the rise even further because there are not many new projects being launched. However, on the residential front, developers are yet to do away with existing supply. There are very few buyers and a lot of property to be sold.
Every year, we have a good deal of new property websites springing up which help people buy, rent and sell. It’s a mystery as to which one is the best: Commonfloor.com, Housing.com, 99acres, Magic Bricks, Makaan, Indiaproperty… and the latest one – Look Up Housing! (Whoever photo-shopped this has a sense of humour!)
So the IndiaProperty.com sale that took place offered exciting deals and exclusive discounts on 200+ projects in the country. As tempting as that may sound, there are a few things to consider before you dream of laying out that welcome mat.
Not many buyers are aware of the “Ready Reckoner”- a price fixed by the government for properties in a particular area. This price is the base, below which no property can be valued. Developers can quote over and above this rate, leaving room for their profit margin, as well as scope for buyer’s negotiation. When one buys online, is negotiation possible? No. This is one crucial benefit that buyers do not have and only those who talk to the developer personally can bargain and avail of the discounted rate. And since developers are looking to get rid of their stock, one can REALLY bargain and get a better deal.
Secondly, a developer may choose to provide amenities or perks to certain apartments – like a modular kitchen, lighting or free car parking. Out of the dozens or perhaps hundreds of apartments, the developer may allocate a handful to online portals to sell at a discounted price. The apartments registered online may or may not have the amenities provided by the developer in the other apartments that are sold offline. It’s always better to check with the developer and find out for yourself.
Lastly, what happens in case the project is not completed on time? The website doesn’t have control over the developer and the delivery of the project.The developer collects funds from bank and investment companies according to the government regulations. So in case you buy online, and the project is stalled or not completed, one can ask for a refund or choose to wait. However, one has to factor in the additional interest and costs in case of delayed possession.
Although the benefits of e-commerce are many, it is advisable that buyers do not get carried away with lucrative offers when it comes to property, and carry out their due diligence with the builder. For information on how to rent a home in Goa and to read about a beautiful restaurant in a 100-year old villa, check out some of my earlier posts.
See ya next time!