Home buyers are always looking for the best deal they can find with the time and resources available with them. Real estate prices are now subdued more than ever and there's a good number of active buyers in the market.
Buying a home is the most exciting yet tedious task. While the excitement of owning your own house pushes you harder to expedite the process, the task of going through an enormous amount of details may be frustrating.
Going through the process is a must even though the process is tiring and quite demanding. Any negligence can cost you big in the future.
Let's take a look at a few options that home buyers have and how they can choose the one that suits them the best based on their requirements.
Buying an under-construction home
This is one of the most popular ways of buying a home. A builder announces a new housing complex through newspapers, TV, or other media. Agents start going around the market, companies, malls, as well as homes to spread a word about the same. The goal of the builder is to sell as many houses as possible before the housing complex is built. It is known for a fact that more than 75 per cent of flats built by known builders are booked even before a single brick is laid.
A few important things to remember
Buyers should always check the history of the builder selected by them. If a builder has done great in the past, there is a good chance that he will be able to deliver the same. Hence, the track record of a builder is paramount.
Buyers should clarify loan tenure and how the money will be released to the builder.
Buying a ready-to-move home
Since the economic slowdown in 2008, there have been many cases where builders could not complete the promised housing projects and buyers had to wait helplessly.
Well constructed? - The biggest negative that comes with a ready-to-move home is that you have no idea of how well it has been constructed- in terms of materials used, in terms of strength of its foundation and so on. Given a shabby maintenance, the house can start to look old in no time!
Ready-to-move homes are generally more expensive but do not take this as it is. Do a thorough research. You can begin by speaking with a few people in the locality to get an idea of the desired property's fair value.
From the last few months, many new companies have encouraged home buyers to form a group and increase their bargaining power. Once a group is fairly big, group buying companies negotiate with builders on their behalf and easily attract extra discounts. Essentially these companies act as mediators between builders and buyers. For builders, giving extra discounts is not a problem because they are saving big in advertisement and sales force.
Group buying empowers home buyers to negotiate better with the builder. Buyers can get better discounts in group buying than they can get individually. In group buying, an individual buyer doesn't make much difference and hence group interest takes priority over individual's choice.
A few points to remember
The buyer should study the documents carefully. Do not assume that someone else must be reading these documents.
Group buying takes time and hence you have to be patient about cracking a deal for yourself out of it. A group buying company has to build the group and negotiate the price with the builder for additional discounts. This is a long process.
Finally, what should you choose?
Your choice should depend upon your financial condition, timing, and your choice of location as location is the most important factor in real estate.
If you are ready to wait, can take medium to high risk, and do not care much for location, you can go for booking an under-construction home. You can even go for group booking if your requirement is to stay with people of your social standing.
If you cannot wait and cannot take high risks associated with under-construction homes and need to be near amenities of your choice, you may consider looking for a ready-to-move home or may even go for the group buying option.
Disclaimer: BankBazaar.com is an online loan marketplace. All information in this article has been provided by BankBazaar.com and NDTV Profit is not responsible for the accuracy and completeness of the same.