The current real estate scenario wears a very suspicious look. Most of the long time players have failed to win customer confidence by virtue of ever-degrading quality and lack of transparency. It is however worth mentioning that very few builders still continue to rule the hearts of end users and investors alike due to consistent quality and services on offer.
But with most of the real estate promoters seen as unprincipled, skepticism among buyers is high.
It is due to this generally unscrupulous attitude of builders that the new entrants (promoters) who might otherwise provide a reasonably good and cheaper alternate, are also suffering due to lack of sales.
Lot of new builders/promoters have flooded the market of late. Buyers are tempted to buy in such new projects but are uncertain about the project’s future considering the overall situation.
We have had many queries regarding buyers looking for investment in such new promoter’s projects.
We bring to you a short checklist that could help you ascertain the credential of new entrants in the real estate field before you invest:
1) Check owner’s profile. What has been his past is critical. People with good background are more likely to do well during their first venture at least.
2) Check Owner’s financial condition. Is there any equity investment in the project? Equity investment goes to show corporate faith in the promoter.
3) Check floor and layout plan. If builder has disclosed carpet area clearly, it is more likely to stick to the same.
4) Check specifications. If specifications are not open ended and lists down the selected brand (does not keep it open ended by using words like premium brand or standard or equivalent), it is more likely to stick to the same.
5) Ask builder for all approvals. A builder who shares approvals upfront on request is more likely to be transparent in comparison to someone who doesn’t (or in comparison to someone who gives excuses).
6) Ask for copy of BBA. Generally BBAs are on sided. But, for a builder who wants to win hearts, the BBAs could have some brownie points in favor of buyers.
7) Also Check project approvals through RTI before entering the project. Also check if there are any pending petitions filed for jurisdiction in court for the land in question.
Of late, Sunshine as a NCR builder has impressed quite a few in the industry. They initially began with a very transparent approach and have/had been very communicative with their customers. However, a marginal super area increase at the time of possession was a dampener.
Last updated: April 14, 2015 at 16:31 pm