Witḥ the introduction of various schemes by the government such as the PMAY, RERA and the tax benefits on home loans, there has been a tremendous increase in home buyers over the last 2 years; so much so that the number of buyers has doubled. This has resulted in a number of developers dotting the city with apartments and villas. Most of the traffic for real estate in Chennai is seen in the affordable housing sector. RERA (Real Estate Regulation Act) came into action on the 1 May of 2017. This act changed people’s perception and convinced them into buying more. The builder that abides by RERA is supposed to be transparent. If there is a certain timeline set for the project, it should be followed through, or the developers would have to pay a penalty to the customers, according to RERA. In Chennai, most reputed builders get their projects RERA approved.
The other factor that drove sales is the PMAY (Pradhan Mantri Awas Yojana) scheme that helps first time home buyers get their own home. It is a credit linked subsidy program that was introduced by the government intended towards providing housing for all. Though there is a visible increase in the number of buyers, the number of developers have also doubled. It is confusing for a buyer to validate the developers. Home is the biggest investment that some would make in a lifetime. So, who is the right builder for you? How to choose a builder? Here are some steps that would give you some insight as to whom you should be choosing.
#1. Check the builder’s reputation
The first step after deciding to buy a home is to locate the area in which you would like to purchase. This depends upon the priority of the buyer. Once the location is decided we start enquiring about the different developers in the area. Most of the time all developers look alike, only a few differences might make a particular developer stand out. You should start your research by checking the builder’s reputation. Most of us check online to know as much as we can. Look for specific information like the number of projects they have completed over a period of time. This would help you evaluate the time frame within which each project was handed over. Also, look for any joint ventures relating to the builder or relating to the project you are interested in. If the project is a joint venture then do extended research on the other company as well. If you are looking at a not-so-well-known builder with a sturdy project, make sure you get on your feet and get suggestions from various offline sources.
#2. Look for certain memberships & certifications
You should know that there are certain certifications that accredit the developer. The CREDAI (Confederation of Real Estate Developers’ Association of India) is the pinnacle for any private real estate builder in India. It is a guiding body that aims at bringing more transparency and customer satisfaction. It consists of 11500 members. If the builder on your mind is CREDAI member then it is more likely that he would be true to his words. BAI (Builders Association of India) is another independent body that helps set a certain standard for its members. You could also look if the builder you are looking at, is a member of the BAI. CARE (Real estate star rating) rating & Crisil ratings are some of the real restate ratings that are based on accurate research. These are some of the external certifications and membership that would give credit to the builder.
#3. Company’s track record
‘What you see might not be true’. It is important for you to take a long hard look at the company’s track record. The time taken to deliver the product plays a major role in establishing the credibility of the developer. Check if the timeline that was set for the previous products were carried out as projected. Check with the previous buyers. Yes, this is one of the easiest ways to find out the entire approach of the developer. Ask them about the timeline in which the handover was carried out, whether the projected amenities were given without compromises, what are the minuses in buying with the developer. You could contact a mutual friend or go directly to the previous projects of the developers to get a first-hand experience. You could also get hold of a local broker who would be aware of all the projects in the area and would be able to give you inside knowledge.
#4. Company’s Financial conditions
It is a must to check whether the company is involved in any financial or legal litigation. Look online for any news articles regarding a legal or financial scandal. Check with the developer itself. This is the best way to clarify any doubts that you would face. If the developer’s explanation is not good enough then cross-check with a different source. You could also check with the Registrars of Company (ROC) office. They would be able to give you a clearer picture. Ask to take a look at the balance sheets and the investor statements. The more the investment the more the cash inflow leading to the proper delivery of the product.
#5. Ongoing projects and, it’s quality
If everything else checks out then the only thing that you should focus on is the status, and the day to day updates on the project you have chosen. Go and visit the site multiple times. You would get a closer look at the raw materials used. Do a check from your side as to the value of the materials that are used. Also, interact with the people on the site and ask questions. Expect confident answers as you wouldn’t be getting one if the builder is trying to hide something.
Your most expensive purchase in a lifetime might be your home. Even though some of the checking and rechecking might be tiring, it is a prudent effort. These tips might help you land on a developer who would be able to deliver the home you expect.