Buyer Guide: What to Buy? Established or Small-scale Builders?

The real estate market has a plethora of developers – new as well as established – making an array of offerings in a bid to expand their clientele. Every developer, irrespective of the company’s brand equity, carry distinct advantages and drawbacks. Therefore, in order to make an informed home buying choice, a prospective buyer must weigh the pros and cons while selecting a real estate titan or a new entrant in the builder fraternity.

Here are a few points that you must keep in mind when deciding on a developer:

 RERA Certification: The most reliable and cut and dried measure of credibility is a RERA certificate. All real estate developers are mandated to register under their respective State’s regulatory authority. By purchasing in a project by a RERA-registered developer, you can safeguard your investment in the event of delayed possession, incomplete project or faulty or substandard construction.

 Credibility: One of the key advantages of buying a property from a reputed developer is the credibility the firm enjoys. A developer with a track record of 20-30 years and an established brand name is expected to be more reliable than a new player in the market. This, of course, does not mean that lesser known developers or the new players would engage in fraudulence; however, you must be more vigilant when investing with a newbie.

 Price points: A brand name always comes at a premium. Thus, buying a property from a developer of repute would prove more expensive than that from a new developer or a lesser-known one.

 Construction quality and amenities: Luxurious real estate projects usually offer additional amenities and boast of better quality construction and interiors than those offered by the newbies in the market. Furthermore, established developers may offer warranties for the interior fixtures. Therefore, the choice is between cost and additional features while selecting a developer.

 Better maintenance and upkeep of property: Projects by established developers are usually well maintained due to their experience in servicing their clients subsequent to the delivery of a project. From the onset of construction till the time of handover to the housing society, the developer maintains the amenities as his reputation is at stake. Some developers go beyond this and help Residents Welfare Associations (RWAs) maintain various aspects of the project including club house, golf course, swimming pool, kids’ play area and others. Thus, to prevent investing in a project which is not maintained post-delivery, it is crucial to investigate the builder’s track record.

 Higher resale values and wider buyer base: In a recessive real estate market, both new and small developers might face difficulties selling their projects. However, established developers continue to garner transaction on the basis of their market reputation even during a slump and their projects usually have a higher re-sale value. In addition to this, investors usually trust a renowned developer when it comes to under-construction projects. Some seasoned investors who know the market well are, however, equipped to take risks with new developers as well.

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