Recently a friend of mine wanted to buy a property, but there were so many aspects to look into before investing he asked for my help. So I prepared a 5 point checklist that is essential while selecting a builder in whom you want to invest.
1. Check with the local Industry association
It is essential that the builder belongs to any one builder’s association like Confederation of Real Estate Developer’s Association of India (CREDAI) or the Builder’s Association of India (BAI).
The members of these associations have to abide by certain rules and regulations. Any builder or developer who fails to comply is usually blacklisted.
So if you are interested in knowing about a builder, contacting any of these associations would give you a good idea.
2. Review project turnaround time
A major concern for any property investor is usually the delay in completion or sometimes the project gets abandoned. So make sure you check for track record of project delivery.
Visit previous projects to get feedback from customers directly. This will also give you an opportunity to check the quality & delivery time.
3. Inquire, inquire, inquire
This is the time when you need to exhaust all your options of enquiry, from friends, relatives, colleagues to neighbors or even fellow investors.
The Internet has a huge role to play here with its immense resources. Visit as many property related forums as you can and ask if anyone has had any experience with the builder you have chosen.
4. Make sure you check with the Banks & Home Finance Institutions
A Financial Institution will only fund a project which has proper approvals from government planning authorities.
If Home loan on the property is available, you can rest assured that it will be safe to invest with them.
5. Check if builder provides compensation for project delay
This is a very important point while checking about a builder; if a builder is giving compensation for project delay or has a clause mentioning it, it is good news. It means that the builder is serious about the project and is committed to completing it in time.
My friend has already embarked on his house hunting and he keeps this checklist handy. If you have any suggestions for him please feel free to write in.
Ramesh Kumar has extensive experience in real estate in a career spanning over a decade. With his critical expertise in sales and marketing, he has successfully launched and closed out projects across a complete spectrum of properties like plots, budget apartments, comfort homes as well as luxury villas.
Ramesh Kumar holds a Post Graduate Diploma in Management from Bombay University and is currently serving as the Deputy General Manager – Marketing & Sales at Vakil Housing.