Steps to buy property

A typical home search will start from searching all the newspaper advertisements, top developer sites, real estate sites and so on. A tough task, especially more when you are a first-time buyer. Moreover, if you find a perfect house all by your own (suiting your budget) then getting loan approval from the bank or a financing firm is not that easy a task. Before approving your loan these institutes will do their own search work, meaning you have to wait more. And unfortunately, if they find any problem with your papers, then your loan won’t get the approval. In that case, an easy way would be approaching the bank of the HFC from where you plan to take the home loan. Most of them have a list of pre-approved properties. If you choose from that list, the loan approval procedure will be faster. The only concern – property would typically cost a little more.

Payment mode:

Buyers usually have 2 modes of payment to choose from – a lump sum upfront payment and second one that is construction-linked. In the first mode (lump sum), the buyer has to pay almost 95% of the cost of the unit upfront. If the developer gets the upfront funds, he will offer you a discount of 5-10% also. But if the project is held-up due to some reason, then you won’t be able to do anything about it.

As for construction-linked payment plan, if a project runs into rough weather, the burnt will be lesser for you.

Developer agreement:

Have you ever read the developer’s agreement? If yes, then you must be aware that the agreement is heavily loaded against the buyer. To turn it more in your favor, all you can do is to ensure that an exit clause and the approved building plan are made part of the developer’s agreement.

Property dealers:

Property dealers can be very much assertive sometimes. But as a buyer, you have to take stand for that. Always double check whatever the dealer says. Meet up those people who have already bought projects with this dealer and try to get their reviews for the same.
Furthermore, always settle down for a fair value while buying the property. You will always find some space for the negotiations on the quoted price. And lastly, do not forget to get an idea of the paperwork and other important documentation from a person who has already gone through property buying process.