Blog

How to Evaluate A Real Estate Developer?

Buying a home is an extremely important life decision, because you end up spending almost each and every penny you would have saved in your life. So you cannot afford to be rash and reckless while making the deal. While researching for your home, you must have realized that there are a lot of developers building various kinds of housing projects. And this is where things get confusing. Every real estate builder will try to convince you that he is the best of the lot, and in the end you will end up feeling perplexed because you will not have anything definite in hand. But there are certain tips and tricks that will help you finding the right real estate developer who will give you a good deal worth the money you are wiling to put in.

All you need to do is follow the below mentioned steps:

Background check

Do an extensive background check of the developer, because as a customer it is very important for you to know what projects he has completed before and how many of them have been delivered satisfactorily? It is necessary that the developer should be well-known in the real estate market and not someone who is a newbie. Well known developers care for their goodwill and reputation and hence the chances that they will dupe you are considerably less.

However, we are not saying that it is wrong to trust a new developer, because going with new developers can also be advantageous. Sometimes new developers will get you a good deal at a lower price, but this association more often than not is purely based on trust and your own assessment, because it is very difficult to do a background check of someone who is new in this market and has absolutely no projects in his name.

Legal opinion

Now this is a very important point to keep in mind. Always consult a lawyer to find out whether the project you are planning to invest in has all the necessary documents in place or not. Check all the documents related to the project, such as papers related to land acquisition, bank loan, building approvals etc. It is extremely important to get an expert legal advice before investing into any project, because obviously you won’t want your hard earned money to go in the hands of a fraudster. Ask Us Your Queries

Finances

It’s important for the customer to check about the financial standing of the developer before investing. It is easy to access a developer based on his finances. He should have his own funds that are not directly affected by the sentiments of the market, as good times last lesser than the bad times in market. A developer can be ranked successful or unsuccessful based on his management or finances that he has. You should push for project completion as and when the project is delivered. Generally rates of unsold inventory go up and depleted funds can be recovered. Know Everything About The Property You Want to Buy

Quality

It is very important to assess the quality and location of the project, because a builder who is using good, durable material will charge more than the one using average materials. And prices also vary as per the location. So a property at a good location, with good connectivity and security will come at a higher price compared to a property that does not have the above features. Also buying a property at a developed area is more expensive than buying one in an upcoming area.

Reviews

There are some websites that will help you in evaluating your developer because they compare developers and assess them on the basis of price, quality and performance in the real estate market. You should not rely solely on these websites but they can give you some idea about the developer in whose project you are planning to invest. Since most of the reviews here are given by users, it is always a good idea to go through them before investing. Visit CommonFloor to Compare Developers

Loading Comments...

Connect with Us

Subscribe to Blog

  • Get latest real estate updates delivered to your inbox.