The real estate market in India is showing signs of a slowdown, with sales in top cities witnessing a decline. According to recent data, the sale of residential properties in major cities has dropped by 8% in the first five months of the financial year, and house sales in seven major cities fell by 11% from July to September. This could make it a favorable time for potential buyers to enter the market.
If you’re planning to buy a property, it’s crucial to keep a few key points in mind to avoid making a costly mistake. Whether you’re a first-time buyer or an experienced investor, these 10 tips will help guide you through the process.
1. Avoid Agents, Save on Commission
Many buyers purchase homes through real estate agents who typically charge a commission of 1-1.5%. Some agents also take commissions from the seller, which can ultimately raise the cost for the buyer. To avoid this, try to buy directly from the developer or seller. Eliminating the middleman can help save you from paying a commission of up to 3%.
2. Leverage Your Network
Instead of relying solely on agents, ask friends or neighbors who have recently purchased homes. They can provide information about available properties and help you make direct contact with homeowners. This method can often lead to better deals, as sellers may be more flexible in price when approached directly.
3. Stick to Your Budget
One of the most important steps in buying property is setting a clear budget. Overstretching your finances can lead to future burdens. Consider how much space you need, whether you want a flat or an independent house, and ensure that your purchase fits within your financial limits.
4. Group Buying for Discounts
If you can find 2-4 other buyers interested in purchasing homes in the same project, you may be able to negotiate additional discounts with the developer. Developers are often willing to offer incentives to groups since it helps them sell multiple units at once.
5. Take Advantage of Festive Offers
During the festive season, many developers and sellers offer special discounts and deals. If your home-buying timeline aligns with a festival, you could benefit from reduced prices or extra perks like waived fees or upgrades.
6. Ensure All Legal Permissions are in Place
When buying property in a housing project, it’s essential to verify that the developer has secured all the necessary legal approvals. This includes checking whether the land title is clear, and all required construction permissions have been granted. Skipping this step can lead to future legal complications.
7. Research Market Prices
Before making an offer, do thorough research on property rates in the area where you’re looking to buy. Speak to local residents and check online listings to get a sense of the average price. Armed with this information, you’ll be in a better position to negotiate with the developer or seller and ensure you’re getting a fair deal.
8. Consider Under-Construction Homes for Better Deals
While ready-to-move-in homes are often more convenient, they tend to be more expensive. If you’re not in a rush, opting for an under-construction property can save you a significant amount of money. Developers frequently offer substantial discounts on homes that are still being built to attract buyers early in the process.
9. Maximize Cash Payments for Better Discounts
Developers are often willing to offer a lower price if you make a substantial cash payment upfront. This reduces their risk and secures immediate funds for the project. If possible, aim to pay as much as you can in cash to take advantage of this opportunity for a larger discount.
10. Compare Home Loan Offers
Not all home loans are created equal. Before committing to a loan, compare interest rates and offers from multiple banks. Look for the most competitive rates and favorable terms. Even a slight difference in interest rates can save you a significant amount over the lifetime of your loan.
Following these tips will help you make a well-informed decision when buying property, ensuring that you get the best possible deal and avoid unnecessary losses. Keep these points in mind, and you’ll be well on your way to becoming a smart property owner in today’s fluctuating market.
