Steps to evaluate a Real Estate Property Developer
June 14th, 2018
There can be certain occasions in your life when someone says – ‘’This is where you need to be really careful and evaluate well’’. Home buying is one such occasion!
After all, buying a home is serious business and the decision involves a lot of money, thought process and evaluation. You do not want your money, saved over years of hard work, to be invested in the wrong place.
With the rapid spread of online media and promotions it gets even the more confusing for potential home buyers on who they should go with and what sort of project suits their requirements. It is also true that every developer claims his project to be the ‘perfect’ one suiting all the requirements. Luckily, there are some parameters on which you can evaluate developers and make your home buying decision easier.
Here are a few –
Developer’s background: It all starts here, before you plan anything to do with your property and the financing of it, go ahead and check the background of the developer. These days almost every developer has the money power to advertise and ‘create’ a positive impact on potential buyers’ mind. Do not be tempted by the hoardings, billboards and promotions that you see on different media. Rather, conduct a complete research on the developer and evaluate him on the previous projects. Past performance of a developer is perhaps the best parameter on which he can be rated. Check for the details on the previous projects such as – whether they were delivered on time, the quality of homes matched the promises made, if the homes were built to the exact specifications and if all amenities and facilities promised have been included.
Usually, established developers already have a brand name in the market and are well-known in the real estate circles and among buyers too and it is considered a safe bet going with them. But that does not mean non-established and non-branded developers cannot deliver.
Necessary approvals: The land on which the project is being built should have been legally cleared for the same and must have all the approvals in place. In fact, the developers should be able to produce all the necessary documents and approvals upon request for this will show his attitude towards taking up a project in the right spirit.
Another thing to be aware of is whether the developer is adhering to the norms of construction and is getting the project ahead in the required manner. For example, if the sanctioned height for the project is 10 stories, the developer better not go beyond that. Breaking of rules will cause harm to the buyers at a later stage and as a buyer you should be aware of that.
When it comes to approvals, it is better to take the legal opinion of an expert here, sometimes you could miss on one or two things that could change everything.
Financial Capacity: This is a difficult thing to assess but you should be aware if the developer is financially sound enough to go ahead and complete the project. Many a time, developers begin well and then get stuck mid-way due to lack of the required finance. This can get all buyers into trouble because neither will they be able to get their investment back nor will have their property ready in time. In fact, the financial stability of the developer is what defines his speed of project and the quality of the property. Again, past history helps you know enough about how a developer manages and completes the projects.
An important thing to consider is if the developer has and is using his own funds. In most cases when developers put their own money they are more committed and focussed on completion of the project. Remember, it isn’t the big-bang start of the project that matters, it is the smooth completion on time that actually does.
Quality of Construction: Well, ultimately everything boils down to the quality of the property. No point in purchasing a property that fails to live up to the desired quality standards. The developer must ensure the use of quality materials in the build up to completion of the project. Often times you would find differing property rates in the same locality and this is largely due to the higher quality of material used in construction. Of course, this is not a blind rule, but yes developers who charge a little higher tend to use better quality material. At the end, the entire exercise is about getting hold of a durable and long-standing property that can be used for generations.
Customer Reviews: Here is where you would get a much transparent view of what the developer is all about. Reviews of past customers help you really understand more about the developer than most other sources. These days, thanks to social media and internet that you have a direct access to reviews on developers at the click of a button. Also, if you can get hold of past customers it will give you a chance to interact directly and get to know more details on how the developer goes about the completion of project and what the customer service levels are.