10 Things You Must Know Before Choosing A Builder

Choosing right builder is vital for investing your lifetime earning in secured place. List of Top Builders in India are easily available from online directories or local newspaper. The roles of builders or developers are highly noteworthy in making real estate a booming industry. With increase in demand for residential properties in the city, fraud or unfair trade practices of the real estate developers are also increasing. According to source, 8 out of every ten property buyers in India are sulking with the unfair trade practices and one in three, have either filed a case in consumer court or are planning to do so against the developer.

Things you must know before choosing a builder

There are number of builders in city which often confuse buyers from where to buy property. Whether you are a first time property buyer or an expert in real estate investment, choosing right builder can save you from unfair trade practices and saves from delayed possession. Following are some important things you must know before you choose a builder.

• Type of property: You don’t want to invest in a property that will ruin your finances. Everyone has different dreams and different plans for properties that they ultimately decide to invest in and buy. There are different types of properties such as individual home, apartments, villa, row house etc. There are also different types of projects such as affordable home, luxury projects, semi-luxury etc. Some projects may be launched in posh areas of the city and some in suburbs of the city. Therefore, before choosing a builder and his projects, you must make a list of your needs and type of property you are planning to buy. This will help you set criteria for property hunt.

• Budget: A builder or developer would be dealing with different type of projects at a time. Knowing your budget helps you to choose property that meets your budget. After adding up all the monthly income and subtracting any ongoing debts, a property buyer can have an approximate idea of how much he/she can afford to spend on the costs of housing on a monthly basis. You should definitely prioritize your wants and needs, so that you know exactly what you want and how to get it.

• Right Community: Those who have young children or those who are aged and living alone might opt for a gated community where a certain amount of security is ensured. Those who have a more affluent and relaxed lifestyle might think that a townhouse or a villa suits them best. The needs are many and when one goes to buy residential property one chooses a home that suits his individual requirements and reflects ones personality and style of living. The community in which your home is built should suit your lifestyle and requirements.

• Resale value: There may come a point when you have to sell the house for reasons that you have to relocate or you get a good raise and want to buy a bigger house. Choose a home that is in a location that others may want too. Know the primary home buyers in your area and the features that are in demand. Don’t make your home so custom that you create barriers for future sales.

• Builder’s reputation: Real estate is booming and there is an increase in number of builders or developers in the city. Make good research on your builder and his previous projects before you decide to buy. If you are new to real estate business or if you are not sure of how to go about things for investing or property buying, you need to seek expert’s advice. Visit the buildings or projects they have completed and get customers response about the builder. ISO 9000+ certified companies usually offer good quality services and products. Check if your builder’s firm is an ISO certified company.

• Builder Association: Builders and developers form an association or organization to establish healthy and cordial relationship between the client, the contractor and the end-users, so that all Construction projects are completed without any time and cost over-runs.  The association would have code of conduct for its members. If any member is found to violate the code, the association would add such builders in blacklist or terminate the membership of the member. Before choosing a builder, ensure the builder or developer is member of builders’ association. There are many such organizations or associations such as Builders Association of India (BAI), Confederation of Real Estate Developers Association of India (CREDAI)…etc which provides an ethical code of conduct which is mandatory to follow for all the member builders and developers.

• Compensation clause: Builders have an agreement clause that assures buyers a daily damage for delayed possession, but few buyers, if any, invoke it. It is a rare case in which damages per day were claimed, and given. Ensure your builder is ready to pay compensation, if the project is delayed.

• Opt out of housing project: According to National Consumer Commission, a buyer is entitled to opt out of a housing project if there is a delay in delivery of possession of the house by the real-estate developer. The buyer is also entitled to a full refund with reasonable interest and any deduction on the amount is unjustified.

• Background Check: Builders background check is vital, even the best builders can make mistakes. Ensure your builder has history of successful projects in your city. Check builders reputation, copies of sanctioned plan for the work, ask your friends and family for references. Feel free to ask more questions and ask examples of their work. Make research on projects they have completed, ongoing projects and future projects.

• Handling Customer Complaints: Effective complaint handling is a powerful tool and sign of better customer service, negotiation skills, effective communication or conflict management. According to source, 8 out of every ten property buyers in India are sulking with the unfair trade practices. Check how quickly builders handle customer complaints and how satisfied are their customers.

Whether you are a first time property buyer or buying an investment property, you need to know about your builder whom you are dealing with. Before choosing a builder, make list of builders for investing and eliminate one by one by filtering them such as top ten builders, top five builders, top three builders etc. Choose three builders whom you feel best and right builder for you to deal with. Ask them as many questions as possible about your property planning to buy, their previous projects, ongoing projects etc. Ensure you are dealing with a dealer who is member of builders association or organization which has code of conduct to establish healthy and cordial relationship.