Simple Ways to evaluate a Real estate developer

Investing in a dream home is a life-time decision cherished by all and sundry. Once a buyer has decided to invest in a dream home there are various aspects that he should consider before taking the plunge. Investment in a home involves taking some major decisions with regards to setting aside necessary funds as an initial investment as well as planning to make funds available in future in case the buyer avails a home loan. Another important decision that a buyer has to take is with regards to selecting the real estate developer and the residential project that fulfils his criteria for selecting a home of his choice.

Since there are a plethora of real estate developers coming up with various residential projects with different features and in different budget ranges, making an ideal choice involves some serious planning and weighing various options. For a buyer for whom the value of the project is of prime importance, it is all the more important that he makes the ideal choice by selecting a project that provides him good value for money. For this he needs to shortlist developers and their projects that he feels would be ideal for him in terms of his requirements. In this regard, it would be helpful for him if he prepares a checklist of different developers and their projects so that he can weigh the pros and cons and different developers and projects and come up with the one that suits his budget and residential requirements ideally.

Criteria for evaluation

The criteria for selecting the real estate developer of his choice should be taken based on various factors. Some of these include:

·  Checking the developer’s background information
This is one of the primary aspects that should be considered while selecting to buy a residential project. Ideally, the developer should be renowned and should have come up with other residential projects earlier, the background information of which can be verified. The name of the developer should be reputed in realty circles and should have been engaged in the business for a considerable time. For buyers not looking for the reputation of developers, the developer should have delivered at least one residential project on time and as per the specifications mentioned prior to starting the project. Even though opting for new developers involves a certain degree of risk, a thorough background check would reveal if the developer is trust-worthy or not.

·  Getting a legal opinion

With regards to verifying the authenticity of a particular residential project, it is advisable to get a legal opinion regarding the same. A legal expert will give insights into whether the project has all the required approvals in place. In this context, it is imperative to get beforehand all the documents relating to land acquisition of the project site, availability of bank loan for the project as well as building approvals. These documents can be got from the developer itself, which can then be verified through a legal expert. It should be verified if the land on which the project is being developed/already developed is owned by the developer, either independently or jointly, and if there are no legal issues associated with the land. It is also important to clarify if the project has approval for availing of home loans through all major banks. Moreover, it should also be ascertained if the project has the necessary building approvals from the concerned development authority.

·  Financial standing of the developer

It is also important to verify from reliable sources the financial standing of the developer. The financial standing of the developer can be understood based on the independent source of funds that he has. In case he has funded from external sources, the veracity of such funding should be ensured to ascertain that the developer has sufficient funds to cover the entire construction costs that the project requires.

·  Quality of construction

The quality of construction is of utmost importance when deciding upon a residential project. If the developer is a reputed one, there is no need to doubt the quality of the project as his very reputation rests on the quality of the project. Moreover, the quality of his previous projects should speak for themselves. However, if the developer is new or relatively new, it is important to ascertain that the construction materials used in the construction of the project are of good quality.