Rapid developments, Growing population, Urbanisation and Vast Employment Opportunities lead to a huge migration from small towns to big cities leading to very less open spaces left in the cities for the dwelling. Hence, the numbers of Real Estate Companies have been growing at alarming rate for making different types of affordable and luxurious homes of Ultra Modern Amenities of various basic and unique features keeping in mind the aspirations, requirements of the Buyers to make them more stylish, attractive and appealing to the eyes. Investing in a home is a big, bold decision that involves life time savings and investments. Thus, need serious thinking. Usually huge competitions among the various realtors to increase in number of their sales and achieve big figures of their targets they resort to luring Buyers with many free gifts, offers, discounts and thus, successful in duping the Buyers resorting them to make wrong selection of flat which is an irreparable loss of time, money and energy because of the ignorance of the buyers and the mistakes they do while selecting a flat. These common mistakes which Buyers used to do while making selection of their flats as mentioned below :
1. Non-Budgeting and Not Enlisting the help of Professionals: While making a mind to own a flat buyer should always take advice of some professionals who has complete knowledge to guide about how to go about the process of buying the right type of flat with his right budget, requirements, location and the real estate developer to whom customer has to buy. There are local government bodies authorized to approve maps of any building. Buyers must check the approvals before entering into agreement or contract. Usually, some customers did a mistake of not taking the help of professional and are not able to do budgeting that suits them leading to wrong selection causing irreparable loss of money, time and energy.
2. Lack of Research and Preparation about the property: The Customers should do the Research of the market regarding the market value of the flat and do check as many properties as possible and document all relevant features of each and every properties to be researched, which helps you to save several thousands of their rupees and help them to negotiate with the seller. Always, customer has to make an estimation of owning the house till he moves in. Including expenses on Pre-EMI, charges to consultants, interior decoration, expenses of wardrobes, kitchen cabinets, maintenance charges, sinking funds, taxes, registration charges, stamp duty, legal charges etc from the various developers while doing the survey so as to make a mind to buy a right property.
3. Extending on their budget: Normally the customers are lured by freebies and decoration of the Sample flat and with the fear of losing the opportunity to buy one, Customers extend their budget without making fore- thought about their monthly income, expenses and some savings to be kept safe for meeting the good and bad life circumstances. Usually, customers look at the top end of their affordable monthly payment rather than thinking about what happens if their income goes down or they have to change their job. The customer has to get their budget preapproved for a mortgage which helps both the realtor and customer in deciding the upper limit and thus saving money. Also customer should take an estimate of owing a flat till he moves in regarding the expanses, Pre-EMI, charges to consultants, interior decoration, expanses of wardrobes, kitchen cabinets, maintenance charges, sinking funds, taxes, registration charges, stamp duty, legal charges etc.
4. Not Checking Builder Reputation: Before making selection of flat customer should check their references and acquaintances regarding the knowledge of various real estate developers booming in the surroundings areas and also gather information about the history of the earlier projects delivered by that particular Real Estate Developer and also do visit personally and interact with previous and existing customers within the premises of the property looking for so as to get an idea about their experiences of living in that project and what if all the promises and amenities promised by the builders are fulfilled or not. Also customer should check the legal aspects of developer by verbally verifying the builder about handover, availability of documents to the title of the property, specification of construction and status of land.
5. Not Reading the Purchase agreement before buying a home: Buyers should read the Purchase Agreement involving various documents before buying a flat so as to avoid fraud forgery and should be aware that the flat has all the requisites clearances. Normally due to the greed of freebies, discounts offered by the Real Estate Developers and pleasing nature of presenting a good image of their projects by showing the Sample Flat . Buyers get easily caught in the trap of Real Estate Companies leading to wrong selection of a flat.
6. Early payment of token money: Buyers should always get their home loan approved before hand and also wait till the time same got finally approved or not be approved. After getting approval of home loan from bank buyers should give the token money otherwise they will get caught in legal cases and will have to lose the said flat. Usually, due to freebies and discounts buyers are lured to attractive flats and fear of might losing it tends to do the payment via token money and result in failure to get both the flat as well as their token money.
7. Buying a house without forethought in localities that faces problems: Buying a flat is a big lifetime decision which needs to be done seriously considering all the factors of the basic requirements like water, electricity, shopping complex, Infrastructure and proximity to various places of convenience of school, hospital and bus stand. Buyers without serious foresight opt for flat in such a locality that faces problems like electricity shortage, water crisis and lack of infrastructure.
8. Not Discussing with the Builder on fixed and variable costs: The Number of growing real estate companies lead to further increase in competition at an alarming rate and in order to meet the competition and to achieve their desired target. Builders usually give discounts on booking amounts and also negotiate with a high margin with Buyers to make purchases early without discussing the other maintenance charges that are levied after the possession and allotment of the flat.
9. Ignorance of super built-up versus carpet area: The Customer should always check the builder whether same has quoted a rate on the basis of carpet area. The properties whose prices are based on the super-built up area always cost more than those of carpet area.