Buyer Beware : 10 Risks Of Purchasing A Home

Buyer Beware : With the Dussehra festival approaching, developers are enticing buyers with various discounts and offers. However, the final purchase decision should be guided by professional advice rather than impulse. Enticing offers for a limited time may compel you to close the deal quickly, but it could be a trap. Thus, navimumbaihouses discusses ten common vices associated with home buying and how to avoid them.

The start of the holiday season sends shoppers on a shopping spree. People look forward to this time of year to make large purchases, such as furniture or gold, or to invest in real estate, because sellers flood the market with enticing offers and rebates.

To attract customers, real estate developers offer a variety of payment plans, price reductions, and freebies. However, be cautious because these appealing schemes may be disguise as something that the developer is trying to conceal in order to sell the stock in the market. In fact, many property buyers make common mistakes when looking for a home and later regret it. This frightens many prospective homebuyers in the market, who continue to postpone their purchases due to the risks involved in the procedure.

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Buyer Beware : Inadequate market research

People frequently go out into the market to purchase a property without understanding the dynamics of the real estate sector. The ‘ask’ or ‘buy’ rate of a real estate property is determine by a variety of market conditions, such as circle rates, guidance values, builder equity, infrastructure quality, property age, and livability index, among others. As a result, it is prudent to develop a market checklist to avoid the risk of entering into a bad deal. Conduct extensive research on the various aspects of home buying.


Not conducting a financial analysis

Buying a home requires a large investment, so taking out a home loan is the most common option for buyers. All prospective homebuyers should be aware that banks or other financial institutions grant home loans based on a variety of factors, including your income and credit score. Banks typically lend up to 80% of the total value of the property. The remaining amount, at least 20%, must be paid by the buyer. Without first analysing your finances and monetary liabilities, your dream of purchasing a home will become a nightmare. Before you decide to buy a house, determine your EMI affordability.


Not seeking professional assistance

Another common mistake that homebuyers make when searching for their dream home is failing to seek professional advice. Many countries have dedicated real estate experts and consultants who assist homebuyers in securing the best deal for their budget and preferences. People in India typically seek advice from family members, which is often influence by prejudices and biases rather than actual facts.

Getting professional advice is always beneficial when it comes to closing a real estate transaction. Before making a final decision, you should consult with real estate agents and brokers to gain insight into the area as well as the builder’s market reputation. A broker can help you learn about all of the housing options that are within your budget without wasting time or effort. It is also critical to conduct an extensive online research on the location and builder. This is possible with online portals like navimumbaihouses, which also has a feature called verified listings.


Buyer Beware : Inadequate builder research

Not conducting builder research by visiting the developer’s completed projects or conducting online research can cost you a lot of money. Make certain of the builder’s market reputation. Check to see if the builder is a member of the Confederation of Real Estate Developers’ Associations of India (CREDAI) or is registere with the state’s Real Estate Regulatory Authority. This will give you access to the builder’s full profile, past delivery history, and the construction quality of existing projects.


Online payment to a broker/owner without visiting the actual site

A homebuyer should never make a deposit before learning about the builder’s reputation, project details, approvals. Certificates, and actual construction site. In the case of a resale property, it is critical to visit the actual location not once, but twice or three times before making any advance payment.


Not double-checking project approvals

A homebuyer must determine whether or not the housing project has received all necessary approvals from the relevant authorities. It has been reported that several developers put their projects up for sale without obtaining the necessary approvals. Resulting in delayed possession or, in the worst-case scenario, no delivery at all. To avoid this, only invest in RERA-approved projects. The Real Estate (Regulation and Development) Act (RERA) mandates that all developers of ongoing and new housing projects obtain all necessary certificates before registering their projects under the Act. Projects that have not been RERA-approve cannot be marketed or advertise for sale.


Buyer Beware : Inadequate bargaining

When purchasing a home, there is always room for negotiation. Because you are unaware of the current market rates. You may purchase an overpriced property, which will severely harm your finances. Conduct a thorough market analysis to determine the true value of your desired property. This will allow you to negotiate a lower price and save money. Be a wise buyer who negotiates well.


Not comparing mortgage rates

In India, home loans account for more than 60% of all home purchases. While all financial institutions provide home loans, the rates and terms may vary. As a result, it is advise to compare the interest rates on home loans offere by various banks and financial institutions. Even a small percentage difference can save you lakhs of rupees while repaying your loan.


Not accounting for overhead costs

When you buy a home, there are several hidden or overhead charges. Property registration fees, GST (on under-construction properties only), and stamp duty are all included. This should be done while you are learning about your finances. Be aware of the total cost of owning the property ahead of time.


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