Real Estate transactions are meant to be a win-win for the buyer and the seller (who is the builder). But in reality, it rarely happens that way. Home owners who are in a hurry to buy a property – or who are fixated on a particular property do not undertake a full due-diligence on the property, or the builder. And even if they do, they are willing to accommodate a few compromises along the way, which is where the trouble starts.
However, there are a few areas where a compromise is not required.
- Choice of Bank Loan: Do not be coerced into taking a loan from one or two banks recommended by the builder, and feel free to consider a bank of your choice.
- Frequent Updates on the project: Demand regular updates on the project by email or an online link, and cross check on them by visiting the project once in a while.
- Alterations and Customizations: There are several small customizations that the builder can accommodate without any extra charge, so feel free to exercise this option.
- Due diligence during the handover: The handover process can be a tricky one, and home buyers must have a clear checklist to ratify before taking possession.
- After-sales services: Since builders are supposed to maintain the project till an association is formed, check with other residents on the quality of the same provided.
Remember, end of the day, it’s your hard-earned money that is being invested in a dream home. One should be clear on why they are buying a particular property and must accept as few compromises as possible. This will add better value to your purchase and force the builder to provide better service in the days to come.
In our childhood, we have learnt that area of a rectangle is simply length x breadth. However, in the complex (and sometimes murky) world of real estate transactions, calculating the area of property you own can be a very involved process.
Developers and Builders have come up with various terms to mislead, confuse or take advantage of buyers.
- Carpet area, as the name implies, is the horizontal space within the confines of the external walls of your individual home unit.
- Built-up area is the carpet area + balcony + half of the terrace area + plinth area (horizontal footprint of vertical elements like walls, windows, doors and AC ducts). This is generally 10% more than carpet area.
- Super built-up area is the built-up area + a share/portion of common areas like corridors, lifts, lobbies, entrances, passages, security-outposts, DG room etc, and amenities like clubhouse, amphitheatre, gardens, swimming pools and play-areas. This is generally 25% more than built-up area.
It’s important to know how these terms will make a difference in your transactions, and lifestyle.
- Purchase: The difference between the built-up area and super built-up area is called loading factor. In most apartment complexes, this is approx. 25% while large villa projects with abundant greenery can have a large loading factor. Builders just quote on super built-up area, which is at an advantage to them.
- Sale: However, at the time of sale, one will realize that the saleable area is actually lesser than the super built-up area, which is at a disadvantage to the home owner.
- Maintenance: Maintenance is generally calculated on the super-built up area, so villas in a large gated community can be more costly from a maintenance perspective.
End of the day, one’s buying decision depends on budget, desired lifestyle, and negotiating power at the time of purchase. Bear in mind all of these facts to ensure a good deal.