by Akhilesh Kumar,
It takes two to tango. For any industry to grow, the demand and supply sides must work in tandem. The business of realty is no exception. In the era post implementation of RERA, builders have been compelled by statute and the dynamics of a competitive market to offer more transparency coupled with alluring deals to home buyers. But are buyers ready to reciprocate as yet?
The average Indian home buyer is looking for a good bargain. But a bargain in ignorance of the trade-offs involved achieves just the opposite. Oftentimes that may happen due to the buyer’s own greed, fostered by his gullibility. The competitive market offers a plethora of distractions being hard-sold by eager agents.
Presently, there are more sources of information at the disposal of the home buyer than ever before. Be it in the form of magazines, newspapers, online portals and real estate websites. However, perhaps due to sheer laziness or mental blocks, some buyers do not research and are wholly dependent on the agent or broker. Such a broker may be the seller’s agent, and/or expose the buyer to limited properties based on his selfish interest. Over-dependence on such brokers culminates in bad deals and in turn, does not augur well for the growth of the industry.
Such market distractions can adversely impact the buyer’s decision in multiple ways. For example, when buyers set out to buy a new home, they have a certain budgetary estimate in mind. As they explore the market for various options, they are finally tempted to buy a property that is beyond their budgetary constraints. Home loans have a long-term payment schedule. The buyer’s failure to cope with EMI payments ends in the repossession of the property by the financer.
Also, in the excitement of having found the ideal home, buyers sometimes make a token payment, often having been misguided by agents whose objective is to close the deal at the earliest. In the event of later discovering that the buyer has a low CIBIL score, the loan may either be approved at a higher cost or not be approved at all. As a result, the buyer either has to give up the token amount and the home or gets into litigation.
In some cases, buyers are not duly informed by the broker about the hidden costs involved in the purchase of the said property, such as registration charges, taxes, maintenance charges etc. Or they do not personally scrutinize the legal documents, such as Commencement Certificate, Occupation Certificate, Environment and other clearances from local authorities. Some buyers are credulous enough to be reliant on verbal communication with the seller. Yet others do not read in part or whole the clauses of the final agreement before signing on the dotted line. Unsurprisingly, such buyers are duped.
In the light of the aforesaid, the need of the hour is; mature, intelligent, thoroughly researched and well-informed buyers for the healthy growth of the real estate market.