How to Assess the Credibility of a Real-Estate developer Before Buying a New Home

Individuals who want to buy a new home should definitely make sure to check the credibility of the respective residential property builder before they come up with a final purchase decision. This is applicable for all the properties and locations, i.e. whether you are looking for apartments for sale in Bangalore, Delhi or Kochi, etc. For this, you have to-

Perform a Detailed Verification Online

If a developer or a builder is a reputed individual, you will obviously get many good results of him on various forums and blog pages, along with the web presence of the respective builder on websites, press releases, Facebook and other social media pages.

Communicate with Local Brokers and Customers

Communicating with previous customers and various local brokers will let you know about the actual level of satisfaction they obtained and the eagerness of brokers to push the residential properties of a particular builder.

Never Overlook the Partners of the Project

Completion of any project in a successful manner involves a huge amount of teamwork. Because of this, it is very much essential to collect information about all the partners, such as the marketing partner, contractors, auditors, etc. as this will give you a good idea of the quality of the project. Each of these professionals plays a major role not only in the success of the current project, but also in the respective property’s resale value.

Analyze the Track Record of the Builder

Next, you should check the track record of your chosen builder. You have to collect information about the exact numbers of successfully accomplished projects under his bucket. In addition, you should collect data about the actual size and scale of the projects handled. Along with this, you should know whether the builder possesses any experience associated with the development of projects involving almost same magnitude and scale as the present one. This will give you a good idea of whether he will be able to complete his work, without compromising on quality, on time.

Affiliations of the Builder

Any credible property developer or a builder should preferably be a member of known associations operating at a regional or national level. Although such bodies are self-regulated, they usually set rigorous standards and stringent norms for the members, non-compliance of such things will result in blacklisting.

View Realty Ratings

Next, you should make sure to check the realty ratings of a particular real estate project based on the popular CRISIL Real Estate Star Ratings. This helps new home buyers to get an unbiased and an expert opinion about their future home.

Alternatively, you may opt to get the credible rating database from the National Developer Rating list, as it appraises the developer/builder also along with his projects based on different factors, which include records of transferring a clean title, conformance with the laws, construction benchmarks and adherence towards the completion of projects within the mentioned deadlines.

Liquidity Possessed by the Builder

Finally, you should check the financial statement, particularly the cash flow and the balance sheet possessed by the company or the individual builder group to make sure that it has enough liquidity to complete the under-construction projects.

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