Checklist for First Time Home Buyers
With the implementation of RERA and GST, real estate market is now more transparent and consumer-oriented than ever. However, due to lack of information and clarity, people are confused and sceptical about buying homes. The time to buy homes is favourable and with proper information and guidance, you can buy your dream home without incurring any losses in the long run.
Investing your life savings in your safe haven should be preceded by a checklist. Before taking the plunge, ensure that all the items on your checklist are ticked. Which checklist should you follow? Find out here:
- Details of the project: You have toured the house, talked to the developer and you love the project. But make sure that you have all the details regarding the project. Expand your research regarding the project to Internet, local sources and acquaintances.
- Quality of the construction: Ask the developer about the brand of the products used at the project site. You are investing a massive amount of money on buying a home- you have the right to know which products are being used and if it will withstand the test of time.
- Carpet area: The pricing of a property in a gated community is implemented on a rate per square-foot basis. So it is pivotal for you to know the rate per square-foot as well as the carpet area of the house. As per RERA, the pricing should be based on carpet area and not super built-up area.
- Land ownership: Ensure from the developer and the municipal corporation office that the ownership of the land belongs to the developer and no litigations are involved with the land on which the project will be built upon. This will make certain that the project will be available for possession by the pre-set date by the developer and will not be delayed due to legal problems.
- Approvals from the municipal corporation: Confirm that the developer has acquired all the necessary approvals from the municipal corporation for the construction of the project.
- Non-builder costs: You may be informed on the final pricing of the house. Sit with the developer and understand the breakdown of the pricing. With the implementation of GST, the registration fees and other costs associated with the buying of a home has changed. Educate yourself with the authentic breakdown before confirming with the developer so that you can ask valid questions if necessary.
- Utilities: Enquire with the seller if any inbuilt utilities will be offered along with the house. If yes, then ask which utilities will be provided upon the sale of the flat. Being clear on such minute fronts can safeguard you from future difficulties and unexpected situations.
- Payment plan: Builders have affiliations with major banks and financial institutions. Compare the rates of interest and payment plans levied by different builders to understand which scheme works best for you.
- Possession date: Confirm the possession date before payment.
- Occupancy and Completion Certificate: If the project is completed, ask the developer to provide an occupancy and completion certificate. Occupancy certificate certifies that the property is dispensed without any hassles on the bank loan front while the Completion Certificate attests that the Municipal Corporation authorities have rendered the project as complete.
- Location: Find out if the project is in a growing and upcoming sector of the city. Location plays a major role in the value of the project now and in the future.
- Developer’s reputation: Verify the developer’s reputation – ask about the previous projects, if the project was completed on time, how much time was taken to complete those projects, if they have received the approvals from the Municipal Corporation, etc. In the present day, all this information is easily available on the Internet, giving you the chance to find all your answers at the click of a button – making your task convenient.
- Proper evaluation of money: Ensure that the home is within your budget limit and you can pay the EMIs by taking a loan. Another factor to be verified is that project is approved by nationalised banks.
- Future value: Buying a home is a long-term investment and it is crucial that the buyer evaluates the potential value of the project. Read up on the upcoming developments in the area to gain a full understanding of what the value of the project may be in the future.
If all these points are checked off, know that your decision of buying a home is a smart move and you can go ahead in this direction with a big smile on your face, knowing that not only have you bought a home of your dreams, but also having made a profitable investment which will pay off in the long run. Happy house hunting!