Top 10 Mistakes to avoid while buying an Apartment

Top 10 Mistakes to avoid while buying an Apartment
February 14, 2019 | Construction Consultant

When you’ve worked hard to own your dream home, and have made a wish list of promising apartments in Kochi, apartments in Thrissur, or apartments in Trivandrum, there are a few important things that should never miss your notice. Sometimes, you get the location right considering the proximity to the workplace, public transport, amenities such as schools, hospitals, restaurants or recreational areas sorting your family’s needs perfectly. But most of the times that excitement of getting the keys to your dream home can make you commit blunders.

So here are some of the most common mistakes that you can avoid to ensure a happy and peaceful living.

1. Lack of research on the builder’s reputation and financial backing

Though you can do a quick internet search by keying the company name, it is always advisable to do field research. Talking to customers who have bought units in old projects will be a good idea. It is always safer to buy from an experienced builder with a good track record. A reputed builder is expected to have a more professional network of systems and processes in place.

As per the International Organization for Standardization’s 9001:2008 certification, criteria for a quality management system is based on eight principles, including customer focus and satisfaction. An ISO 9001:2008 audited and certified builder is therefore expected to be more professional in their approach.

You need to check if the builder is over-leveraged or not. Builders with strong financial back up complete their projects on time. Some listed builders would have their financial details uploaded on their website. For others, you can contact the concerned Registrars of Companies (ROC) office for details.

2. Lack of market study and research

The market dynamics in real estate keeps fluctuating. So before you invest all of your hard-earned money into a property for sale that you’ve got your eyes fixed on, you must know if it’s the right time to invest or not. Also, research on every aspect of the property including its previous ownership, building type, the history of builder etc.

3. Overlooking RERA norms

Did you know that according to K-RERA norms, buildings with more than eight apartments and real estate projects with 500 sq metres of land or more should be registered with the authority and is not accountable for sale until obtaining registration from K-RERA. Not just projects, real estate agents or brokers also need to register themselves under RERA in order to facilitate a deal or transaction. This rule adds accountability and transparency to the process and helps you identify fraudsters.

4. Relying on real estate agents blindly

Always remember to do your own research rather than trusting real estate agents blindly, for they can be very persuasive to close in on a deal. In many cases, the agent will be a seller’s agent and this can never work for your advantage. While taking realtor’s advice is advisable, one must not completely depend on what he\she is offering.

5. Overlooking paperwork and legal verification of land documents, approvals etc.

Documentation is perhaps the prime factor to consider while buying a property.If people ignore the documents,there is a possibility that they could end up losing both their money and property. Therefore, scrutinizing the documents to check if they are legitimate and up to date is mandatory.

When a bank approves a project, they check all the documents, respective survey numbers, sale deed execution, conversion certificate etc. It is even safer if the project has been approved by a Nationalized Bank. Or you can even entrust your legal consultant to do a verification check.

6. Be careful with car parking allotment and plans

Select your car parking at the time of booking the property and get the parking layout signed with the builder. Also, ensure that the sale agreement has your floor plan along with electrical and plumbing plan.

7. Read the agreement to sale carefully

Whether you are purchasing a site for construction of a home or an apartment from a builder, the sale agreement is a document that you will need to scrutinize minutely before signing. Because once signed, you will not be able to counter anything that is on it.

Handing over the property should be planned well in advance. The ‘agreement to sale’ will have to specifically carry the date of possession and should include a delay penalty clause just to be on the safer side. Also, ensure that the agreement to sale is registered.

8. Check the carpet area to saleable area loading

Ideally, the area of the common spaces (like amenities, corridors etc.) should be calculated and added proportionately to each flat. Since there is no written rule with regards to loading, in cases of properties with high amenities, it could even be as high as 40percent.

A prospective purchaser needs to diligently check the carpet area and saleable area and see if it is within acceptable limits. However, with the new RERA regulation, a builder must provide the carpet area of the apartment.

9. Not checking hidden costs

Does your builder’s price list indicates about the additional costs they might be charging you while handing over your apartment? Builders often throw in some extra charges when you are least expecting it. Eventually, buyers find themselves shelling out more than what was quoted by the builder. The additional charges levied can be on the following:

  • Cabling Cost, Transformer
  • Legal Charges
  • KSEB/ KWA Charges
  • Club House Charges
  • Maintenance Charges
  • Corpus Fund for Association
  • Taxes (One Time Village, Property Tax)

10. Not getting your finances right

If you’re planning on a home loan to buy your dream home, making a fair calculation of your monthly income is necessary. Often buyers make the mistake of purchasing a property that burdens them with the monthly EMIs and additional costs like insurance and taxes. Avoid this mistake by fixing a budget and sticking to it.

People make mistakes. But making mistakes in real estate can cost you money today as well as in the future. So it is wise not to commit mistakes in the first place. Always make sure to
consider each and every aspect mentioned above to achieve a smooth and luxurious living in your dream home. But with the right and the best builders in Kerala, you can never make mistakes. That’s why we suggest you associate with Kalyan Developers, one of the most trusted builders to make sure that your dream come true.

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