Gone are the days when investors led the property-buying race while end-users stood behind. The Indian real estate space has now transformed into a ‘buyers’ paradise’ with consumers being spoilt for choice.
Developers are also scouting for ‘real’ buyers for their unsold inventory across the country. They are leaving no stone unturned to sell their stock. From high spends on marketing campaigns to offering freebies to few giving discounts, it’s an all-out effort to lure buyers.
In this scenario, it is imperative for buyers to know that they are the ‘king’ and they can negotiate a good deal. But, be aware that negotiation doesn’t necessarily mean being unrealistic and too demanding.
If you have found your dream home, here are some simple tips to help you grab the best deal.
Negotiating vs bargaining: Understand the difference!
Just when you think that builders will bend to any degree in the current scenario, then it is highly wrong. After all, they are doing business, and there is a cost incurred in building a project.
While they may cut down on their profit margins to some extent, they will certainly not compromise on the actual costs.
Hence, it is imperative that you differentiate between the two – negotiation and bargain.
Negotiation creates a win-win situation for both – builders and buyers. It focuses more on what is right and how the two parties can, in a cooperative manner, come to a logical conclusion.
Bargaining, on the other hand, is more about one party winning and the other losing. And in all likelihood, builders will be ready to negotiate a deal but never bargain until unless there is some catch.
So, be realistic!
Do your homework well!
Before going to the negotiating table, perform in-depth research about overall market conditions. Realty portals will come handy here. Try to gather information about the locality, builder, and other projects in the vicinity. This will give you more clarity and an upper edge when you visit builders.
Zeroing in on two-three locations is also highly recommended. It will help you understand the market in terms of connectivity, accessibility to important places, and social and physical infrastructure. You should also keep a tab on any upcoming infrastructure in and around the area. Remember, the more you know, the better it is.
Also, unlike smaller players, Grade A developers do not leave much room for price negotiations. They would instead settle by offering freebies or customised payment plans than reduce prices exorbitantly. Thus, it is better to make use of payment-plans than lose out on the deal.
Know the best circumstances to negotiate a good deal
Believe it or not, large size units and luxury properties today have maximum room for negotiations. So, just when you thought of buying a 2 BHK unit, you might want to reconsider your decision and upgrade.
In the prevailing market, 2BHK units or even 2.5BHKs have maximum buyer demand. Hence, builders are not as keen to negotiate in these categories as much as they are for 3 / 4 / 5BHKs. So, if you can extend your budget a little, go for large-size units. You might just get the best value-for-money deal.
Also, know that ready-to-move-in properties will have better scope for negotiations in comparison to under-construction ones. After all, builders will be looking to clear their unsold stock and release their new ones. Interestingly, it’s a win-win situation for both buyers and builders.
Vastu can make or break a deal
Often, developers are open for negotiations in a project where only a handful of units are left unsold. Now, this could be mainly due to non-compliance with Vastu principles. But if Vastu doesn’t bother you, then it could be a golden opportunity for negotiation. In fact, many builders are willing to reduce the cost of such properties.
Additionally, properties that don’t have any preferential location charge (PLC) may also be slightly negotiable. For instance, units that are pool-facing or have a park view may have extra charges levied.
Here, the builder will know the value of such properties and may not negotiate on such units. But, if you are ready to compromise on these extra perks, then you can negotiate well with the other units.
The do’s and don’ts of a negotiation
• Do your research well before getting into the meeting. It’s better not to be too hung up on small price differences and then lose out on a good deal.
• Do make a list of all the projects by different developers in the vicinity that you are interested in. Being well-aware of all information will give you an upper edge.
• Don’t show desperation in case you like the project. It will only ruin the chances of all negotiations.
Word of caution to buyers!
Buying a home is one of the most significant decisions in one’s life. Hence, while you may be tempted by umpteen offers, don’t ignore the small asterisks at the end which reads *Conditions Apply!
• Ensure that ‘cost of freebies’ is not added to the basic cost
• Check the clauses pertaining to cancelling the booking or changing it
• Double-check all details for the projects on discount
• Read the terms and conditions thoroughly
• You can also consult a real estate investment advisory firm to assist you in getting the best deals
By following the above the tips, you are sure to strike a fair and reasonable property deal. Not sure about your negotiation skills? Our friendly Home Buying Advisors can help you!