4-Point Checklist to Assess Real Estate Developer’s Credibility Before Buying Property

February 9, 2023 | Indextapadmin

In unpredictable times, developer trust is essential. It is a crucial factor in determining the project's success, especially if you invest in one still under construction. Do not worry, we have come up with a checklist to assess the developer’s credibility before buying a home. Let’s understand the developer’s credibility checklist criteria with the help of top real estate developers Mumbai.

Developer’s Credibility Checklist

• Past Delivery Record

The assertions made by a developer on his website about his skills to deliver projects shouldn't be accepted at face value. Buyers and investors must go beyond this in their research and visit other blogs and websites like India Real Estate Forum, where property buyers discuss a range of subjects, including developers' track record of project execution in the past. Below, we have jotted down some key elements that must be verified, including:

• Have the developer's projects received occupancy certificates? Failure to comply with this is an entirely unacceptable standard, and it is simple to find examples of it on related blogs and websites.
• What has been the general customer experience with a developer's project delivery?
• Is the developer known for consistently delivering projects late? Projects that were delayed because of things like delayed permissions should be given some leeway.

• Potential to Manage Multiple Projects

Is the developer known for consistently delivering projects late? Developers frequently start several projects at once, making it difficult to finish them all on schedule. The characteristic of seasoned professionalism, enough capitalization, and acute client orientation is the capacity to start and finish several projects on time. Any proof to the contrary is a red flag. Here, a developer's execution team is crucial. While a developer might hire a reputable outside contractor and disclose it, this fact does not ensure prompt completion. In reality, it can be used as a justification to show that the developer is not to blame for the completion delay.

• Home Loan Availability and Project Approvals

All project approvals, including the commencement certificate, must be checked by the buyer. While those who are purchasing a home using a home loan are in a better position than those without technical backgrounds, they may not know what questions to ask or how to confirm that they are truly looking at the necessary papers. A bank or other financial institution will take the required actions to ensure that all paperwork is in order before disbursing a house loan.

• Involvement of Private Firms and Credible Partners

Even if you approach the best real estate developer in MMR or anywhere in India, always check if they have a respectable partner, such as a real estate fund or private equity firm. This is a useful approach for investors and homebuyers to protect their interests when investing in a project. This essentially indicates that the partner has performed all due diligence on the project, which is encouraging for a quick conclusion. It also eliminates the chance that money raised from apartment reservations or financed for a particular project may be diverted to other initiatives.

In a nutshell, above we have detailed a quick checklist of the developer’s credibility, following which you can buy a house from a reliable developer.

Whether you are willing to purchase a 2 BHK home in Bandra, buy 3 BHK flat in Khar Road, or your dream house in any corner of the world, you can simply bear this checklist in mind for a safe and fruitful investment.

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