Here are 8 tips to safeguard you from being tricked by real estate agents and builders into buying a house at a higher rate or investing in a project that isn’t as great as it seems to be.
Anyone who has ever bought a property or has invested in real estate will tell you that buying a house is no walk in the park.
First of all, you have to plan a budget and choose the perfect house for you from a sea of real estate options. Second of all, you have to look for the best Home Loan from a plethora of Home Loans offered by every other bank in the country. But, most important of all, you have to beware of being tricked by real estate agents and builders into buying a house at a higher rate or investing in a project that is not great as it seems to be.
In order to take advantage of naïve buyers who aren’t aware about the business of real estate, builders and real estate agents lure them into investing by using a few tricks of the trade.
Additional Reading: Real Estate Investing 101
Before you rush into buying a house, be aware of these 8 tips that could save you from being tricked:
Don’t rush into buying
Buying a house requires a lot of patience as you need to be sure if you are getting the best deal or not. So, the first rule of property buying is, don’t rush. Builders, property dealers, and real estate agents generally use the trick of showing false figures to create the sense of scarcity that pushes you into buying a house in a hurry.
They may tell you that most of the houses have been sold already and there are only a handful of flats available. They may say that if you don’t book the flat in the next 10 days, every last house will be sold out. In a similar attempt to rush you into buying, real estate agents will claim that they are selling the flats at lower prices under the pretext of an introductory offer.
These agents will try to pressurise you into buying the house by saying things like the rates of the property will rise steeply once the offer period expires. Either way, one needs to understand that these are just tricks to make one buy the house in haste. Don’t fall prey to such tactics as a bad investment can haunt you forever. Take your time, investigate everything about the property and then make a wise decision.
Don’t be fooled by brochures and sample flats
One of the known tricks of real estate agents is to seal the deal by mesmerising the prospective buyers with flashy brochures and luxurious sample flats. Usually, NRIs fall prey to these tactics as they don’t check the actual property after being floored by the brochures.
Remember that these brochures are created to show you a world of luxurious living that you crave for. But the reality of the project can only be assessed by checking the property in person. When it comes to sample flats, they are designed tastefully by interior designers using classy furniture and other accessories with the sole aim of making you eager to buy a flat.
You can’t afford to decorate your house just like the sample flat because it can be extremely expensive. The bottom line is to not be tricked by these brochures and always visit the property before taking a decision.
Check for approvals and legal documents
One of the most important things before investing in real estate is to make sure that the property has acquired all the approvals and is legally authorised. Most investors don’t inquire about the legal documents and necessary approvals and are thus conned into buying a house that can run into legal trouble in the future.
Do not invest in properties that are built on disputed land or that do not have sufficient approvals from the government, environmental board etc. So it is always advisable to check legal documents instead of getting your money stuck by investing in an unapproved or disputed property.
Don’t be swayed by free gifts and discounts
One of the oldest tricks in the book that builders and agents employ is to offer free gifts and discounts on the purchase of the house. By taking advantage of our affinity towards free stuff, they may emotionally manipulate us into buying the property by offering gifts like a free car, a modular kitchen etc.
While there is nothing wrong in offering free gifts, more often than not it is accounted for in the final purchase price of the house. Also, experts say these free gifts are just a distraction to make people buy a property that is surrounded by problems.
So, if your builder is offering you a free car or has promised you a free modular kitchen, be suspicious and feel free to investigate before purchasing.
Check out nearby properties and negotiate
If the real estate agent comes off as too pushy to seal the deal at a higher rate, you can start the thread of negotiation by checking out other properties in the vicinity. Before you put your hard earned money in a housing project, always check out the nearby properties to make sure that you aren’t being conned by being offered the house at an expensive rate.
Once you check the rate of flats in nearby properties, you can go ahead and strike a negotiation without being afraid that you are being fooled by the agents.
Check which banks have approved the project
One of the simplest ways to check if the property is of good reputation is by asking the builders for the list of banks and lenders that have approved the project. Banks conduct primary rounds of investigations to check if the property is deemed fit for their approval. If renowned banks and lending agencies have given their approval then the property is a good investment. Otherwise, beware of putting in your money as the property seems to be either dubious or surrounded by problems.
Don’t be fooled by infrastructural development promises
At the time of buying the house, builders will claim that the area around the property is all set for an infrastructural boom. They may make promises of a big development that is about to take place in the next few years with schools, colleges, hospitals, highways, shopping malls etc. coming up in the vicinity.
While it all sounds hunky dory, it is one of the most common pitches used by builders to lure the buyers. Don’t blindly believe the promises made by the builder and take efforts to check what kind of infrastructural developments are about to happen in the coming years in that area.
Don’t be over eager to buy
Last but not the least, don’t sound or appear too eager to buy the property. Once the real estate agent senses that you are desperate to invest in the property, they will go all out to rush you into buying the house.
Remember that this is not the last house on earth and that there are other fish in the sea. If you come off as too eager to buy the house, you have already lost the battle against the scheming agents who will make sure to loot you by selling the flat at a higher price.
Additional Reading: Avoid Real Estate Scams To Reap Rich Returns
Now that you know all about the tricks employed by builders and real estate agents to sell houses, use these 8 tips that you learned today to stay ahead in the real estate game.