Do You Know How to Get the Best Deal?

Bangalore: When it comes to buying a property, investors should know how to make a good deal and win.  As the economic growth has slowed down, the demand for property has also slowed down and this is the perfect opportunity for the investors to get a good deal since developers are facing problems to carry out their projects due to less home sales.

Ramesh Nair, managing director (west), Jones Lang LaSalle (JLL) India, a property advisory firm cited that "Developers are going through a phase of liquidity crunch. As home sales continue to be sluggish in many parts of the country, they are becoming more open to price negotiations”, reports Business Today.

Below are some points to check out quickly before buying a property.

Update with the new trend

To deal with the developers, buyers have to be acquainted with the current local market. Investors should know the cost of alike properties in and around the area, properties that are up for sale and the time periods.  Price analysis is one must thing the investor should know as the activity need lots of research to find out the launch price and the latest price. Local brokers would be the best to find out the latest price trend.

Kailash Gahlot, director, Brisk Infrastructure & Developers, stated that "Two factors that play a major role in price negotiations are the cash-flow situation of the developer and the number of units he needs to sell. If the developer is cash-strapped and has a lot of unsold inventory, it will like to clear the stock to generate cash. Therefore, the situation varies from one developer to another. The customer needs to gauge that”, reports, Business Today.

Propose an offer

After getting all the details on discounts, investors should propose an offer to developers. Approach the developers and express urgency of buying a property if you are a serious buyer, developers are likely to give discounts. Most importantly don’t stick to only one developer, approach different other developers as well to enquire about the price for your preferred property to get best deals.

An area that has more number of unsold inventories will naturally see decline in sales in the environs, you can always take it as an advantage and pick it up to point it out to the developers.  This process may bring good fortune in a deal as developers sometime sell off at low prices to get cash for their new projects.

Show money

Developers are always in a hurry to sell out their inventories as soon as possible. To get a best deal, the buyers should keep their cash ready so if needed they can do down payment and fix the deal.

Gahlot of Brisk Infrastructure stated that  "If the customer has surplus funds and wants to make a cash-down payment, he can negotiate for further discounts, even as high as 9-10%. If a customer has outstanding home loans, the situation will be different," reports Business Today.

Practical approach

The buyers should negotiate a deal with practical prices. If developers see your negotiable rate is unrealistic, it might give a negative impact resulting in no negotiations.

Whether you go out to buy alone or in a group, negotiate for what you estimate is a realistic price. "While developers are willing to negotiate in today’s market, they are averse to reducing the quoted price below a certain point. This is partially because they do not want to publicize the fact that some customers paid less than others. They are more likely to offer freebies or incentives," says Ramesh Nair of Jones Lang LaSalle, India, reports Business Today.

At times, developers might not concur to reduce prices that buyers desire for. At this situation, let developers know that you will analyze the deal thoroughly to come to a conclusion. Take time to decide whether the deal you looking for are worth or not, never take decision in a hurry, who knows that at last moment you might have just convinced the developer and fixed the deal.