Before get started to search for a property , following points should be kept in mind :
1. Budget
It includes what amount is available to you + how much you can have via home loan etc.
More than 80% buyers need to apply for home loan.
Having approved home loan is also a big issue. Most of the people, generally, don't know how much they can get of loan amount.
so, in order to estimate you budget, you should have to know about your loan capacity. This can be done by asking your bank.
Generally, just to have an idea for this, one can get this information by simply taking 5 times of his/her annual income.
For example, if annual income of a person is Rs.3,00,000/- then Rs. 15,00,000/- is the loanable amount.
However this value can be enhanced if you have more assets or already have another property and can be reduced to some extent by re-evaluation of your liabilities, other repayments for other loans etc.
2.Location
Its obvious that everyone wants to have home nearby a good surrounding from where one can cover his/her necessary distances easily without expensing too much of time.
Its actually the budget that decides where to go. So, shortlist the location as per the budget prepared by you.
3.Title Search
Yet another very important task. Its important to know about the title of a property before you finalize it to buy. Knowing about title would let you know about the safety, building by laws, rate, ownership etc about the property. One must ensure these characteristics before buying a property to avoid any misleadings.
There are generally two kinds of documentation for ownership of a property:
- General Power of Attorney (GPA) - In case of GPA, a person is not eligible to apply and to get approved home loan. So, if you are planning to think of buying such a GPA ownership property, then you need to pay whole amount of said property by your own.
- Sale deed / registry by paying stamp duty to the concerned development authority
4. Pricing per space
Pricing of a property is an outcome of the kind of constructions done, materials used, carpet and super area of the property, surrounding, floors etc. Generally property available at Ground floor is costlier than second and third floor.
While talking about pricing, one should review about the circle rate of the properties in a particular area.
5. Finalizing the property
Before finalizing a property, one must ensure the facilities provided at the premises, the surroundings, basic amenities, transport facilities, security personnel etc.
6.Negotiation
Its the thing that can't be taught. It depends upon the situation varying from individual to individual.
- negotiating with builders - there are some time phases while negotiating with a builder. If you are finalizing a property which is under construction and most of the units are available for sale or there is a time gap of up to 6-9 months ( in local area) to get your property as ready to move in, then you can easily negotiate up to 3-4 lakhs ( if asking price ranges from Rs.25 Lacs - 80 Lacs). However, if you see that most of the units are available as ready to move in, only final touch ups are in progress, then you can negotiate up to 2-3 lakhs only.
- negotiating with property owners/sellers - before you start to negotiate with them, you should have done your homework about the concerned property.
Always ask the seller :
- why you want to sell your property
- is there any kind of liability left to pay off for this property
- can you provide us the chain of sale deeds or GPAs
- is this property mortgaged to some bank etc
Having known these answers would let you talk easily for negotiation. Generally its not easy to negotiate with property owners to a higher extent than what we do in case of builders. So, ask them first before you serve them with your offering price. Its seen that more than 90% people negotiate with owners or sellers upto 2 lakhs only.
7. Paper work / Documentation
Never delay for this immediate required action.
Get "agreement to sale and purchase" right after you pay your token amount.
If any part payments are decided to pay off , then do not forget to get , " Part Payment Receipt" affixed with revenue stamp and having signed up with two witnesses.
At last get your property registered or GPA.
Always keep records of proper documentation. This will help you when in near future you would like to sale the same property.
8. Involving a broker/consultant/third party approach
Getting involved a broker or consultant saves time and the head aches too.
Consultants are the professionals who provide you their services and for the same they charge a consultation fee also.
Its better to appoint a broker as they know better about the market rate and the paper work of the properties. They do the entire activities to execute your purchase completely.
It would be convenient if the buyer gets an agreement with a broker citing his/her duties to be carried out by him and the brokerage amount should be decided before you proceed with him to avoid any kind of conflicts.
