SEVEN STEPS TO A HOME

SEVEN STEPS TO A HOME

Understand your needs, finance options and the fine print on the project before signing on the dotted line, says PARESH KARIA

    Buying a home is one of the most important decisions in our lives as it could change the way we live forever. Also, it involves investing substantial amounts, which could mean parting with your life savings or even getting indebted for a long period of time. Here are the seven steps to going about buying a home systematically. 

1) CLEARLY DEFINE YOUR NEED
    This is the first and the most important step. It has been observed that people end up visiting numerous properties and realise that most of them do not meet their requirement. Hence, it is essential that you understand your needs first before hitting the ground. The best thing to do would be to sit together with your family and make a table having various parameters/requirements like budget, location, type of house, size, mode of financing, date of moving in, proximity to work place/ schools/ hospitals/ place of worship etc., public transport, amenities like play area, club house, swimming pool in one column and write down your requirements against them in another column. This discipline of putting things in writing will certainly help you in crystallising your requirement and save you a lot of leg work. 

2) DO SOME RESEARCH
    Once you have penned your requirement, you can start your house hunting journey right from your home itself. A good way to start would be to visit various property websites/portals. These websites could be categorised as under:
    Websites like Magic Bricks which have listing of existing properties from property owners as well as brokers and new properties directly from developers.
    Websites of large national level brokers which will have listings of new properties across multiple cities and locations therein.
Websites of local brokers having listings of properties available in resale in a specific micro market.
Another important source would be news papers, especially those carrying special supplements and classifieds (usually with weekend editions).
    Meeting a reputed property broker is also advisable as he would be able to provide information and share the advantages and disadvantages of various properties from multiple developers.
    One should also visit property exhibitions which are held at regular intervals as they give you the opportunity of getting information from multiple developers under one roof. 

3) SITE VISITS
    After you have gathered information about various properties, you need to once again sit together, corroborate the same with the table of your requirements mentioned in step 1 above and shortlist the properties for site visit. Thereafter, you need to plan your logistics for the site visits in such a way that you cover as many properties as possible in the shortest possible time. You may visit the properties on your own or with a broker, in case you are not familiar with the locations. At the site, you need to check on the sample flat, the layouts, detailed costing, payment terms, construction schedule and delivery time, status of the requisite approvals (Commencement Certificate etc.) from the concerned authorities, registration and other legal formalities etc. Also it is very important that you see the exact site where the building is coming up and assess for yourself the status of construction. Do not simply go by what the developer or broker has to say in this regard. 

4) SHORT-LIST THE PROPERTY
    After the above steps and with few reiterations, you would have been able to identify a few the properties from amongst which you would like to buy. It's time to double check and get reconfirmations. You should check the reputation and track record of the developer especially from someone you know who would have purchased from him. One should
    also visit the area in the vicinity of the property and see the life in the neighbhourhood, the social infrastructure, transport facilities etc. It's also advisable to visit the other completed projects from the same developer and see the quality of construction, finishing, amenities etc. One should also check with some leading bank if they have approved the property for home finance. After having done all this, you can zero in on the property you would like to buy. 

5) UNDERSTAND THE LEGALITIES AND PROCESS INVOLVED
    Now that you have short-listed the property you need to understand the legalities involved especially if it's a resale property. You may have to hire a lawyer for title search, documents verification, etc. You also need to understand what would be the related cost like stamp duty, registration fee, taxes etc. and timelines for completion of registration and other documentation. 
 
6) UNDERSTAND FINANCING OPTIONS AND GET THE PRE-SANCTION In case you would be taking a loan then, before you commit yourself, it is important that you meet the bank and understand your loan eligibility, cost of funding, amount the bank is willing to lend for that property, expected EMI, pre conditions and schedule for disbursement etc. It is advisable to get a pre sanction from the bank so that you know exactly how much amount will be available. 

7) MEET THE DEVELOPER FOR NEGOTIATION AND CLOSURE It's time to go for closure and it’s advisable to go armed with cheque and pre sanction letter so the developer knows you are serious and would be more accommodating in negotiations. You may try to negotiate on three fronts, depending on your need and circumstances 

Price: You may negotiate on base price or waiver of floor rise/preferred location charge, free car parking, reimbursement of Stamp Duty and Registration charges. Payment terms: You may negotiate on the payment terms to suit your cashflows. Apartment of choice: You may press for getting an apartment of your choice i.e. on lower floor to save floor rise, on higher floor for better view, corner flat etc. Also at this stage you need to understand whether there are any other hidden charges or liabilities which may arise anytime in future till you get the possession or even thereafter. You also need to understand the t i m e l i n e s, process and documentation requirement for registration.