Group Buying: A Win-Win For Buyers & Developers

Buying a house may not be a breeze. Even with careful planning and foresight, it sometimes takes years for people to have a home of their own.

Given the ever-decreasing residential land in urban areas and soaring prices, owning a house has become even costlier. So, whenever an individual gets a discount on a house, happiness and relief overwhelm him. Getting a desired discount isn't easy!

Buying a home individually may not get you a good discount but how about doing so in a group – with friends or colleagues, maybe? That usually gives you a better bargaining power, and a greater discount.

Popularly known as group buying, the idea of a large number of people committing to a purchase is a simple way of getting a discount. This group of buyers can directly deal with the developer or negotiate cumulative bargains through a property advisor.

Such a deal also gives the developer an opportunity to clear his inventory at a faster pace. With a large cash flow, less spending on attracting customers and marketing, the developer gets to sell his properties in bulk. Also, since the down payment in group buying is higher, the developer gets the much-needed cash.

Ashudeep Batra, operations head, Exotica Housing, says: “Group buying is a recognition of a developer's market goodwill – it's the companies or group buyers that are approach him for buying apartments. This is also known as corporate booking. Group buying in real estate is a win-win proposition for both parties. It assures the developer of multiple apartments getting sold in one go. Such bookings always fetch good discounts and offers that are not floated on a regular basis. However, as a company policy, we do scrutinise buyers before closing such deals.”

Talking about the extent of discounts, Batra says group buyers can get up to Rs 50 lowered on every square foot of space. Also, home appliances, wood work – generally not available to individuals on a regular basis – are offered in such deals.

Group buyers can also benefit from sharing costs like lawyers' fees and knowledge on home loans, compliance, etc.

However, whether buying alone or in a group, one should always negotiate for a realistic price. Although developers are willing to negotiate, they are also averse to reducing the quoted price beyond a certain point.