Exchanging your Old Flat with a New One? Think before you leap!

Read any report on the performance of residential real estate in the last quarter and you will find the same story: the market hasn't performed well. To improve the figures, developers are coming up with interesting schemes. One such offer is the flat exchange. Here, customers are given an option of exchanging their old houses, apartments, or plots for plush apartments in the heart of the city. Find the scheme inviting? Beware! It is not as simple as it seems.

Whenever a builder offers any scheme, you should keep in mind that you are not the only one benefitting from it. The builder has his profit margins too. In case of flat exchange, buyers generally get fooled over incorrect valuations. As an informed customer, you should always ask the builder to calculate the purchase price in a transparent manner. Additionally, it is good if you yourself get the valuation done, once beforehand.

Property exchange is a marketing trick. There are chances that the market value of the apartment offered falls in the initial months of the purchase itself. To ensure that it doesn't happen with you, keep a track of the current and projected market prices of the apartment offered before signing the contract.

Another critical aspect of exchange schemes is that not every property offered is deemed fit to be purchased. Essentially, developers wish to purchase only those properties which could bring good returns in the future. It may happen that a poor quality home in a good location fetches a better price than a well-furnished one in a not-so-developed locality.

However, there are certain situations where flat exchange deals might be worth a loss. For example in cases where you are struggling to sell your house or need to relocate urgently or don't want transaction hassles like bank loans. In case you are facing such situations, the offer might be a good bet, provided the apartment offered is of your choice rather than a left-over one.

Therefore, be an informed buyer stay updated by visiting proptiger.com.