How To Buy A Home During The COVID-19 Pandemic

Buying a home during the COVID-19 pandemic may not be as strange as it sounds. For those who were considering upgrading to their own home, this could be a perfect time to make a purchase, as the market rates are already low, developers are desperate to clear their unsold stock and generate cash flows and mortgage rates are at the lowest. However, site visits are limited to virtual screening and digitours and home loan disbursements will only happen, once the lockdown ends. Amidst all this, if real estate investments interest you, here are a few tips for you, to make your decision.

How to research a locality

*Check out local online social groups and community pages: There are many online community groups on Facebook and Twitter that you can join or just browse, to understand local issues and topics that people talk about.

*Go through the local newspaper: Go through the local page in the newspaper, to know if there is an ongoing issue in the area or something related to land earmarked for any project in or around the neighbourhood. 

*Take the help of Google resources: Take the help of Google Earth and Google Maps, to plan your travel and check alternative routes available.

*Check out property listings in the area: Have a look at real estate listings in the area and the nearby locality, to understand the kind of people who might be buying. You can also check out the available commercial spaces nearby, to know how feasible the location will be for your future use. 

Questions to ask your property broker

 If you are dealing with a property agent or salesperson from the developer's company, do ask these questions before making a purchase:

*Can I cancel the booking, after paying the down payment?

*Is the booking amount refundable and under what circumstances?

*What is the timeline for the completion of the project?

*What are the chances of the project getting delayed?

*How soon will I be able to move in to my new home, once the lockdown is over?

*Is the project registered with RERA? What is its RERA ID?

*Are there any possession-linked payment plans?

*Is there any price-assurance scheme offered by the builder?

*How soon I can sell the property after signing the sale agreement?

*What is the market value of this property and what are the discounts being offered?

How to negotiate a deal 

Know the market rate and annual returns: Find out the market rate of the property before the lockdown era and annual returns expected in the area. You can conveniently negotiate prices up to 20 per cent right now, if there are many options available in the locality you are buying. However, if it is a seller’s market or if there are few properties to buy, there will be little scope to bargain.

Compare other projects: Before entering into a final discussion, ask your broker about other projects in the same locality within the same budget range. Ask for available discount and offers on other properties and make a decision smartly. However, do not invest in a low-quality project, just because of cost benefit. Evaluate the project on the basis of the builder’s past track record, quality of construction and value for money.

Seek discounts on other costs: Apart from discounts on the base price, you can also get a good discount on other miscellaneous costs, such as club membership fee, annual maintenance charges or preferred location charges, etc. You can ask for discounts on these components, to bring down the total cost of buying the home.