Marketing and Real Estate: How Much Should You Absorb?

Flashy hoardings, fancy signboards, celebrity endorsements, discounts and offers, assured returns on investment, unbelievable deals – the marketing buzz around real estate can sometimes get a bit overwhelming. As much as 25 per cent of a developer's yearly expenditure is marketing spend which is seen, mostly, as an investment. With rising awareness among consumers in India, the need for look and feel of products is a must. Moreover, the credibility of the brand, based on how many people are talking about it on social media, is also a key advantage. Marketing, therefore both online and offline, validates the authenticity of any commodity, or so has it been perceived. 

Real estate is no different. Pitching the dream of not just a home but a lifestyle is what will click with a prospective buyer. But how much of this should you absorb as a consumer?

Kavitha Subramanian, a Bangalorean who came across a property in Chennai's Oragadam was aghast to find out that the property that was being offered at a 'throwaway price' was an unauthorised construction. “In fact, it was not even Oragadam but miles away from the area and lacked infrastructure. There was an advertisement about it in the television and because it got such coverage, we never thought it could lead us to a goof up. We were merely a day away from finalising on it and we got to know that the builder had no papers,” says Subramanian. The property was being touted for Rs 14 lakh while a similar 2BHK apartment in Oragadam at the time would cost close to Rs 22-25 lakh. 

Here are some tips to help you out:

Do not assume 

When it comes to property, do not gamble. Ascertain whether the property, location and even the developer is a good bet. You can conduct your own research by referring to online forums and real estate portals, some which give you insights on the pros and cons of investing in a particular location. Social media, too, is in one way a great tool to conduct a primary research. Often developers who haven't kept their word or have deviated from their plans face the ire of the masses and online platforms are a good way to ascertain this. Bank on formal indices such as research reports by real estate portals that publish unbiased information about the trends in the market. If you invest in a locality with potential, there is no need to run behind deals and discounts. The property will yield good returns in the long run. 

Keep away from lucrative offers

Buyers usually wait for the 'discount season' or the festive season. Although, it is a good time to buy, banking on a little discount is not a wise idea. Gold coins, cars, free furnishing, modular kitchens, per sq ft discounts and sometime international trips can come as freebie with a unit. These are good as long as you do not have to compromise on amenities or the credibility of the developer. After all, such offers are merely one-time gains while the property you buy is going to stay with you forever. 

Similarly, assured returns and buy-back guarantees are good deals only if you have read the clauses and they are acceptable.

Consult experts

As per Indian sentiments, family comes first and then comes the peer group. There is much to learn from both the groups. Your family needs to have a say in what suits them. Similarly, friends can give you feedback or any other assistance in terms of background checks. You can also learn from their past mistakes. However, do not rely on any of these solely. Many even rely on brokers. Brokers too have a pool of properties to pitch from and therefore his opinion may be but one man's interpretation of what's available and what's good. 

Consult experts – eminent bloggers, market journalists, property consultants to get a wholesome idea. 

Brand of the developer 

Real estate in India is so vast and unorganised a sector that there are many who may have resorted to 'doing real estate'. They might be in one way or the other be related to construction and allied jobs. That however, doesn't make them credible. While selecting a project, make sure you have settled on the right developer. A good developer would have a clean past, healthy track record of timely project delivery, accountable cash transactions, sufficient finances and popularity among his buyers. After-sales management is also an important tracker of how the developer identifies with and maintains relationships with the buyers. He is often ready to handle any unforeseen circumstance that the buyer may have faced after the purchase. In fact, such developers do not even need to woo buyers with discounts.

Marketing is an integral component but all that glitters is not gold.