Real Estate Festive Offers: How To Make The Right Choice?

This festive season is going to be exciting for home buyers and real estate developers. Many home buyers, who had put on hold their plans to buy homes, now wait for lucrative deals and drop in realty prices. Developers, on the other hand, with large inventory, are expecting at least 50 per cent spurt in home sales this season.

A number of property sales are currently underway and there will be many more as festive season progresses. But before you opt for an offer on homes, It is wise to study all the festival deals in the market. 

Here is how to begin:

Calculate & compare

The first step to making a right choice is to compare and calculate. First, collect all the financial details of all the offers that suit your need and sit down to do the math. Consult an acquaintance, especially someone who has invested in property, to study details such as overall cost of purchase, riders and payment conditions, if any.

Many developers offer easy down payment options to push sales. But, some of these purchases might turn out to be more expensive than a non-offer buy. Only invest if the developer offers a real discount. If possible, keep a rate card of pre-festival rates and compare with the offer rate.

“Check the developer, his projects and delivery timelines of the construction company that is being used. Do not go by the offer only,” advises Ankur Dhawan, Chief Business Officer (Resale), PropTiger.com.

Bank-approved offers

Along with easing prices, developers also offer ease of home ownership during festive season. In this case, the developers get the banks to appraise their homes and projects before purchase. This means that banks have already done due diligence of the developer and project. It will cut down the processing time for a loan, if you choose the same bank.

Go for home loan combos

In spite of a rate cut of 50 basis point (bps) announced by Reserve Bank of India (RBI) Governor Raghuram Rajan, not many banks have been generous with interest rate cuts for home loans. For instance, State Bank of India (SBI) cut its base rate by 40 bps, which is yet to reflect in their home loans. But, if the reports are to be believed, banks are not betting heavily on the health of the real estate sector. The cost of a home depends on the price as much as it depends on the interest rate. An affordable home may become expensive in the long run, given the current rate of 11 per cent. So, opt for home loans wherein banks tie-up with developers and offer a special rate for a particular project.

Negotiate well

Real estate developers are keen to close deals and up sales this festive season, after a two-year slump. So, negotiate well and get the best deal, as developers will be willing to go that extra mile to close the deal.

Make sure that you take advantage of the best offers available and buy your dream home at a good price.