The real estate sector turns to be the 2nd largest employer in India, after Agriculture. The housing sector alone contributes 5% to India’s GDP. India’s real estate is a major market segment and this tends to continue in the future. While the overall value of this industry was estimated to $67 billion in 2013 and now it is expected to rise to $180 billion by 2020.
These stats might be enough to please any buyer initially. And the rest work is done by those simply alluring infomercials, which promises you hefty returns by offering new and obscure way of investing in real estate. But, still there is a ‘big’ gap to be bridged, when it comes to execution of the final selling process of any property in the real estate world.
Firstly, let’s dig into the matter and find out why people don’t trust the builders usually!
1) The Ups and Downs of the Real Estate World: At times, it is touching the new heights, but then it comes rolling down. And of course, this generates fear among the buyers. For example, last year when Mr Narendra Modi led NDA government took the charge it brought a new ray of hope. The promises to aggressively promote affordable housing by the government once took the real estate prices on the heels of higher demand. On the contrary, there were severe fall down in the property rates have been observed in the past few years, across the major cities.
2) Starts with a Smile, Ends with an Experience (usually bad one): Often it is observed, whenever a house buyer get in touch with a property agent, things appear to be bit ‘rosy’ and prominent in the beginning. These agents emerge like a secure reason to buy the property. They assure you to buy the most appropriate house at the minimal price for you. And thus everything seems to be great. But in the latter process, when it comes to sanction of the property, they change just like the chameleon changes it color. Though, all real estate agents don’t sail on the similar boat, yet it is the biggest terror among the buyers today.
3) Discomfort with the Uneasy Allies: Investing in a property is not a mere thing. It costs you a good amount. And thus being a buyer, you would like to look at a number of options. Now, this can be a problem! They need to spend a fair bit of time, which after a particular duration sounds no more tempting to them. Then they start convincing the buyer to lower their standards or raise their expenses, which is really not acceptable to many buyers!
Besides the three common discussed, there are few other reasons like high inflation, high interest rates on home loans, etc. which contributes to the slowdown in property sales. As the prospective buyers have abstained themselves from investing in property, the builders nowadays seems to be battling a severe liquidity crunch. However, the smart sellers still manage to snap their buyers into action and yes, they are getting increased sales.
Now it comes, Being a Real Estate Builder How You can Create Trust in Customers!
Whatever the situation is, your efforts and honesty will never let you down. Before you start looking for the ‘short-cuts’ to success in the building the trust of your buyers, it is important to cater to their needs. In case you fulfill all their requirements, you are almost done with your objective.
Here is a sneak peek at some of the buyer’s expectations you need to live up to:
1) A Respected Background: It is something you have to put efforts in. A buyer’s research starts with this and they look for a builder with good reputation in past and present. Only then he decides to look for the future projects. Hence, maintaining a success graph of the completed projects, positive feedbacks, etc. will prove to be a sure and secure step.
2) Legally Approved: If you really seek for trust among the purchasers, then all your projects need to be approved by the government. The builder’s with ISO certification and approval from the state government tends to attract then buyers appreciably.
3) Builders Association: Buyers have a mindset that a reputed builder will surely be a member of Builder’s Association or a popular Trade Organization. Hence, if you are a part of such association like CREDAI or BAI, it is an added advantage for you. The reason behind people’s trust is that these organizations work on strict norms. And if a builder deviates from the set rules, the respective brand is marked under the blacklisted names. Hence, it’s pretty simple to trust such boards and association.
4) Banks can Help: Buying property is not that simple. It asks for a handsome investment, which everyone cannot afford so easily. Thankfully banks provide several loans to help in simplifying the process of buying. And therefore, the builders offering the pre-approved loan sanctioning options are becoming favourite. Hence, if you provide with easy financial assistance, you are helping your buyers.
Adhering to the above steps, you could possibly make a way through the tough times in the industry. In addition, you can expect the rise in availability of funds from both, domestic and foreign investors. And this will finally bring an end to the liquidity crunch!