A festive day of shopping, merriment and new beginnings.
Real estate experts explain that there are several reasons why purchasing a dream house now could get you a better bargain. According to Devang Varma, director of a city-based real estate firm, most developers do tend to be a bit flexible about the property pricing when demand is low. “During the slowdown, customers tend to bargain harder. Developers who have a price spread, become a bit flexible at times to close the deal,” he says.
According to Varma, offering freebies add up to the cost of the discounts that the developer offers to make the deal a bit more attractive.
“So you would have builders offering incentives like a car park at a preferential location or a stamp duty and registration charge included in the price that they would be offering to the customer. These factors ensure that the deal is closed fast,” he adds.
While developers are eager to sell off their unsold inventory, even brokers are equally keen on financial transactions during a slowdown.
“In top metros like Mumbai, the sales of residential properties have come down. So many estate agents, who solely rely on brokerages for their livelihood, tend to become aggressive and try to convince both the parties concerned to become a bit flexible on the rates,” says Yashwant Dalal, president of Estate Agents Association of India.
Dalal adds that when demand for houses are low, brokers also show a realistic picture to the seller that sales won’t be possible if he is firm on the asking price. “Plus as the stock of unsold inventory is also high, the buyer has a lot of options to choose from,” he reveals.
How can you be assured of a good bargain during a slowdown?
Property movement would be slower resulting in huge stock of unsold inventory Developers would be keen to dispose of old inventory and won’t mind offering decent discounts Real estate brokers would be relatively free due to lower sales and can help you strike a good deal Any new launch would mean an addition to the stock of unsold inventory, which would prompt desperate sellers to lower their asking price With lower demand for credit, banks too would be keen to offer preferential rates to the potential buyers for their home loan.
Credits ET Realty