So we should buy now or not??..confused article:
I had a great time reading Tinesh Bhasin's article Does it make sense to buy a house now? and interesting, insightful discussion on rediff.comjoydip bhattacharya says that the article is confusing and don't give answer to the question "Should we buy now or not?" According to Harshavardhan NM it's Flip flop article and "author is not sure about whether "to buy the property or wait?"
For me, there was no 'confusions'. Because i was not looking for the answer. For me, "To buy or to wait" is not a question at all. As a real estate salesman, i know that the home buyer who actually books a flat, always follows his own personal and private time table. He looks 'inside' for the answers. He takes into account the market conditions but the timing is always his. This blog is for him. Where i share useful and interesting info about buying home. For example Mr. Ramesh Jogani's point.
A good opportunity to get the best deal:
However, if you need to buy and have already found a house that fits your budget, this could be a good opportunity to get the best deal. For instance, you can convince the builder to waive off the floor rise, get free parking and other amenities. "All these will add up to much bigger discount," says Ramesh T Jogani, managing director, Indiareit Fund Advisors, a real estate fund.I liked this point because Ramesh T Jogani plays important role in Flagship Infrastructure Pvt. Ltd., promoters of Blue Ridge Hinjewadi. Besides, newly reduced property rate of Rs. 3,500 per sq.ft. if you could 'convince the builder as Mr. Jogani suggests' you may be able to get the 'launching rate' of Blue Ridge Hinjewadi!
I think one should follow Mr. Ramesh Jogani's advice while negotiating the property rate at any project. With one small change.
Generally, when you visit the site office, salesman's first question is "What is your requirement? 2 bhk or 3 bhk?" Tell him what you are looking for but don't ask the property rate or start negotiations at this point of the meeting.
First, finalized the flat number. Tell him to keep it on hold and give you some time to consult your spouse, your astrologer and your neighbor's wife.
After second or third meeting, when the salesman is sure about your intention to book the chosen flat, start the property rate negotiations. At this point, the salesman is prepared to offer his lowest possible rate. But he will offer it only when you open your cheque book but hesitate to take out your pen to write the the cheque.
Keeping the cheque book open, you refuse to accept his pen because you are waiting for the lowest rate and not for the pen. When he offers his last best price, you take out your pen, ask for the piece of paper and instead of asking for the free parking and other things, multiply saleable area by the negotiated property rate and give your offer.
Now, it becomes builder's job to convince you to pay for the parking, floor rise, MSEB and the amenities. Ask any salesman, it's always difficult to convincing the property buyer to pay for these charges. So generally, he tries to avoid talking about these charges and focuses on discussing any property buyer's favorite topic, the property rate. You revers the game by playing his cards.
However, do not expect him to give up and accept your offer in this meeting. Salesman will tell you that he has to talk to his management about your offer. With a serious face, appreciate his professionalism and offer to give him a cheque of the booking amount to convince his higher authorities about your commitment. Certainly, the salesman will not accept your cheque because now, he is sure about your booking but not sure about his boss.
If you do this skillfully, may be in the next meeting, while accepting your offer, builder will convince himself whichever way he finds it comfortable for him and he will pat his back for 'getting' your booking!
Point is, when it comes to "convincing the builder," you have to accept that only he can convince himself. You can't! Even if you are from Infosys and your group has 100 members who are going to book with you!
You can create only a favorable condition and inspire (means compel - force) the builder to convince himself to accept your offer.
What is your take on the property rate negotiations?
As a real estate salesman, i find it difficult to understand how property rates can come down by not booking and waiting for 6 months or for an year or 2!I have seen that property rates went up because people kept on paying increased rates. As more they paid, rates increased more. Same way to bring down the rates, property buyers have to negotiate and book at a lower rate.
What do you think? What is your experience of property rate negotiations? Please, share your views in the comments. (Comments Policy)
What is the ideal Price in a city like Pune?
joydip bhattacharya has raised this question. He says:Can someone tell me what should be ideal price in a city like Pune.....
Not at all a Metro city...
Poor infrastructure compare to city like Chennai,Delhi.
poor Air connection.
very high price
very much dependent on Mumbai for many aspects.....
With my understanding here a 3 BHK flat(around 1450 sqft) should not be
Baner : 28-32 Lacks
Aundh : 28-32 Lacks
NIBM : 25-30 Lacks
Deccan: 40 Lacks
Kothrud: 32-35 Lacks
Kalyani Nagar : 30-32 Lacks....
all of puneites input is requested
I think, you will like Arun Srinivas' answer. He says:
I was surprised to find that prices in Pune were much much higher than that in Blore. Even the rentals are higher in Pune. My estimate is as below:
Baner: 20-22 Lakhs
Aundh: 22-25 Lakhs
NIBM-Kondwa: 20-22 Lakhs
Deccan: 28-32 Lakhs
Kothrud: 22-28 Lakhs
Kalyani Nagar: 22-25 Lakhs
If Baner is 20 -22 Lakhs then Kothrud can't be 22-28 Lakhs. Kothrud should be 40 - 45 Lakh! Why? Because, i stay in Kothrud!
Point is, property buyers' perception plays important role in deciding the property rate of the area. But we give all credit to the builders! What say you? Don't you think we should honor the property buyers too? Please, share your views in the comments. (Comments Policy)
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