Real Estate investment always brings lucrative benefits. It has been seen that over the last 50 years investment in the real estate sector is escalating and the popularity of real estate investment is becoming one of the preferred investments among investors. So, before finalizing any property you must need to know about the builder’s reputation and background.
Given below are 5 ways to check a builder’s reputation
Internet search is the solution for every problem, and as the world is in an updated phase, people are quite active in social media; there are higher possibilities that you can find valuable data or information easily about a builder, their past records, reputation and all.
Although, it is quite easy to gather info on the internet, you can gather more information by talking with their previous customer. Because their review on a current home where they are living can reveal a lot. In addition to this, you need to gather some info about the current market price of the past projects in comparison to peers that are in the same locality which indicates the builder’s standing. Also, check the credentials of the contractors associated with the projects.
It is good to buy property from an experienced builder with a good delivery record. Such kind of developers always keeps a professional approach with systems and processes up and running. Apart from this, you can check his previous record and get some information about how well the past projects have been executed.
Clear transparency is a good sign to okay a property and if you are not finding any transparency then just move on. A reputed builder will also be a member of the industry association, such as the confederation of Real Estate Developers Association of India (CREDAI), or the Builder’s Associations of India (BAI). These organizations are self–regulatory bodies that follow strict norms for builders any deviation may lead to the company being blacklisted by the association.
Check whether the company is overleveraged, and for that, you can check the company’s balance sheet and there you can get the clue, whether the company is under serious debt or not. By doing this, you will get to know that, there are any loans left that the company did not pay yet or is unable to pay further.
Some listed builders put up their financial details on their website but in case if you did not find any info about the balance sheet then you can concern to the registrars of companies ( ROC) office or visit the MCA website where you will get the complete details. Check the strong cash flow of the company if it is giving positive info then there are possibilities that the company can complete the projects on time.
Before investing in a housing project it is essential to check The International Organization for Standardization’s 9001:2008 certification criteria for a quality management system. According to this system, there are many principles such as quality should be customer focus and satisfaction.
So it is necessary for a builder to be ISO 9001:2008 audited and certified, they are more professional in approach and you can expect timely possession for the residential property.
Reality Ratings by Crest (Crisis Real Estate Star Ratings)
Crest started in 2010, it provides city-specific assessments of real estate projects where you can compare and classify quality projects in a particular city. The Crest has National Developer rating list which can tell you a developer parameter such as their past records of maintaining legal and construction standards and timely project completion.