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Do your due diligence before buying property online

As real estate players line up plethora of discounts for online realty buyers

Tinesh Bhasin  |  Mumbai 

Do your due diligence beforebuying property online

Buoyed by the success of its previous sale during the festival season two months back where over 9,500 buyers registered on the website, Snapdeal has launched another online shopping festival that showcases over 100 properties from all over India.

Most discounts are straightforward discounts on the selling price. A buyer can get a discount of up to Rs 2 lakh on Sunteck's City Avenue 1 project in Goregaon West in Mumbai that selling at Rs 16,500 a square foot.

Ruparel Realty's Primero at Tilak Nagar in Mumbai offers discount up to Rs 2.3 lakh that's selling for Rs 12,600 a sq ft and starting at Rs 85 lakh.

In Bengaluru discounts range from Rs 100 a sq ft to Rs 900 a sq ft while in Delhi NCR there's Rs 175 a sq ft to Rs 435 a sq ft. There are also pre-launch offers and some just offering gold coin or the latest iPhones.

The sale is targeted towards buyers that are holding on to their cheque books waiting for prices to correct. Snapdeal says that the sale can help buyers to get the units at six to eight% lower than the market rate.

After short listing the project, the buyer needs to pay a refundable token amount that ranges from Rs 299 to Rs 10,000. Once the buyer pays the booking amount, he/she they will need to take the transaction offline with the developer.

Kishor Pate, CMD - Amit Enterprises Housing, says that internet marketing outreach has become an inalienable and highly effective part of most developers' overall marketing programme; purchase inquiries triggered online can account for as much as 25-30% of the total annual sales tally.

Ashwinder Raj Singh, CEO - Residential Services at JLL India, says that such online marketing is by far the most cost-effective marketing tool that allows the developers to communicate faster and more efficiently with prospective buyers.

However, it is impossible to understand the real value proposition, says Singh. Also, it may not be possible for the buyer to bargain with the developer, which every consumer, regardless of financial strength, expects.

That's why experts say that buyers should not get lured by the discount. Consumers may get a good price but it's not similar to buying electronics or clothes online. A house is the life's biggest purchase for most.

Experts say that buyers should physically go and check the property and due their due diligence. They need to take the legal opinion, check whether the projects are accredited by banks, whether the carpet area of the flat meets their expectations, and the compensation a developer is willing to give in case of delays.

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First Published: Tue, January 19 2016. 13:58 IST