Friday, November 2, 2012

Why pick dealers ahead of builders for property transactions

Dealers or agents are not the product owners and they earn commission on selling the products of others. They operate locally and are closer to the market. When you look for purchasing a property, you would invariably turn to the dealers to know what are the various options available for sale in the market. It is the dealers who can give you the first leads since the sellers of the properties approach them with their requirements. There are certain benefits of buying the property from the dealers even if it means paying them the commission or getting lesser discounts on apartments like BPTP Resort Faridabad.

At first, a dealer has a wider range of options of properties. If you approach a builder, he will only be interested in selling his own inventory and would not be giving any other option. At the most, the builder would give you the option of investing in some other project at a different location being developed by him. But, you shall never expect him to show you the way to the other builder. This is what the dealers can do. They are in a position to show you properties from various builders out of which you can make a selection of the right one.

Second major advantage is that for the under-construction project which is still not completely sold out yet, the dealers would be able to tell you which party is willing to quit the investment and sell the property at cheaper than the market rates. When you approach the builders, you might be offered the new flats for buying which brings them more revenue. The builders might not mention about the resale flats on offer.

Third benefit is that the dealers usually operate in a particular area and know the locals in the area quite well. By virtue of their understanding of the market and their relations with the locals, they are in a better position to bring more sales from their area. A builder might be developing a new project in the area such as the BPTP Resort and therefore, might depend on the dealers for using its reputation to effect the sales.

Fourth, the customers can themselves move around to the offices and projects of the different builders to get the details of the projects and prices. But, this will bring more hassles and could be a tiring exercise. Further, you might not be able to get information about those projects which are located far off. It is the dealers who provide the single stop solution to help you search the right properties you want. After short-listing a few properties and leaving out the others which are not suited for your needs, you might undertake a visit to see these in real which will save you time and effort.

Reasons for price appreciation in real estate in the Greater Faridabad region

For the people who would have come to the Greater Faridabad region about three or four years back, when the projects were still in their infancy and not much of construction activity was visible, there is an element of surprise in store as more and more of the buildings have started dotting the skyline. The initial scepticism of the people pertaining to the development of the region fast enough to be worthy of investments has now been replaced with the certainty of growth and development. This is one of the contributory reasons for the rise of prices of the real estate projects such as BPTP Princess Park.

The 2 BHK in BPTP Princess Park, which was priced at the time of launch at Rs 18.27 lakhs has now risen to almost the double that amount, at Rs 39.15 lakhs. This price rise is not unique to the BPTP Princess Park Price List but can also be found in the price lists of most of the other societies. Some of the main contributory reasons for this appreciation can be better explained at the project level as well as the regional level. While at the regional level, the increase in demand is playing a chief role, at the project level, it is the features of the project which determine the further appreciation of the prices of the units.
Let us first look at the factors at the project level, which are influencing the prices of the residential units. The brand name of the builder, the amenities provided, the spaciousness of the residential units, the nature of fittings and fixtures and the overall ambience of the units as well as the project, determine the extent to which the price appreciation will happen for a particular project. The projects of reputed developers always command a premium and there is more rate appreciation for them, even if it is a marginal increase.

At the regional level, it is the locational advantages, the development of infrastructure facilities such as electricity, water, sewage, telecommunications and transportation and the external environment (such as the government policies) which chiefly determines the price increase since these directly affect the demand levels.
It has been seen that the extent of regional development is the main contributing factor for the price rise of the real-estate. The project level differences in rates are marginal across different properties. So, if the government initiates steps to boost the infrastructure for quick regional development, the demand levels pick up since the people expect better returns from a fast developing region rather than the one which has not been developed.

So, for the Greater Faridabad region, it is the commitment shown by the government for developing the infrastructure that has resulted in increase in the prices of project units. The fact that the 2 BHK in BPTP Princess Park is spacious and aesthetically appealing is a less important reason for the price hike.