How To Check Builder Reputation
1. Project quality:
Inspect the builder's previous projects during actual site visits to determine the construction quality. This will give you a better idea of the builder's raw material efficiency, the standard of interior and exterior work, parking, and open green spaces, such as the park and club area. If time allows, check more than one project.
2. Checking a person's reputation and background:
You can do your own research on the internet. Visiting a completed project where people have already moved in would enable you to learn about daily life in the building and any water or power issues directly from the residents. You can also hire an advocate who can undertake a complete verification of the builder via banks, broker and builders’ association.
3. Word of mouth:
Make a list of friends and relatives who have recently invested in the property market and ask them about reputable builders, famous ventures, details you can seek about the project, and any roadblocks you might encounter during your quest for the perfect house. This form of cross checking will give you unbiased information about a builder, which a broker might not be able to give you.
4. Design plan:
You must ensure that the project layout design has received the necessary approvals from the Municipal Corporation's concerned authorities. Buildings constructed in an unapproved style would not be permitted to be occupied, and fines will be imposed in accordance with municipal laws. There will be no new roads, drainage, or street lighting built in these areas. Requesting copies of No Objection Certificates (NOCs) from different departments such as fire, pollution, water, and power is one way to verify this. You can also get a guarantee for the construction quality, as many builders today are cutting corners to save money on labour and raw materials.
5. Part of Builders Association:
Check if the builder is a member of organisations such as the Builders Association of India (BAI) or the Confederation of Real Estate Developers Association of India (CREDAI) to ensure the builder's credibility (CREDAI). You can also see a list of CREDAI-registered builders here. The majority of government agencies have an ethical code of conduct that all members must adhere to. Despite this, you have the choice of filing a lawsuit or a complaint with the redressal cell of these bodies if the builder engages in deceptive practises. If a crime is ever committed, the organisation could be blacklisted.
6. Schedule of delivery:
It's important to avoid investing in a project that could be delayed. Investing in a designer who does not have a reputation for completing more than two projects at a time is one way to ensure this. This may result in a reduction in the quality of your project's construction.
7. Transparency in an apartment's usable space:
To prevent any misunderstanding, you must consider the difference between a flat's usable area and the built-up area. The protected area is typically 30% less than the super-built area.
8. Appreciation percentage:
The amount of appreciation you see on a specific investment reflects the project's market demand. Websites (such as this one) and brokers will help you monitor the appreciation rates of a specific neighbourhood or project. This will also assist you in determining future goals.
9. Vacancy rates:
While this can be difficult to determine, market analysis from brokers and residents of an occupied project can provide you with information about a project's vacancy rates. The vacancy rates would be lower if the builder is well-known for its high-quality building, reasonable prices, and timely delivery. However, if the contractor has experienced negative customer sentiment, the vacancy rates of previous projects would be strong. Be sure to look into the reasons for high vacancy rates, as buyers looking for rental yield can be disappointed in the end.
While these are the criteria for determining a builder's reputation, you must also conduct due diligence on the project and review all relevant documentation in order to make a secure and profitable investment.