5 Tips To Verify A Builder’s Credibility and Reputation Before Investing in Property

The reputation of a builder is possibly the most important factor that every homebuyer considers before selecting his/her dream home!

On many occasions, a home buyer's fantasy is dashed when the words are not kept. The promised amenities are either not provided on time or never provided by the builder, which is why you must maintain your brand name when tending to properties.

After all, buying properties is a significant lifelong investment. You don't want to take any chances. Therefore before investing or selecting a builder, learn more about their standing and reputation in general. But before that, it is important to learn why a builder’s reputation plays a key role in your property-buying journey.

Why should you take a builder’s reputation seriously?

Today, the reputation of builders is crucial in real estate. As the industry boasts a large number of builders in tier 1 & tier 2 cities like Bangalore, they are vying for a larger share of the market. As a prospective buyer, selecting the best builder in Bangalore or analyzing the builder's reputation might be difficult.

The RIGHT builder will make it easier for you to obtain your ideal property or home, which is why choosing the right builder is critical. The builder is the person or firm in charge of providing you with your dream home.

5 steps to determine a builder’s credibility

If you are considering purchasing a new home, do not rely solely on the statements made in the brochure. Much is dependent on the builder's expertise, resources, and to a large extent, the name and credibility in the market.

Here is the list of some vital checks you must conduct before finalizing a residential project like a 2BHK or 3BHK in Sarjapur, Bangalore.

1. Ground report

You can run a quick Internet search by typing in the firm name, as customer forums, blogs, news reports, property sites, and so on generally include a wealth of information. However, conducting field research is still a smart idea. Speak with customers who purchased flats in previous projects as well as local brokers. The current market value of previous projects in contrast to peers in the same neighborhood is another indicator of the builder's standing. You should also look into the credentials of the contractors involved in the project.

2. Track record

It is safer to purchase from an experienced builder with a strong track record since he is more likely to have a more professional approach, with systems and processes in place. You can also look at his track record to see how successfully his previous initiatives were executed. Remember that a lack of transparency is a sufficient reason not to purchase. A reputable builder will also be a member of a trade organization, such as the Confederation of Real Estate Developers Association of India (CREDAI) or the Builder's Association of India (BAI). These are self-regulating bodies with strict building standards, and any departure may result in the company being banned by the association.

3. Reviews and Ratings

Online evaluations and ratings will provide you with more information about the builder's advantages, disadvantages, and problems. The difficulty here may be distinguishing genuine evaluations from those generated by the builder's public relations firm. A careful eye would aid you in ticking off the reviews from actual buyers. After reading the reviews from genuine homebuyers, you will have a broad and clear understanding of the real estate development firm and its reputation. With a clear picture of the builders, you can handpick a bunch and choose the one that feels perfect.

4. Layout plan

You must verify that the project layout plan has received all approvals from the Municipal Corporation's relevant authorities. Buildings constructed in an illegal layout will not be permitted to inhabit, and penalties will be imposed per Municipal Laws. Roads, drainage, and street lighting will not be extended in such locations.

Requesting a copy of the No Objection Certificates (NOCs) from several departments such as fire, pollution, water, and power is one approach to check this. You should also get a warranty for the construction quality, as many builders today are sacrificing quality because of rising labor and raw material expenses. All construction in India is done under the National Building Code (NBC). So keep an eye out for this material as well.

5. Financial stability

Is the firm overleveraged? Take a look at the company's balance sheet, and if it has too much debt or is unable to repay its loans, cancel the project. Some of the listed builders publish their financial information on their websites.

You can contact the relevant Registrars of Companies (ROC) office for more information. The information is also available on the Ministry of Corporate Affairs website (www.mca.gov.in/).

Log in and register to access all firm documents in the 'view public documents' area. The site will request information such as the company CIN/FCRN, registration number, and ROC details, which should be readily available from the corporation or can be found through a Google search.

Check the cash flow statement as well (not the income statement). Companies with robust cash flows are more likely to finish projects on time.

Conclusion

While these are the characteristics of determining a builder's reputation, you must also conduct due diligence on the project and review all essential documents to make a safe and profitable investment.

If you are looking for homes built by the best builders in Bangalore, check out www.manaprojects.com. You will get the best range of ready-to-move flats for sale on Sarjapur main road, upcoming apartments in Sarjapur Road, and under-construction luxury flats in Sarjapur.