Introduction
In today’s blog, I will attempt to give my readers some parameters based on which they can compare the different properties in the market.
Most real estate purchases are considered high involvement goods that require complex decision-making.
The stakes are high for most and fear of making wrong decisions hangs on the head.
Social pressure and peer pressure also plays a part in one’s decision making while purchasing a property.
A purchase act is preceded by a sequence of actions. Cognitive functions form beliefs, an emotional component develops positive or negative attitudes and inspires a reaction through motivation to select and buy.
Most people I have worked with do not take an analytical approach to purchase, They take an emotional approach.
I have hence prepared some comparison points that can be easily measured and compared. The emotional factor in purchasing decision has not been considered for the purposes of this blog post.
I am planning a new blog post on the topic soon.
When I say emotional factor I mean instances when a product just clicks with some people for no apparent reason. The project may be expensive or may not have a great location but one likes it instantly.
Anyway, I have come up with the following parameters based on my experience but I may have missed some.
If you can think of some other parameters kindly drop a comment below and I will edit the post and add your suggestion.
1. Compare properties for per square feet rate on the covered area
Price comparisons are the most obvious and the most important comparison for the majority of home seekers. It is only natural for a consumer to do this.
The right way to compare in my opinion is to compare the covered area of the flat. Not the carpet, not the super but the covered.
The covered area includes the carpet area plus the balconies.
This, in my view is the best indicator of the value for money component of an apartment.
Once you have identified the per square feet rate you can ask the respective builder for an explanation as to why the rate is higher than others for example.
Construction costs are pretty similar for all builders except for some newer forms of construction. You are well within your rights to ask for an explanation if you feel the cost is high.
A smart salesman will tell you that construction cost is not the only qualifying factor that decides the price of a unit. 🙂
2. Location
Location is one of the most important factors while choosing a property. Comparing 2 properties on location is purely a personal choice & really difficult to quantify.
However, there are some factors that you can quantify. Compare two different locations on the following points:
- Compare the distance and the routes for your workplace, markets, hospitals, schools and other important landmarks that you regularly visit
- Compare the availability of public transport in your locations
- Compare the future development proposals in and around your locations
- Compare the traffic and pollution around your area
- Compare if any factories or foul smells are around the locations
- Compare the severage, cleanliness and parks in the locations.
3. Compare properties on amenities
My view is that when you purchase an apartment you purchase not just a house but also the amenities and the location.
It is really important for me to have a park where my kid can play. I’d also like to have a gym inside the premises so that I don’t have to go too far.
So you can compare projects based on current and future amenities according to your tastes.
You can prepare an excel sheet easily for this purpose. Amenities will play a very important role after you have moved to society and will improve the quality of life for you and your family.
4. Builder profile
Often overlooked, a builder’s profile is one of the most important comparison points while purchasing a property.
Here are a few things you should enquire about and compare when comparing two different products:
- A builder’s past record of timely and quality delivery
- The maintenance and the general upkeep of the delivered societies
- Google reviews for the past products
- In case of a dispute, how has the builder behaved in the past
- The general market feedback for the builder
The past record is important because it highlights the intentions and the true nature of a builder.
A builder who has a bad past record is unlikely to behave any better in the upcoming project. If he has done it earlier, he will do it again.
Choose properties with builders that have a reputation for quality and good behaviour.
5. RERA Certificate & SBI Approval
As a customer, one of the easiest things to do yet one of the least used tools is the Punjab RERA website.
You can easily check the project documents and the approved map on this website.
Every real estate project in Punjab has to register and fulfil certain basic conditions under RERA. The authority then issues a RERA number to the developer.
You can check the project documents easily on the website.
While comparing different projects I highly recommend that you check their details on the above website and check if the builder is delivering as promised to the government.
Another very good parameter that is an indicator of all is well is SBI approval. SBI generally has very strict rules for approving property loans and if a project is approved by SBI, It is considered safe. (Disclaimer: This is not a legal opinion)
Now that I have listed some comparison points to compare, Let me list a few things that should not be a major factor in your decision making.
I write this because I have noticed people missing the woods for the trees.
3 things to not compare properties on
- Do not compare the properties based on how much kitchen equipment, false ceiling etc is provided.
- Do not compare discounting. Different companies have different discounting policies. You may miss out on a good property because you might set yourself up for unrealistic discounting by comparing different projects.
- Do not compare an under-construction project to a ready to move project.
I hope this blog has provided you with some good tools to start comparing properties. We all know the above points but it is important to put our thoughts in writing so that reason trumps emotions and we do not regret our decision.
