Ready Reckoner for Home Buyers

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Nimesh Bhandari, Chief Marketing Officer
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Home Buying A Lifetime Decision!

• Home Buying is one of the most complex buying you
  will undergo in your life
• Typical Home Buying cycle may span from 1 year to
  6 months
• Home Buying will have both short-term and
  long-term implications so proper planning
  guidance is must
• Keep a buffer for unknowns before making a final
  decision school change, job change, location
  change

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Define your Requirement

• Before you start your house hunt define your
  requirement very clearly
• Investment or Stay
• Ready-to-move-in or Under Construction
• Required Configuration (2bhk/3 bhk)
• Budget Upper cap Lower Cap
• Your taste Amenities, floor plan, fixtures
• Use your best case judgment in case the long-term
  situation is not clear
• Investment or Stay Consideration of
  appreciation of property/area paramount
• Pre-Approve your loan. SBI Always the best

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Identify your preferred location

• Identify the boundary of preference
• Area close/equidistant from office and school
• Self sufficient area
• Proximity to Railways, Airport
• High growth area potential of large office
  spaces
• Identify 2-3 Alternative areas
• Future benefit of stay
• Upcoming school / office spaces

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Ready to move-in vs. Under Construction!

• Buying from Builder vs. person
• Buying from builder less hassle free (legally)
• Factor in delay in possession from builder
• Current Free Cash Flow vs. Future Cash Flows
• Higher initial amount (on top of loan)
• Additional immediate expenses registry,
  furnishing
• Do the Math
• Rent paid vs. Interest differential as loan
  disbursement immediate in ready-to-move-in
• Factor in delay in possession
• Legal Expenses Higher in Ready-to-move-in

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Create Exhaustive Pipeline

• Do extensive Online Research
• Typical property prices in locality
• New launches in locality
• Compare properties online
• Select properties which matches your criteria
• Project / Builder Check
• Call Builder - Get more information about price,
  additional charges, loanability
• Look for builder reviews / past project
  deliveries online
• Eliminate properties which do not meet your
  criteria

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Be Ready for Site Visit

• Fix an appointment
• Call builders and fix an appointment for site
  visit
• Have all decision makers ( wife etc.) be part of
  site visit
• At the site- Check for construction quality,
  pace of work
• Sample flat Be wary of interiors. Double check
  what all you would get as part of completed flat
• Check for Open spaces, green area, efficiency of
  flat
• Check for all additional charges. Negotiate on
  rate
• Survey the surrounding area nearby schools,
  market, building
• Eliminate flats which do not fit in your budget
  and requirement

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Create your Kiss list

• Have a list of 4-5 can-buy projects
• Visit past projects from these builders to check
  construction quality
• Estimate growth/investment potential of all
  projects
• Compromise vs Comfort Think about the long-term
  impacts of compromising?
• Price vs Appreciation. Think Long-term
• Do a hygiene check of preferred properties
• Sanctioned / Bank Approval
• Should not be near railway line, sewage etc.
• Approach road if not good, plan in place

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Bank Loan Delve into details!

• Bank Loan
• SBI Low Interest vs. speed.
• Preferably go with banks who have approved
  property
• Branch of loan issuance some states have
  additional stamp duty ( Noida vs. Delhi)
• Loan always floating (x PLR)
• Negotiate on rates (x). Talk to branch manager
• Go for EMI with principal deduction (even at part
  disbursement)
• Opt for loan insurance
• No penalty on early repayment
• Term lesser the better

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Zero in your Dream House!

• Look at the payment schedule
• Construction linked preferable
• Subvention scheme - If you think builder can
  deliver on time. Do the math!
• Zero in your dream house
• Analyze and summarize
• Compare on Comfort, Appreciation Potential,
  Construction quality, Location
• Weigh and Give marks
• Believe in your Gut!
• If ready-to-move-in, hire a lawyer and get
  documents checked

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Final Deal!

• Final negotiation
• Car parking -Take additional. Price negotiation
• Lumpsum discount on booking. PLC Waiver
• Legal Check
• Read the Builder buyer agreement carefully
• Read Bank loan agreement clearly
• Hire a lawyer must for secondary purchase
• Go through terms related to Club charges,
  maintenance charges, generator charges, car
  parking
• Read through flat specifications and dimensions
• Penalty clause of builder on delayed delivery
• Book your flat and have a peaceful sleep!

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Document Check Secondary Purchase!

• NOCs
• NOC by bank if current owner has taken a loan
• Loan closure certificate from another bank if
  loan was transferred
• NOC and no-dues from the RWA
• NOC from Builder of no-dues
• All previous receipts paid to Builder
• Property Registration document/ Deed
• Letter of Allotment by Builder to seller
• Id proof of seller, PAN Card of Seller

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Negotiating a Secondary Purchase

• Know the current rate in the area
• Understand the reason of selling of seller
• Clarify all additional expenses apart from house
  price legal, registry, NOC etc.
• Have clear understanding on what you will bear
  and what the seller will bear
• Inspect the flat and evaluate the cost of
  fixtures, cost of refurbishing the house
• Have everything documented. Have a witness before
  you give initial cheque.
• Get your buyer-seller agreement vetted by lawyer

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Dos and Dont - Interiors!

• Do the furnishing, electrical, plumbing first and
  then go for paint
• Furnishing Dont use inferior plywood in order
  to save cost
• Contracting better if you have no prior
  experience Give contract to plywood supplier
• Split AC Arrangement Call for an expert
• Inspect and make all necessary arrangements for
  appliances in next 1 year
• If termite treatment to be done do before
  paintwork
• Paint Get putty done for long last if walls are
  not smooth
• Tile work Not every expensive and gives
  additional beaty to your house
• Bathrooms make sure that tiles in bathrooms are
  skid free, For shower cubicle use toughened glass

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About RealtyCompass

• Realtycompass.com is the India's first ever
  property search engine facilitating consumers to
  search each and every project in their city. It
  is present across 5 cities in India, and expects
  to launch in 10 cities in next 6
  months.RealtyCompass is a team of 25 bright
  people comprising of people from premier
  institutes (IIT, IIM, CA). We are rapidly
  expanding and looking for young talent. 
• Built on a simple idea of providing consumers
  with accurate and exhaustive project listings in
  the city, RealtyCompass is a unique offering for
  both consumers and builders.

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The Proposition
Consumers
A Comprehensive Platform for consumer to search
every project in his city and buy a right home _at_
right price by reaching out to builders
Builders
A pay-per performance platform for every builder
to reach out to his target audience with very
high conversion ratios
Indias first ever Property Search Engine
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The Current Market Gap

• Problems faced by home buyer
• Unavailability of single platform with exhaustive
  list of every new project
• Outdated information leading to high search cost
  for consumers
• Elimination of projects based on information
  available online
• Problems faced by builder
• High cost of acquisition of leads
• Absence of pay-per-performance marketing medium

No efficient marketplace to address the needs of
consumers and builders
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The Solution

• Create a Market-place where the information is
  accurate and current
• Dis-intermediate brokers, by creating a connect
  between builders and brokers
• Simplify Online House Search by capturing
  value-added data of projects/builders past
  projects, common area, construction quality
• Help Builders reach to right audience by creating
  a transparent marketplace

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Our Philosophy

• Provide Consumers with exhaustive and accurate
  information to help them make informed decision

Our Philosophy is echoed by.
Provide Consumers with exhaustive and accurate
listing of restaurants
Provide Consumers with exhaustive list of
hotels along with consumer ratings
Provides Consumers with exhaustive list of
service providers with consumer ratings
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Thank You !