 "Compare festive housing offers and resale rates to ensure authenticity")
During the festive season, which lasts from October to December, the ‘feel-good’ atmosphere often encourages potential homebuyers to take the plunge. Developers make attractive offers during this period to nudge the fence-sitters.
What’s being offered?
A variety of incentives are being offered this year. The simplest is the direct discount on property prices. “When one visits a site, developers are ready to offer nominal discounts of Rs 100-200 per sq. ft. on the base price,” says Santhosh Kumar, vice-chairman, ANAROCK Group.
Some developers are offering flexible payment plans, subvention schemes, Goods and Services Tax (GST) waiver, stamp duty and registration fee waiver (full or partial), floor rise charge waiver, free car parking, and so on. Some are offering home automation systems, modular kitchens, white goods (like air conditioners), and home furnishings for free.
Freebies like gold coins, iPhones, and overseas vacations are other enticements.
Better than last year
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This year’s offers are better than last year’s. “Sales are around 10-15 per cent less compared to last year’s festive period. Due to high prices, there has been a drop in demand and hence on-site deals are being offered by a few developers,” says Kumar.
Larger reputed developers, he adds, do not see much of a need to sweeten the deal since demand remains reasonably strong for them.
Whether an offer is made also depends on pricing. “Developers who are offering products at market rates, and not above it, are able to book sales despite not giving offers,” says Pradeep Mishra, founder, Homents.
Conditions attached
These offers typically come with terms and conditions, which buyers must review in detail. “Often, these special schemes are available for a limited time, or may apply only to specific projects, or to specific payment plans,” says Vikas Wadhawan, group chief financial officer, Housing.com and Proptiger.com.
Don’t let the tail wag the dog
Experts say the property, and not the offer, should take primacy in decision-making. “Assess the property in terms of type, size, location and price point, and whether it fits into your budget. If it checks out on these fronts, one may consider the accompanying offers,” says Kumar. Project quality and the developer’s track record are other key criteria.
Next, check the pricing. “Survey the area and find out the secondary market rate for a similar property. Compare it with the developer’s price. It should not be the case that the developer jacks up the rate and then makes an offer,” says Mishra.
The value of the offer should be considerable. “It should be at least 1-4 per cent of the property value to be deemed meaningful,” says Rathi.
According to Mishra, the best type of offer is a clean discount on the property rate. Wadhawan recommends going for financing schemes, like relaxed payment plans or subvention schemes, which ease the burden of payment.
Mishra is of the view that offers which reduce your overall cost of purchase and doing up the interiors are better than those that have no relevance to the property purchase (like a foreign vacation).
Whichever offer you go for, make sure it is properly documented. “Go through the terms and conditions and understand them fully. You should not miss out on the offer because of lack of due diligence on your part,” says Wadhawan.
What to heed about these offers
Flexible payment plans: Usually developers ask for the last tranche “on application of OC”; ideally, it should be “on offer of possession”
Subvention scheme: Is the interest cost loaded on the price of the house?
Floor rise charge waiver: Is the building fitted with a high-speed lift?
Guaranteed exit after few months: Avoid any broker who makes such an offer
Modular kitchen (other interior items): Does the developer’s offer suit your tastes, budget, etc?