Checking the builder's qualifications is likely the most challenging task you will face while purchasing a home. After all, few developers have a track record of completing projects on time and keeping their commitments in today's industry.
The situation has worsened in recent months as the industry suffers from a funding shortage as a result of weak sales. Even the most prestigious developers are having difficulty completing projects on schedule. The situation is critical, particularly in the Delhi National Capital Region (NCR) and the Mumbai Metropolitan Region (MMR), where 20% and 15% of projects are on time, respectively.
The
difficulty in choosing the right builders and developers
● The sheer number of developers on the market makes it more challenging for purchasers.
● While builders provide a broad number of reasons for the delays, consumers ultimately bear the brunt of the blame.
● As a result, it is up to them to conduct due diligence prior to purchasing. We'll show you how to choose the proper builder.
Here
is what you can do to choose the right team of builders and developers
1. COMPARE YOUR PREVIOUS RECORD WITH YOUR COMMITMENTS:
a. Many contractors want to be developers. That is where the issue begins. To learn more about the builders, visit the Registrar of Companies' website, as well as the developer's website to learn more about the management team and their experience. Many land aggregators or contractors are one-man operations, and they continue to experience difficulties completing projects on schedule.
b. Discover the answers to topics such as how long the developer has been in operation. Inquire about the work he's completed.
c. Was he able to do
them in a timely manner?
d. If there was a delay, find out how long it took and why it took so long. How many projects are still being worked on?
2. COLLECT INFORMATION ABOUT DEVELOPER'S FINANCIAL HEALTH:
a. In the case of listed developers, this information is there in annual reports. But in the case of unlisted developers, it is difficult to get this data and so you may have to ask the developer directly.
b. Due to the lack of strict regulations, builders use funds collected for one project for other projects. As a result, your builder may have acquired a loan in the name of the business formed to carry out a prior project, resulting in a debt-free builder-developer team for the current project. You must be careful about these facts.
c. It's essential to limit oneself to purchasing a property from financially sound developers. Also, take a look at developers who are publicly traded. This is due to the fact that their financial records are public.
3. DEVELOPER RATING:
a. The ratings take into account the track record of the builders and developers in executing projects as per specified standards and the ability to transfer clear titles within the schedule.
b. They evaluate developers based on their track record as well as their organizational and financial capabilities. They assign a developer rating on a scale from DA1 (Excellent) to DA5 (Extremely Poor) based on their performance on these characteristics (Poor).
c. A higher grade indicates that the developer
will complete projects on schedule and to the agreed-upon quality standards.