How to check builder track record before investing in a project

Tips to keep in mind before you decide to choose to Invest in Real Estate

If you have decided to invest in any real estate project no matter residential or commercial, so what is the first thing you should do?

Yes, you should check the builder track record first.

Before investing such a huge amount in something, you should crosscheck the credibility of the source. As we all know, safety is better than cure, so be sure you are investing for a right and trustworthy project or not.

Builders are an important part of the real estate sector and play a vital role. Nowadays, a number of small builders or real estate companies have joined the battle to grab a share of this promising market and some of them are not even doing their jobs legally. As a result, prospective buyers often get confused about choosing the best and authentic builder.

Like SV- housing, one of the most authentic builders in the town, which has set the benchmark for all the builders in Gurgaon. Four decades ago, SV Housing founded and it was etched on stone with a mission to revolutionize the future of the construction industry. SV Housing delivers a range of real estate services including Project Management, Property Management, Leasing & Sales, Contracting, Asset Management, Architecture, and Design & Construction.

Go with the ‘right’ choice

You can hear of many cases where the dream of property buyers is crashed when the words are not kept and promised facilities are either not available in time or ever. Building a home or an office is a major investment of a lifetime, and you would not want to take chances, won’t you? So, before investing or choosing a builder, you need to know more and more about your builder track record.

Real estate has always been considered a good investment which is able to give you a steady income as well as tax savings if you choose to finance your purchase. The right builder will help you to get your dream property or home in an easy and right way. Therefore, selecting the right and authentic builder is important because the builder is the person/supplier who builds your dream home.

Selecting the ‘right’ builder can be a tricky and tough task because if someone is on the ground to fool you, they must have prepared hard to look like the ‘right one’.

Here, we are going to discuss all the possible points to make you aware of how to check builder track record before buying any property-

Site visits:

This activity should be the first thing to do after you decide a builder to deal with. A builder's quality can easily be gauged by visiting his past projects.  Maybe this would require some tiring legwork but would definitely benefit you in the end. Usually, projects from the same builder and in a particular financial bracket are of similar quality. Visit all the possible completed as well as under-construction sites to get an idea of the professionalism of the builder. Also, the builders get construction outsourced from a different company a lot of time. In such a case, you should investigate the company’s record in terms of the quality of construction.

Prefer those builders which give you a chance for a proper site visit too, like SV- Housing. SVH gives you as many visits you want along with a time to time construction update so that you can get assure of what is happening.

Transparency involved:

Here is the secret to getting wise, you should always ask the builder to provide information regarding his past projects, actual costs involved and other references you may contact, even if you already have all the required information from other sources. Any dissimilarity in his report should be looked into and crosschecked carefully. If the builder is not forthcoming about answering all your queries frequently or seems hesitant about providing data, he probably has something to hide and you will know then, you have to back off.

v  Word of Mouth Referrals:

This is the oldest yet simplest way to get first-hand details of a builder who has worked recently for your family, friends, colleagues or any acquaintances. Some developers are so great, they deliver “wow” experiences to their customers. This produces a good word of mouth review for the developer. For this, you can visit any projects they have completed and collect customer responses about the builder. You can also ask for reference and contact details of customers who are using the service of the company or using the service, if possible. This kind of review by his customer is the way to find out about the credibility of the builder because the customer is the best critic of any work.

v  Track record checked

It is safer to buy from an experienced builder rather experimenting with a new one. You should always go for the builder with a good delivery record since he is likely to have a more professional approach, with systems and processes up and running.

For example- SV Housing. It is a reputed name in the industry having successfully delivered state of the art mega housing projects like high-rise residential apartments and commercial developments. Also, SV Housing has won acclaim for completing more than 40 projects as a mark of credible excellence in the pages of its real estate journey. So, this kind of track record is fair enough to trust on. Check List of Delivered Project by SV Housing Pvt. Ltd.

Besides, you can check the track record and find out how well the past projects have been planned and executed. Remember, lack of transparency is a good enough reason to not invest. On the other hand, a reputed and authentic builder will also typically be a member of an industry association, such as the Confederation of Real Estate. You can easily check to ensure that the builder belongs to a respected trade organization or builders association.

The organizations or associations such as, Confederation of Real Estate Developers Association of India (CREDAI) and Builders’ Association of India (BAI), etc. provide an ethical code of conduct that is mandatory for all the member builders and developers. They lay down certain rules and regulations that need to be followed and members violating these rules are blacklisted. These associations are also meant to facilitate easy approvals for financing as they have a close relationship with many of the housing finance institutions and banks. So peeps, go with the name of these associations to know more about the builder.

v      Quality Assurance:

You will never want to invest in a project which has low quality or is not legal and so.  You must get ensured that the project has been fully approved by the concerned authorities of the Government. This should be done before you invest or sign the agreement. The real benchmark is ISO 9000 plus. Companies certified with ISO 9000 plus are usually offer good quality services and products. You should check if your builder’s firm is an ISO certified company. Note to take insurance that the builder gives you a guarantee for at least a couple of years against construction defects. Also, make it clear that a corporation water connection is available as the provided tube wells may dry up sooner than expected.

v 
 ‘Let the buyer beware’

83 Metro Street has a team of Experts to clear all your doubts:
Click here to know more

A buyer or investor should select a builder after verifying all the necessary credentials, delivery track record, taking feedback from banks and other home loan lenders about the builder’s past performance, etc. An investor should not be solely guided by the cheap pricing or freebies which ultimately are proven to be more expensive due to project delays or abandonment.

Even after choosing your builder, you can continue by checking the documentation and other procedures. Be ascertained for getting the things and offers made by the builder during your meeting or interview in writing. Seek a lawyer’s assistance before you sign the contract. There is nothing wrong to renegotiate before you sign the contract. If the price or offer made by the builder doesn’t suit your budget, don’t worry, you can contact other builders.

Remember, once you signed the contract, then that is it. So, be wise before you invest your hard-earned money into any project.