Posted on 01 Jun 2020
COVID-19 Pandemic is affecting each and every industry. This pandemic has disturbed the market balance between the buyer and the seller. Currently, The real state industry is facing the same crisis. The lockdown has closed several deals and many are them are on halt. Although the business is shifting online still the question arises whether to buy the property in this lockdown phase and if buying what all things must be considered before finalizing a deal.
The market analysis for real estate industries shows some growth in the sector in the first four months of year 2020 along with a hike in the demands of smaller units and ready-made units. New projects for construction and development is not encouraged by the developers, however, the people continue to take interest in investing in the ready to move and the small unit even in the lockdown phase.
The analysis also records the drop in the number of inquires for the real estate property and also in the property visits which are the direct impact of the lockdown. But as the business for real estate is gradually shifting online, the customer and dealer cycle is still maintained. The builders and real state owners are including the virtual reality solutions for their business which will help them to gain a stable position in the market after this pandemic.
Different prospects that a buyer should keep in mind:
The analysis of real estate data shows that there are a lot of good deals available in the market as well the negotiation scope for properties is also high. However, the experts dealing with the Real Estate business share their opinion that the users must be cautious and should not finalize the deal in a hurry. Proper inspection must be done about the property, the broker, and the real state developer history whether is has delivered his project in the previous deals, etc. The COVID-19 Pandemic may offer some valuable deals and opportunities but at the same time, the risk for converting this project is still very high.
Some of the important points while finalizing property deal :
Proper introspection about the property details and agreement study
Finalize the need for buying a property
If buying for new accommodation, try to choose a location which is near to different stores, educational institutes, and offices.
If buying the property for financial safety in the future, then try to find out the future project in or nearby that area because currently the stock markets are not giving satisfying returns and therefore proper assurance is needed.
Try to study the previous history of the dealer or property broker to know whether the person has delivered the projects or not.
Do consider whether you are stable enough to invest in the property and will the pandemic cause some kind of negative impact on your job
Clarify if buying a property is important or securing the money for future use. Prioritize your needs.
If you are sure of buying a property then it is also necessary to choose the mode for payment whether using down payments, EMI’s, Loan facilities, insurance policy, savings, etc.
The buyer must be clear with the property he is investing in and his profit expectations from that particular deal.
Who will be the buyers in the current pandemic
Due to the pandemic, like any other business, the real estate industry also must have lost its customers because of various reasons but still, some buyers are still available in the market who will prefer to buy the property in this current pandemic.
Let’s classify of the buyers still ready to invest
Negotiating circumstances are high. Therefore, if the buyer finds a deal quite negotiable then the deal holds the potential to close at high negotiation in this current pandemic.
Some set of people are the ones who have already visited the site before the pandemic and will now be closing the deal at lower prices in comparison to the prices before the COVID-19 situation.
The buyer can also be the people who have in-depth knowledge about the market and have analyzed the current market and made a choice to invest in the property.
Surprisingly, the market will also see a bunch of NRI buyers who will invest in the Indian property keeping in mind the depreciation and low price factors.
The other segments of buyers may include the established investors who will buy the property keeping in the long term investments and profit returns.
Other mandatory checks before investing
Background check of the builder/seller
Proper market analysis and prevailing conditions
Buyers financial stability
Agreements related to property
Quality check and current condition of the property
Any previous claims or case on the property
History records of the property broker
Listing out Strong Negotiation criteria
The credibility of previous projects and deals
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