STAGE 1
PRE-PURCHASE

Purchasing a home will probably be the largest investment you make in your life...unless you purchase another home a few years later. Make sure the house is truly your dream home by doing your homework thoroughly.

Stage 1 comprises a collection of tips that will help you to be better prepared...

LOCATION

The preferred location for a home will differ from person to person...

Sometimes even within the same family. Sit down with the entire family and come to a consensus on what will be best for all members of the family.

What's important while we're choosing a location?
(Select According to your preferences / Priority )

AMENITIES

These days, the size of the home you can purchase and the amenities that the society offers are largely a function of your budget. Settle on the bare minimum size that is absolutely required for the family and all the amenities that you feel are important. From that benchmark, anything better within your budget will be welcome.

List of minimum requirements
Fill in the blanks or tick the checkbox

Natural Light and Ventilation in the home

Children's play area with in the compound

Lower floor of building

Elevators

Benches within compound where elderly can socialize

Lifestyle facilities (swimming pool, clubhouse, etc.)

HOME CONDITION

When you purchase a home that is ready for possession or is on resale, you have the opportunity to assess its condition. Check for leakages and cracks in the plaster, beams and columns. Make sure that the grills and windows are secure. Pay attention to the type of flooring that has been used. Inspect the bathrooms to see if the plumbing is as per your expectations. Last, but not the least, ensure that the balconies and terraces and other open areas are child-proofed, even if you do not have little children of your own as you can never rule out the possibility of guests or hired help bringing children to your home.

Keep in mind that any changes to the current condition of the house will add to your costs and involve efforts, which in turn require time. Further, some conditions can be remedied very easily - need for a coat of paint - while others persist, irrespective of how much work you put into them - cracks in central, load-bearing columns and beams. Make sure that the home you plan to purchase is structurally sound.

PAPERWORK

Choosing a property that does not have its paperwork in place could cause hassles for you later. Without proper documents to certify clearances, transfers, taxes paid, etc., you could later be required to pay penalties or even be up against litigation/eviction

(See chapter 2 for all the documents that the seller must be sure to have).

SIZE OF THE HOME

There are three main terms appended to the square-foot size of the house - carpet, built-up andsuper built-up.

  • Carpet is the actual, net usable area in the house. It is the measurement from one inside wall to another of each room and includes passages and staircases that are inside the house.
  • The built up area is the carpet area plus the walls and ducts and half the area of open balconies and terraces.
  • The super built-up area includes built-up plus common like facilities such as lifts, corridors, awnings, etc.

Make sure that you clarify which is being used when you are quoted the size of the house. It will impact the per square foot rate and directly impact the space available to you.

STATE OF PROPERTY

In the property market you will find houses that are under-construction, ready for possession and resale homes. All three types of homes have their benefits

  • Under-construction houses usually allow you to pay up in manageable instalments and tend to cost less than they will once they are completely constructed.
  • Ready possession houses are most appealing as they are new and you can see exactly what you are getting.
  • Resale homes are tried and tested properties that reveal either their strengths or weaknesses.
PROPERTY PAPERS

These are the documents you must expect any prospective seller to possess and be ready to share with you once you have shortlisted their property:

Clear title on property and no encumbrances pending

Building approval plan - This is an approval from the local development or planning authority or municipality.

Commencement certificate (for under-construction property) without this, the property could be considered illegal and attract penalties or an eviction notice and in the worst case, the construction can be demolished. Conversion certificate (in the case of agricultural land that has been converted to non-agricultural land.

Encumbrance Certificate - indicating that there are no liabilities against a property

Completion Certificate (in the case of a constructed property) issued by the municipal authorities indicating that the building conforms to the approved plans

Occupancy certificate (in the case of a constructed property) certifying that the building is ready for occupancy

BROKERS AND WEBSITES

Having a well recommended, neighbourhood broker, whom you trust, could be really helpful as he would show you houses that suit your requirements and budget. However, an efficient option - both in terms of money, range of options and efforts involved - is the use of online property broking websites such as www.99acres.com, www.commonfloor.com, www.housing.com, www.makan.com, www.magicbricks.com, etc.

RATES IN THE AREA

Homes sometimes appeal to us instinctively and we are ready to pay a slight premium to acquire a home that seems to match our dream home so perfectly. However, before we decide, it's always good to know the average going rate for various types of residences in the locality so that we do not get carried away and pay too high a premium.

BEFORE BOOKING

A token of cash or a cheque of a particular amount along with a standard purchase agreement is usually required to seal a deal. However, in addition, a number of sellers require sets of documents that have to be produced and these will differ from seller to seller. Instead of directly inquiring directly from the seller what will be needed, it's always best to ask the broker/agent. This will spare you from revealing your true interest in the property until the time for negotiation comes.

Checking the condition of the homes you have shortlisted
For each home you have shortlisted, tick the checkboxes based on your perception

Leakages

Plaster and paint job

Grills and windows

Flooring

Balconies and terraces

Bathrooms

Leakages

Plaster and paint job

Grills and windows

Flooring

Balconies and terraces

Bathrooms

Leakages

Plaster and paint job

Grills and windows

Flooring

Balconies and terraces

Bathrooms

Do I have all my loan related papers ready?

Documents that I have handy

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Documents that I need to find/acquire

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Knowing where I stand as a loan applicant...

I am

My CIBIL score

I have been working at the job for