What is the background of the developer?
This is the first and foremost thing you need to do when choosing real estate developer. Performing a background check on the real estate developer helps you know their track record, projects and delivery rate. A good property developer has at least one successful project completed. Checking developer’s background is essential and can be done by visiting their website online to check company portfolio, associates and history, talking to the previous clients, visiting their ongoing construction site to find out about their work quality, materials, and layout. You can also ask the owner of that project about the services and reliability.
Who are the financial partners?
Before you go ahead with buying that house, you need to find out whether the developer has the capital to move the real estate development forward or if they are relying on sales revenues. Remember that limited financial flexibility or low project sales can adversely impact the timely completion of a project.
Do They Have Legal Documents?
Ensure the real estate developer has all documents regarding land title, authority approvals, construction commencement, building plan approval and other information. It’s better if you ask a lawyer to help you with legal due diligence and independent review to understand the tricky terms and conditions mentioned in the agreement or other documents.
What about prices?
Do not be excited if you find a developer with dramatically low price quotes. As high priced quotes do not necessarily guarantee good works as they may include hidden charges, it’s wise you carry out a market survey of properties within that axis and discuss prices and hidden charges on the spot with the developer.
What are the proposed facilities/infrastructure?
This is paramount to ensuring the convenience of living and ensuring that the property is habitable. Basic facilities should include Perimeter fencing, Electricity, Water treatment plant, Integrated security system, Drainage and Sewage, Recreation area, Ample space for parking among others.
Project delivery and its terms?
As you now know, working with a financially secured real estate developer is the right move. However, there are many companies who don’t deliver their projects on time. Aside from looking out for track record of the developer, asking the old/previous clients of the company comes in handy in this case. Most agreements mention a time frame within which the developer will give the possession of the property, however, the trick is that the agreements do not mention the start date of the time frame. Enquire about the start date, get it documented, and check for penalty clause under which in case of a delay in possession, the developer will pay a penalty to the buyer.
What are the payment schemes available?
It is advisable to stick to payment plans that are favourable to your income cash flow. In the case of loan accessing mortgages, opt for plans that are easy and convenient without breaking your bank.
Will there be extra charges?
Check out for various heads under which the developer may ask the home buyer to pay, for example, service charge, documentation, legal, etc. It is advisable to calculate what will be the purchase value after adding all these charges and buy only if the sum falls within budget. There are also cases when the buyer falls behind in paying an instalment, in that case, the buyer should be clear about whether the developer will give extra time to pay up, what will be interest liability, etc.
What are the current and planned property developments in the area?
This question will allow you to have an idea whether the location of the property that you are interested in is in a growing area. Your developer should also inform you about the development plans of its competitors, in addition to its own. It is important to know the development trends where the property is located so you would know if the property you wish to buy will have an added value in the future should you wish to sell it. A property situated in a location that has a positive outlook like Awoyaya will definitely have its value appreciated in the coming years as compared to a home located in a community devoid of any business or commercial development plans.
What of after-sales support?
Don’t forget to find out about after-sales services such as property management, service facility and marketing support for re-sales. Make sure you are comfortable with the level of service that the developer intends to provide after the sale.