Checkpoints while Group Buying Real Estate

Group buying in real estate is attracting lots of customers because they get extra discounts on purchase of property such as homes and commercial spaces. In the group buying business model, as the potential home buyers come together as a group, they have a good bargaining power due to which they are able to negotiate good discount on the property. Group buying comes as a relief to builders also because it lets them save on marketing and customer acquisition costs. Also, with group buying the down payment which builders get is huge due to which they can focus more on their upcoming construction projects. Moreover, with group buying option, builders sell a guaranteed number of flats during pre-launch thereby reducing their potential risk. Though group buying is attractive, but there are certain check points which all potential home buyers must keep in mind before they actually go for group buying of homes. Most of the times the group buying websites charge a brokerage fee for each home from the builders. But, there are chances that they might even charge the potential buyers the service charges. Make sure that you first do a nice comparison between all real estate group buying websites and their service charges.  You must add these charges to the total cost of buying your home. The down payment which the potential home buyers are required to make with group buying is generally much higher than the down payment which they have to make while individually buying the house. So, be well aware of such a situation in advance. Going through the deal documents under group buying schemes is most important. Generally in group buying schemes, all the buyers leave this to the other group buyer and assume that he/she must have already read it. Such an assumption can land you in trouble in future. So, beware...

Group Buying of Homes in India

Group Buying is the buzz word these days. You must have been noticing the rise of group buying websites which come up with daily deals and lure customers to purchase the products and services on heavily discounted prices. Till recent times, the concept of group buying was limited to electronic goods, health care products, home furnishing items etc. This concept has now evolved to greater heights and group buying is now not just limited to the purchase of small ticket items and services. These websites are now offering potential customers with attractive deals for group buying of residential properties also. Sites like Grouphomebuy.in bring together a group of potential home buyers in many cities of India and make them avail heavy discounts from builders. The concept of group buying works on a simple fact that when you buy as a group, you can get better discounts in comparison to buying as an individual. This concept works well in the real estate industry of India as it not only benefits the home buyers but also the builders. Why? Because home buyers get to save lakhs of rupees even if they get just 1 % discount on the property and builders are benefitted as they sell off their inventory at faster rate which results in instant cash flow. Other reason why the group buying deals are beneficial for builders is that they need not spend on expenditures like marketing and acquiring customer base. This saved cost is given as discounts to customers. Also, the discount offered to customers depends on certain factors listed below. Location and stage of construction of the real estate project in which the customer is interested. Mostly, home group buyers get good discounts on pre-launch projects. Builder’s urgency for inflow of cash. As discussed above, both the builders and the home buyers get benefitted with the group...