Why Group Home Buying Is a Viable Home Purchase Option

It seems that when builders and a group of buyers get together, then a mutually beneficial agreement can be worked out! This is what group buying is all about. Since the past few years, group home purchase has been touted as a viable home purchase option for those looking forward to get handsome discounts on home purchase, which is a win-win situation for both home buyers as well as for developers.

Advantages to home buyers

The typical home buyer is constantly in search of the best deals they can get on home purchase. Individuals cannot negotiate for a better deal as compared to those that form a group with those having interests similar to theirs. Otherwise, the transaction cost will be quite high for developers. As individuals, people would not have the power to make a deal with the developers, but united as a group, they will stand together to get the best deals on their home purchases. Typically, the percentage of discounts given to a group would be somewhere between 4 to 10 percent, meaning that if you spend INR 40 lakhs on a home, you would stand to gain INR 4 lakhs.

Compelling proposition for property developers

Group buying is also advantageous to the builders in that they stand to gain more money, when they sell houses to a group even after giving them a discount for bulk purchase of homes. The down payment is usually high in a bulk group home purchase. In the era of uncertain stock market and high interest rates, the higher down payment is a blessing for those developers, who are cash-strapped. Moreover, developers get a market that is readymade and they do not have to spend a dime in marketing homes to the buyers. This reduces their cost of selling and therefore, they are able to give the customers handsome discounts.