What Indian expats need to know when buying a property back home

Non-resident Indians considering buying property back home should take a number of factors into consideration to secure the best deal.

Indian expatriates considering buying property back home should take a number of factors into consideration to secure the best deal.

“The current slowdown in the Indian economy has impacted several sectors, including real estate,” says Santhosh Kumar,the chief executive of operations at Jones Lang LaSalle India. “Sales volumes have plummeted and inventories have piled up, creating an ideal environment for buyers to negotiate with developers.”

Knowing the market and how much bargaining power you have given the inventory levels in the city and prices is the first step to being able to negotiate a good deal, Mr Kumar says.

There has been a slew of incentives offered by developers for the festive season, including free holidays abroad and free cars, or waiving club membership charges.

Mr Kumar says that pushing for a discount may be a better option.

“Negotiators who do not see value in such offers can and should negotiate for better prices instead.” It is also advisable to show genuine interest, he says. “This is probably the most misunderstood aspect of a negotiation. It is a myth that expressing their interest in purchasing a flat puts one at a disadvantage at the negotiation table.”

In fact, he says, buyers should clearly express their desire to purchase so a developer can seriously consider offering them a better deal. Builders treat genuine buyers very differently from idle information-seekers. Buyers should approach the negotiation table with their chequebooks, ready to pay a token amount and every assurance of serious interest if a good deal is offered.

It is often wise to enlist the help of a property agent, he adds. “Typically, buyers seek to avoid brokers because they wish to avoid brokerage fees. However, not all buyers are in a position to strike a good deal with builders or landlords.

“They could risk paying more than required, or winding up with an apartment in a bad locality and by a less-than-reputable builder. Buyers should explore all channels of transacting – brokers, online information sources as well as direct contact with owners.”