When deciding to get a new home, one of your primary concerns will be to find a good real estate developer. Unfortunately, there are many shady developers in the market waiting to scam you off your hard earned money. To help you avoid such fraudulent services, we list four things you should consider when selecting a good real estate developer.
Past Projects
Check out the past projects of the developer. Ensure that they have done a good number of projects, and have sufficient experience in constructing a wide range of buildings. And if they have previously built a structure similar to the design and construct of the proposed construction, then better. You also must check whether they have been 100% committed to delivering the project as per the client’s agreement. Look for any incidents in the past where they have been involved in any dispute with a client for non-fulfillment of promises. If you do find that a developer has a history of such incidents, then it is recommended that you avoid them, no matter how attractive their quote is. You should also check if the developer completes the projects they are assigned with on time. If they have a history of delays in finishing up a project, then that is definitely a red flag. Remember that the more a project is delayed, the more expense you will have to bear in terms of labor costs, financing costs and so on.
Financials
Check the financial position of the developer. Look at whether they have sufficient revenues and assets to keep them in operation for the coming several years, at least until your project is finished. They must also not be in too much debt that there is a risk of creditors suing the company for reclaiming the debts. A real estate developer who is facing financial problems can delay your construction project, or in the worst case leave it midway. They might also not return back the money you have paid them. To avoid such troubles, it is better to stick with a developer whose financial position is strong, and who has a large number of projects in the pipeline with relatively low debts.
Legality
Check the legal documents of the real estate developer and verify that they are authentic. Ask them to provide a copy of the title deeds, building approval and other such documents for verification. And if you have trouble understanding the terminology used in the documents, consult a lawyer. Only trust a developer who has submitted all the necessary documents you have asked for.
Network
Finally, look at how well networked the developer is. If they have an excellent relationship with all the bigwigs in the region, whether it be in politics, government departments etc., then you can be rest assured that they will be able to get through any legal trouble they might face in the future.
So, be sure to check for the above when searching for a real estate developer, and you will certainly find one who will meet your standards.