Few ways to check the credibility of builders are: Background Check, Past Record and Performance, Quality Accreditation and Certification, Recognition in Real Estate, etc.
If you are planning to invest your hard earned money in real estate, then do not just fall for everything which brochure claims; rather it is advised to do some fact-checking first. A lot depends upon the research you about a builder. Here are a few ways to check the credibility of a builder:
- Background Check: Nowadays it is quite common for builders to have their own website. Therefore, to start with you can go through the website and check the list of completed, ongoing or upcoming projects. This gives you an idea about the different types of projects the builder has been executing. Moreover, these days builders also update the current status of projects on the site. You can even contact a few local brokers to have an idea about the builder’s projects. These brokers may shed some extra light over the builder’s past records. In the whole process of background check, do not miss out on the legal documents with the builders. Manan Chopra from Rapid Realtors explains it further by saying, “Usually builders do not prefer disclosing all the documents, but to be sure of one’s project, you should always check them. Documents that you should certainly check before investing in a project are Land Records, Land Usage Certificate by zonal commissioner, Clearance of Construction Site, No Objection Certificate from the authority, Approval of the Plan, and Master Plan of the area.”
- Past Record and Performance: Rather than going for a new builder, it might be good if you opt for an experienced one. This way you can be sure about his knowledge in terms of execution of projects. If there is no transparency from the builder’s side then probably it is not the best idea to invest in the project. Prominent builders might also have associations with credible agencies such as Builder's Association of India (BAI), Confederation of Real Estate Developers Association of India (CREDAI) and others. Adhering by strict norms, these self-regulatory bodies have regulations for builders and any kind of deviation leads to blacklisting of builders from the association. So in a way these agencies can turn out to be helpful.
- Quality Accreditation and Certification: One must always check whether the builder is certified under ISO or other protocols or not. These certifications are based on factors like customer satisfaction and quality assurance. These certifications and accreditations are provided to builders who do not compromise on the quality of construction material, timelines etc.
- Real Estate Ratings: Started in 2010, CRISIL introduced its real estate star ratings (CREST) which provides an overall assessment report of different real estate projects from specific cities. Along with this, CRISIL itself comes up with a rating list for various developers based on a number of different aspects. For this rating to take place, developers have to get registered with CRISIL.
- Recognition in Real Estate: Just the way every industry has awards for key performers, the real estate industry too hosts various awards for recognising excellence in specific projects. Since winners are identified only after a detailed check, you can easily be sure of the exceptional track record of winners. In case there is a new builder, then recognition is an impossible thing to look for. “In such a scenario you should always check whether it is a private entity or owned and managed by some conglomerate with varied businesses. Also check for funding sources of the builder.”, explains Chopra.
- Financial Status: Indicating a builder’s standing in the real estate sector, financial health provides you a clarity about whether the builder has faced any crunch in completing past projects or not. If there has been any case of funding issue, then probably the builder is not the best one to go for. In such cases you can identify the weaknesses, assess the overall credibility and make your final call. You can find details regarding the financial health of a builder on the company website and assess whether the builder would be able to the project’s deadline or not.