I am now increasingly feeling that homes have become FMCGs. Their shelf life is comparable to a detergent pack in a store. Prices however are more dynamic, comparable to stock markets. This is surely benefiting the builders – no wonder those who were once making soaps and towels are now getting into real estate. Where does it leave the buyer? Unlike telecom, when it exploded benefiting buyers as well as sellers, home has been pathetically prejudiced toward the seller. Drawn from real life experiences, I hope you would find this post interesting and revealing.
“Please be early tomorrow, unlike the last weekend wherein we reached the site post noon and that flat had just been booked” says Anita, 29, a banker to her husband Prashant, 33, working for a telecom company. Married for 4 years now, last year they finally decided to buy their own house before starting a family. Prashant ignores Anita’s comments knowing only too well that the builder had raised the rates by another 200 psft from the time they last saw the property some three weeks ago and not finding the desired flat was not the reason why they discarded the property. Or to put it correctly, the property discarded them!
On the ride towards New Bombay Anita keeps looking at the watch and cursing the distance and the traffic. They live in Andheri and are today visiting Belapur to check out a property. When they finally arrive at the site, what they see is a large ground, partially dug. A watchman asks them to make an entry. Prashant scribbles under the columns till he arrives at “Who do you want to meet?” He stops, and writes, ‘Lodha’ wondering if these registers are ever checked. They walk towards the sales office that has a close resemblance to a shipping container. Outside the container, there is a shamianah with a row of tables. On the tables are maps, brochures, note pads, calculators. While walking through the shamianah, Anita can listen to the salesmen talking of what sounds like children reciting chants. The prospects are looking down on the maps listening attentively to every single word. Very rarely they ask a question. Most real estate salesmen opening pitch answers 90% of the questions of all buyers. Many buyers then ask what has already been said. Everyone wants reassurance.
Anita wonders if she has to sit under the shamianah to buy a house of 50 lakhs, which she assumes is a decent budget for a 2BHK in Belapur. After all it is Belapur! Beyond civilization. She is ushered inside the container, which is air conditioned. Prashant wonders if this treatment had anything to do by their arriving at the site in a car. Three salesmen occupy the container. They seem to be senior as they wear ties and jackets. (Anita thinks ties and jackets mean seniority. She visualises her favorite restaurant). One of them looks up and gestures Anita to have a seat while he is dealing with a mid aged couple with a pre teen son who looks bored. Anita and Prashant overhear half of the pitch while waiting. 15 nine storied building of one, two and three BHK. Optima, Ultima and something that ended with ma. Anita soon realises how much she wants to be a ma and if she could have any of these ma then she could be a happyma. Her thoughts are interrupted when she hears something that sounds like sixty lakhs. She looks up trying to peep on to the paper where the senior salesman has his finger and the mid aged couple have their eyes transfixed. Almost immediately the couple gets up and leaves the container.
The salesman smilingly looks at Anita and offers her the chair opposite him. Prashant is confused if he is ignored or irked by the salesman’s special attention to Anita. “How can I help you?” is the first thing he says with a broad smile. “We are looking for a house”, is Anita’s reply wondering what on Earth would she be otherwise doing on a Sunday inside a container in Belapur. Without bothering to ask any further questions, he starts with his script.
“Premia is builder’s third project in New Mumbai.” Tilting on his seat he shows pictures of two other buildings built by the builder as some kind of a proof that even Premia would be completed. Some day. “15 nine storied building of one, two and three BHK. Optima, Ultima…. What are you looking for?” A baby is what Anita almost hears herself saying when the salesman changes his question to, “What is your budget?”
Now this is one of those questions that makes home buyers feel really insecure while the sellers are unable to talk any further without its answer. Buyers think that if they really reveal their budget, would the salesman negotiate if the final number is below their budget? On the other hand they also think that if they do not reveal what they have in mind, then he would show them a smaller flat that they don’t want or a larger one that they can’t afford. Salesmen don’t know what to show till they ask the question as each flat type has sometimes a different brochure and and always a different floor plan, availability etc. Hesitatingly Prashant says “45-50”.
“In which case let me show you Optima which will just fit your budget. 695sq feet 1.5 BHK. We are offering a rate of 5750 with a 30 rupees floor rise. So lets say, you take it on the 5th floor, it comes to 52 lakhs all inclusive.”
Prashant takes a closer look at the excel sheet and notices ‘infrastructure cost’. “What is this?”, he asks.
“Oh, this is (all smiling) development of the property, club house etc.”
“So is it not a part of the rate?”
“No Sir, it is separate”. Prashant waits for a qualifier and gets none. He turns back to the excel
Anita interrupts, “Can we see a sample flat”? This time the salesman is really smiling – meaning you know when one is really smiling. “Mam, there is no sample flat. We will make it”
“What % of flats are sold?”
“70%. “
“So why will you make it?” The salesman smiles sheepishly.
“This does not include car park?”
“Car park is separate mam. We are not selling it at the moment?”
“But why?”
“Corporate Policy mam. When we are open to sell it, we will inform you. Right now we are just selling the flat.”
They walk out, almost as abruptly as the middle aged couple before them. Outside they see people writing a cheque under the shamiana. People are buying.
While driving to the next property, they sit silently in the car. After sometime Anita says, “How can people buy without seeing a sample flat?” And without a car park? Don’t they get it? Once they have bought it, they will have no other option than to buy at whatever price the builder is offer the car park.” Prashant is silent.
The next few properties of never heard builders have similar issues. None offer a sample flat so one is not sure of the builder’s vision too.
Later in the afternoon the couple drives into something that seems big. There are a few cars parked outside and more inside. They sales office is a drastic contrast to what they have seen during the day. It has a garden outside with Christmas decorations in the lobby. Walking into a lobby, Prashant notices lots of young girls in suits and a couple dozen prospective buyers waiting like we do for flights.
Almost immediately a girl walks up to Prashant and asks him to fill in a form. Prashant scribbles boringly. The girl takes the form and places them under a heap. He understands why everyone is waiting. He looks for Anita warning her that this may take time and is unable to find her. He then notices her in the next room that has two huge replicas of the two wings of the property. Anita is keenly observing and when Prashant joins her, explains part of the replica. “How did you know that this is a natural water body?” he asks. “I was listening while that guy was explaining to these people” pointing to a salesman and a family.
Suddenly they hear an announcement followed by a few people clapping. Perplexed, they move to the next room that has a small auditorium which is showcasing a 10 minute film on the property. Beyond this room are sample flats. Finally! Anita is quick to move into one of them without bothering to look back at Prashant who is still wondering if they should be going in alone or with those escorts waiting at the entrance. Anita behaves like a child who was given a long awaited toy while she devours the sample flat. The escort quickly following them inside explains which of the aspects will be present and which wont be in the final flat. Anita is impressed as the rooms of a 1.5BHK are also spacious. They always are in a sample flat is Prashant’s explanation. “For example, look at this bed. Do you think we could fit in. They dupe us by placing a smaller bed in bedroom so you see lot of space. Lighting, mirrors do part of the trick. Sometimes the flats are bigger too as opposed to what one would get. Once done with, they come out to see an executive waiting for them to talk numbers.
This one in a suit himself takes them to a secluded table and offers tea which the couple happily accept. His explanation of the property is drab but the highlights are that this property is more like a township with hundreds of buildings and thousands of flats. Most are gone but they can find one of their choice if they really want to buy. They mention 5th floor and the salesman looks up his papers. “Are Sunil, 504 hai ki gaya?” “Block kiya hai” is Sunil’s response. Again an announcement and a round of applause. Prashant asks, “Ye kya hai?” “Sir when people book flats by paying the token, we make and announcement and congratulate them” Anita and Prashant look at each other – both thinking about the same thing. ‘In less than 20 minutes, they heard two applauses – so two flats sold!’. They should not be delaying.
They like it, and now is the turn for the excel sheet. Prashant notices the infrastructure cost again. He stumbles when we sees ‘grilling cost’.
“What is this grilling cost?”
“Sir cost of grilling.”
“Yes I get that (sounding exasperated), but what grilling?” Sir, the grills outside your windows? That cost”
“You don’t charge for taps and tiles?” The salesman ignores the remark.
Car park is available, but at 4.5Lakhs! Prashant wonders at what price he bought his Zing. Bombay could perhaps be the only place where car parks are more expensive than the car. Its like paying more for a safe locker in a bank than the worth of what is in the safe.
The couple now realise why the rates are comparable to that in the nearby suburb whereas this place is in the middle of no-where. Plus they don’t like the builder’s fleecing attitude. All the costs of these salesmen and women in suits is paid by the buyer. They move on, unsure.
For the next site, they keep asking for directions but seem lost. The operator at the sales office does not believe in offering an opinion and only answers in yes and no when called for directions. Finally, when they arrive at the second site, they read a sign that asks them to remove their shoes as they walk into the sales office. A man who could rather have a better future as a Shetty gangster, gestures them to sit down. And a long silence follows.
After a few uncomfortable moments Prashant says, “We want to enquire” Almost immediately our gangster friend starts chanting, “2 and 3 BHK apartments, 3 buildings, blah blah. “How many floors? Prashant enquires.
“Nine, but we are selling up to six only. “
"Why?"
“Because we have got OC for up to 6 floors only.” Which means for those innocent readers who are unaware of the jargons, that the municipality has not given them permission to build above the sixth floor and the builder is happily building it hoping to get permission later. It also means that the building may never be able to form a society since all the members will not have an OC from the municipality. Without a society, it may be difficult to get a loan and other amenities from municipality. Prashant wonders whether the builder is corrupt or the salesman an idiot to say this to prospective buyers.
During this a couple with a toddler enter the office and ask, “Sir, we came to deposit the booking fee for 1BHK.” The salesman says, “But we have not opened 1BHK. Once we open it, we will call you” “But sir, you can take the booking amount now and enter my name as soon as you open it”. “No, we cannot do that. We will give you call and let you know” “Will you do that Sir? Surely? “Yes, Surely”
The salesman starts from where he left and explains the rest of the script. But neither Anita nor Prashant are listening. Anita surely thinks that this was an act. That these people were paid to come and show how desperate they are to book a property here. Prashant on the other hand is wondering if people can be so naïve or desperate to book a property knowing that the building does not have an OC.
Once the salesman’s performance is over, the couple look at each other and get up to leave. The salesman does not stop them.
Buying a property can be a nightmare. I wish govt had more control on the builders but they have been soaked in bribes. A few things such as one single readable certificate from the govt that clears the building of all technicalities – OC, Forest, Land rights etc. Another thing could be that the builder has to promise when he will hand over the possession. Any delay and the builder pays the EMI or interest equivalent of market rates to the buyers. Home consultants that act as experts and compare what was promised and what was delivered – tiles, bathroom fittings, paint, club house specifications etc. A builder today can easily get away from all of this. I wish home buying was easier.
