When it comes to investments, it goes without saying that buying a home is most likely to be the biggest investment any person is likely to make in their lifetime. Obviously, when such a large sum is involved, you want to make sure that you are investing not only in the right project that checks all your boxes but also with the right developer who will bring your homeowner’s aspirations to fruition.
Here are some steps towards the due diligence you can do to check the credibility of the developer of the project you are interested in:
Cursory Check: Before going into any details and to satisfy yourself at the outset, just go on the Internet and scroll through information on the developer. There may be press articles about unethical practices or any legal or financial issues the developer may be having. Social media also offers people a platform to voice the issues they may have faced. All this will give you a good idea if you want to continue with this particular developer.
In-Person Visit: Not only should you go for a site visit of the project you are considering, but you should also check out other projects they have developed in the past. This way, you can get an idea of the quality of the construction and even get a chance to talk to residents to understand their experience with the developer. A reference check, by talking to the customers and knowing their experience in the process of home buying, can help you understand more about the developer.
Customer Satisfaction: While the internet search would give you a general idea, a more concrete proof of customer satisfaction is by checking the International Organization for Standardization (ISO) 9001:2008 certification of the developer. A developer is audited by ISO 9001:2008 on eight principles, which include customer satisfaction. So, any developer deemed ethical in their dealings by them is someone you can trust.
Financial Stability: A project is likely to be completed on time and with quality input only if the developer is financially sound. One way of checking this is to review the company’s balance sheet, which would typically be available in the public domain. You could also enter the company’s CIN or registration number and ROC details on the Ministry of Corporate Affairs’ website to check the company’s financial records, particularly to gauge if they have any cash flow issues.
A developer who is part of realty bodies and associations like CREDAI-MCHI and the Builders’ Association of India is likely to be reputed and respected by their peers. Moreover, with RERA registrations, it is now easy to check that all necessary permissions have been granted for the project, the plans, etc.