I saw a newly built independent house a few months ago. (The seller built it with an intent to live. Apparently, put it for sale due to some financial problems). The price is significantly higher than the market price. But it was sold out before I could decide. Today (after more than a month) my broker calls me and says the buyer kept postponing the registration and hence the seller is looking for a buyer again. He says he has another client who has agreed to the seller's price. Apparently they have a meeting with the seller tomorrow. I don't know how to read the situation. One could argue, its a typical real estate trick. But, he didn't sound desperate. And my sense is that, he does have a buyer. I have a couple of questions.
1. Is Bangalore market that hot that its a completely seller's market?. I know it depends on the particular property. But wanted to get a general sense. Because I find it hard to believe buyers are queuing to buy this property.
2. How does one assess such a situation and negotiate?. What are the signals to check if the agent is trying to create some artificial demand?. I don't want to fall for the trap. At the same time, I don't want to let it go because it is hard to find good properties. I heard, it is equally difficult for sellers to find genuine buyers. But here I am with no room to negotiate.
I would appreciate some advice. For now, I have asked my broker to proceed with his other client. Thanks.
How to verify the demand for a property?
Re: How to verify the demand for a property?
It is a challenging any where in the world not in Bangalore alone. You need to create the checklist what you are looking for. If the property is matching up to 80% then you need to go for the at the property. For buyers, it looks expensive. But in the long run, the buyer feels happy. Talk to elders who sold properties. They say they did a mistake by selling. How much the seller/broker fleeces you depends on the glow in your eyes and subsequent words you use in your conversation. A good (nasty broker) will always do it very well especially when you go with your better off. That is why abroad, car salesmen, RE brokers, Kitchen designers, Timeshare salesmen insist on bringing the partner. They will identify the emotional need of one of you and then play one against the other. Ultimately Karma philosophy works well. If it is meant for you it will come into your hands.
Re: How to verify the demand for a property?
Don't blindly follow the Broker's opinions. There are few questions you need to ask yourselves and get clarified before proceeding this time.
In your earlier attempt, did you had a detailed discussion with the actual Owner? Have you felt, the owner is really in desperate condition to sell his property due to immediate financial needs ? If the owner had financial constraints, how come he is able to manage without completing the registration transaction which has already been delayed for XYZ reason till now and coincidence is your broker has come back to you again, so that you can re-initiate your interest on that property? And also your broker has mentioned you, he has one more client who is also interested in the same property & is ready to buy that property at the seller's price.!!!! Don't you think something unusual ?? Wait for a week or two and wait for another call from your broker or you enquire the status, to decide your next move.
Also remember, did you met the owner in your earlier discussion in the same house, which is put on sale or at some third party location ?? In a typical scenario, if the meeting is arranged by brokers & held at some third party location, the brokers arrange their own known person posing as the owner of the property for the negotiations and they never expose the actual owner till the Registration happens at Sub-Registrar office. So always you need to verify the name & photo of the person in the documents to the person who has come for the negotiations by asking their photo Id proof like pan card, driving license, Aadhar card..etc. In some cases, in my experience or in my friends circle, when we asked the photo id proof of the person who has come for the discussion, they abruptly left the place without saying anything. We have seen this multiple times.
In your earlier attempt, did you had a detailed discussion with the actual Owner? Have you felt, the owner is really in desperate condition to sell his property due to immediate financial needs ? If the owner had financial constraints, how come he is able to manage without completing the registration transaction which has already been delayed for XYZ reason till now and coincidence is your broker has come back to you again, so that you can re-initiate your interest on that property? And also your broker has mentioned you, he has one more client who is also interested in the same property & is ready to buy that property at the seller's price.!!!! Don't you think something unusual ?? Wait for a week or two and wait for another call from your broker or you enquire the status, to decide your next move.
Also remember, did you met the owner in your earlier discussion in the same house, which is put on sale or at some third party location ?? In a typical scenario, if the meeting is arranged by brokers & held at some third party location, the brokers arrange their own known person posing as the owner of the property for the negotiations and they never expose the actual owner till the Registration happens at Sub-Registrar office. So always you need to verify the name & photo of the person in the documents to the person who has come for the negotiations by asking their photo Id proof like pan card, driving license, Aadhar card..etc. In some cases, in my experience or in my friends circle, when we asked the photo id proof of the person who has come for the discussion, they abruptly left the place without saying anything. We have seen this multiple times.
Re: How to verify the demand for a property?
thanks @ramki and @msn1270. I appreciate.
I agree, we shouldn't blindly listen to them. Yes. It did look unusual to me. The broker had introduced to the actual sellers.
Anyways the property got sold. Actually, this is the only instance I have across, where the demand was genuine. ( In most of the cases, the property unsold for several years). Probably because of scarcity. The location, construction quality was really good. Some buyers may not mind paying a hefty premium since there is no hassle of construction. Anyways, no regrets since the house spec was not to my liking.
I agree, we shouldn't blindly listen to them. Yes. It did look unusual to me. The broker had introduced to the actual sellers.
Anyways the property got sold. Actually, this is the only instance I have across, where the demand was genuine. ( In most of the cases, the property unsold for several years). Probably because of scarcity. The location, construction quality was really good. Some buyers may not mind paying a hefty premium since there is no hassle of construction. Anyways, no regrets since the house spec was not to my liking.