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Informed buyers feel bridging trust deficit is not unrealistic

Informed buyers feel bridging trust deficit is not unrealistic

Home buyers today, are very clear about their expectations from developers and can even make informed suggestions, on bridging the trust deficit between the builders and the buyers, according to a pan-India survey by Track2Realty. 72% of the buyers, said that a defect liability clause, would make them trust the builder, while 28% suggested that developers should charge a one-time cost, included in the apartment’s price, for lifetime service.

 

Consumers were asked to rate the developers and the prevailing market practices, on 25 action points that were grouped into five attributes:

 

The survey was aimed at understanding the prevailing practices in the housing market and its link with the home buying decision. It found that consumers’ awareness of key industry practices and regulations was quite high, at 80% (or 20 out of 25 areas). 68% of the respondents said that they were not happy with the disclosure norms and builder-buyer agreements. Only 12% said that they were allowed to see the builder-buyer agreements beforehand, while the remaining 20% neither asked for it, nor did their developers offer to show it to them.

 

Home buyers’ needs ignored

 

No transparency, owing to marketing gimmicks and hidden charges

 

Is a bigger developer actually better?

 

Resolution of disputes between home buyers and builders

Buyers felt that developers have a poor record, vis-à-vis arbitration. Nearly half of the respondents (46%), were in favour of a well-defined cancellation policy and exit option for the buyers, while 30% demand uniformity in refund process and interest. The remaining 24% demanded a buy-back process with balanced terms and conditions.

 

Poor facility management

Post-delivery facility management, was another critical concern for buyers. While 42% complained about the service quality, 38% said there were issues with the cost of service and felt that the developers were cheating the buyers through facility management. Only 20% said that issues crop up due to missing consumer connect.

 

The survey was conducted in 20 cities – Delhi, Noida, Gurgaon, Mumbai, Kolkata, Bengaluru, Hyderabad, Kochi, Ahmedabad, Chennai, Jaipur, Lucknow, Surat, Bhopal, Indore, Patna, Bhuvneshwar, Vijaywada, Pune and Chandigarh, between October 25 and November 10, 2016, with the respondents belonging to a mix of the luxury, mid and affordable segment of buyers.

(The writer is CEO, Track2Realty)

 

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