1. Plan your Budget / Budget Allocation
Before you start looking for a house, determine your budget. Identifying the source of funds to purchase your dream home will go a long way in beginning the process for a house search.
Your budget shall be determined by the availability of funds from the above mentioned sources. It would be wise to check your loan eligibility & perhaps get a loan sanction document even before beginning the home search process. If the funds are from Sale of existing property, then getting a property valuation from a professional valuer would help you determine an accurate budget for your dream home.
2. Determine your Requirements
Once you have determined your budget, the next step is to identify your exact requirement in your dream home. You should guarantee that the property you are getting will satisfy your present needs and be within your budget. As a property buyer, understanding your family’s present major needs will help you make the right decision.
Choosing a property type or configuration in real estate depends on various factors, including your budget, personal preferences, lifestyle, and investment goals. Will you be looking for a house, 1 BHK flat for sale, or 2 BHK / 3 BHK flat for sale in Mumbai? How much carpet area should you expect at a certain price point? Your budget is going to play a decisive role here as the price point will vary depending on the type of property.
Some factors to consider while determining your requirement:
- Ready to Move vs Under-Construction house
- Configuration: 1 Bhk / 2 Bhk / 3 Bhk / 4 Bhk
- Carpet Area Requirement ( compact vs spacious )
- Amenities Needed ( Gym, swimming pool, spa, garden etc)
- Location: Determining localities / micro-markets to live in.
3. Market Research
Now that you have clarity on your budget & your exact requirements, you can initiate the search for your dream home. There are multiple ways to go about your home search. You could either go through the search process directly if you have enough knowledge about the industry, or you could enlist the help of a real estate agent/broker.
If you choose to undertake the home buying process by yourself, the first step would be to create a shortlist of potential properties that you would like to visit. A good place to start would be visiting real estate platforms like 99 Acres, Housing.com & Magic Bricks. Alternatively, you can conduct your research on Google & visit the developer / project websites.
Real estate agent assisted purchase:
You could opt to reach out to a local broker based on recommendations from someone you know. A broker will help you with options that would be a good match based on your requirements. They can provide you with important information regarding the project, payment plan & pricing.
It’s important to research the market in the area you’re planning to live in, to help you understand how competitive the market will be. Conduct some research on the real estate market in Mumbai to get an idea of the current trends, prices, and available properties. Speak to people in your circle who know about real estate & get an opinion before making a decision.
4. Visit Properties
Choosing a property type or configuration in real estate depends on various factors, including your budget, personal preferences, lifestyle, and investment goals. A site visit can help a buyer ascertain the genuineness of claims made by the developer. Visit properties that meet your criteria and take note of their condition, location, and amenities.
Attempt to visit at least 5 different properties to get a good understanding of the market. The goal is to have at least 2 properties that you like & would like to close on.
5. Secure Financing
If you require financing to purchase the property, approach a bank or a financial institution to obtain a loan. Be sure to shop around for the best interest rates and terms. If you are to take a bank loan, then it might be a good idea to take a sanction letter regarding your loan eligibility. It enhances your negotiating position when you decide to make an offer.
6. Make an Offer
Once you have shortlisted a property that you like, you should make an offer based on your budget. Making an offer will indicate to the seller that you are a serious buyer & will bring him to the table where you will be able to negotiate with him.
Make sure to make offers at multiple properties. Keeping options will help you determine the level to which the seller is willing to negotiate with you & enhance your negotiating position.
After you have made an initial offer & the seller has come back to you with a counter-offer, it is time to sit across from the seller for a final round of negotiations. Before you sit for these final negotiations, you must analyze the gap between your offer & the counter-offer provided by the seller.
You must have a maximum price that you are willing to offer even before you enter the negotiations. Once you have reached your maximum threshold, you should be ready to walk away if needed.
Once you have successfully negotiated an amount which you are comfortable with, you can provide a booking amount to block a unit of your choice.
8. Due Diligence
Once you have successfully negotiated the terms of the deal & paid the booking amount, it is time to do a thorough due diligence of the property that you are to purchase. Check if the details provided by the developer match with the details mentioned on the RERA website. Find out about the developer, the construction pace, permissions & timelines.
9. Close the Deal
Once all the legal formalities are completed and financing is secured, you can close the deal and go ahead with the registration of your property after paying the necessary government taxes.
Be sure that the paperwork regarding the property is in order & that everything is in the correct format. Be sure that all the major terms of the deal have been recorded. Get the agreement vetted by a lawyer before the registration process. Remember that buying a house in Mumbai is a significant investment, and it’s crucial to do your due diligence before making any decisions.