30 August, 2023
Unlock the doors to real estate success
Read time: 5 minutes

In today's edition:

  • In the news: Reforms, NWO, and conservation
  • My thoughts on: Builder selection
  • Q&A: Commissions

Handpicked stories from my weekly digest

Here are the 5 stories that you need to be aware of from this past week:

  • Insolvency law overhaul: An expert panel has proposed significant changes to India's insolvency law as part of a strategy to reinvigorate stagnated real estate projects. These reforms aim to facilitate the completion of unfinished projects, bolstering the country's realty sector and potentially boosting economic growth. Read more
  • SEBI boosts trust: SEBI is directing its attention towards enhancing the credibility of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). With an aim to boost investor trust, SEBI's initiatives are expected to further develop the market for these investment instruments. Read more
  • Construction waste management initiative: Godrej Properties, a prominent real estate developer, is urging realtors to adopt effective construction waste management practices at their project sites. As sustainability gains traction in the industry, the call to manage construction waste underscores the sector's commitment to eco-friendly development. Read more
  • BRICS expansion play: The BRICS crew of up-and-coming economies gave the nod to bring Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the United Arab Emirates into the mix. The move aims to speed up the revamp of an old-school world order. This is their first expansion in 13 years, and BRICS leaders are keeping the door open for more members down the line. Read more
  • AI and ecological conservation: Wired explores the innovative use of artificial intelligence to establish communication with whales, envisioning a novel approach to environmental conservation. This captivating blend of technology and marine conservation efforts reflects the potential of AI in advancing our understanding of and connection with the natural world. Read more

Dodging blundering builders


Image credits: Herald Live

When embarking on the journey of purchasing your dream home, the selection of the right builder becomes a pivotal decision.

The success of your project, its total cost, and timely completion are all significantly influenced by the builder's competence and professionalism. An experienced developer with knowledge and expertise can seamlessly manage every aspect of the construction process, from obtaining permits to executing complex structural work, while adhering to industry standards.

The importance of selecting the right builder extends beyond project completion – it provides peace of mind, knowing your investment is in capable hands.

Background and reputation: Conducting a thorough background and reputation check is the foundation of your builder selection process. This step ensures that the builder possesses the necessary qualifications and experience to successfully execute your project. It also helps in assessing their expertise in specific construction areas and their adherence to industry standards.

Furthermore, evaluating a builder's reputation provides insights into their professionalism, reliability, and ethical practices. Reviews from previous clients and industry peers offer valuable perspectives on their craftsmanship and the quality of their customer service.

Quality assurance: Ensuring the quality of construction is fundamental to any project. The quality of work directly impacts safety, durability, and long-term cost-effectiveness. Key aspects of quality assurance include:

  • Scrutinising materials for integrity and suitability
  • Examining craftsmanship to ensure adherence to industry standards
  • Verifying structural stability and compliance with building codes
  • Assessing overall functionality to meet your expectations

Paying meticulous attention to these details guarantees a high-quality result, minimising future maintenance costs and extending the structure's lifespan.

Services after completion: Choose a builder who offers post-project services. For instance, they should assist in transferring maintenance responsibilities to the residents' society a few years after the project's completion. Additionally, a builder should help you connect with potential buyers or renters if you decide to sell or rent out the property.

Grading system for builders: In the real estate industry, reputable developers are often referred to as 'A-grade.' However, it's essential to delve deeper into this grading system. To gain a more accurate assessment, examine builder ratings from independent credit rating agencies like ICRA.

Loan approval from nationalised banks: Nationalised banks play a critical role in helping individuals identify trustworthy real estate developers. They conduct rigorous due diligence, analysing the builder's track record, previous projects, and financial stability. Banks ensure that builders meet regulatory requirements and industry standards while minimising risk for buyers.

Visiting past projects: Physically visiting a builder's completed projects is a vital step in making an informed decision. It allows you to assess workmanship, attention to detail, and overall execution. This firsthand experience helps determine if the builder's style aligns with your preferences and requirements.

Architectural excellence: An excellent real estate builder prioritises architectural excellence. They create aesthetically pleasing and functional spaces by employing architectural principles such as proportion, balance, and harmony. They stay updated on architectural trends and incorporate sustainable design practices into their projects.

Sustainability measures: Sustainability is paramount in today's world. A top-tier builder integrates eco-friendly construction practices, green materials, efficient energy systems, and sustainable landscaping. They consider the environmental and social impact of their projects, promoting healthy living environments.

Timely delivery: Meeting project deadlines is imperative in a competitive market. A professional builder uses effective project management techniques, closely monitors progress, and ensures a seamless execution. Timely delivery enhances their reputation and attracts investors who value punctuality.

Awards and recognition: Awards earned by a real estate company signify its expertise and exceptional service. They validate the company's professionalism and enhance its reputation. Awards distinguish the company from competitors, attracting clients and stakeholders.

Choosing the right builder is a critical step in your real estate investment journey. Investing in the right specialist will lead to a successful and lasting building project, providing you with the home of your dreams.


What is the average commission a realty broker charges in India?
- Nagesh

Hi Nagesh,

While the rates and and split of commissions between buyer and seller varies across geographies, a good thumb rule is that the seller pays 1-2% and the buyer pays 1%. If there are seperate agents representing the buyer and seller, the overall commission pool of 2-3% is split between them in some ratio. For larger transactions, the take rates could be lower and vice-versa.

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Disclaimer: This newsletter is intended for informational purposes only and should not be construed as professional advice. Please conduct your own due diligence prior to making any decisions.

By Ashwinder R. Singh
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