How to choose a developer when buying an apartment
Acquisition of real estate is a major investment that requires a balanced approach. If you don't figure out how to choose an apartment in a new building correctly, you can easily get to a dishonest developer.
What could go wrong? It's not even about scams, but about unpleasant consequences that you can’t avoid post factum. Delay in commissioning, poor-quality utilities, a halt of construction… A lot of problems may arise through a fault of a developer. There are always risks, and your task as a buyer is to minimize them.
The good news is, it's not that hard to do. In our new publication, we figure out how to choose a developer when buying an apartment and not regret your decision.
We’ll not talk about the obvious things like a detailed check of the terms of a contract and that the new building should be located in a comfortable area of the city. Instead, here are some practical tips to help you avoid mistakes.
Choose an experienced developer
Reputation is everything. And the developer's good reputation is evidenced by his successfully completed projects. Therefore, the most effective way to buy an apartment in a new building safely is to sign a contract with a company that has already built several apartment complexes.
It doesn’t mean that a new developer on the market is a fraud. But if you want to reduce the risks, choose an experienced developer. Perhaps, it’s the most objective assessment of his reliability. If at least one project is completed and investors have no complaints about the company, the risk of problems goes to zero. And it also means that most likely the company doesn’t have financial problems.
Even if a company has already completed several projects, the risks still remain, albeit minimal. The second criterion in favor of the developer is positive customer reviews.
First of all, check what they write about the company on the Internet. To do this, visit any reputable portal dedicated to real estate, or look at the comments on social media. But we don’t advise you to focus only on reviews on the Internet. Acclaims can easily be faked, just like negative comments. Better talk to investors directly. They, again, can be found on social media or simply through friends. Who other will tell you about all the possible pitfalls and whether it’s worth choosing an apartment in a new building of this developer at all?
Visit the location on your own
Perhaps this advice on how to choose a reliable developer seems trivial to you, but you shouldn’t ignore it. If you are interested in several offers from different developers, don’t focus only on their websites. Better take your time and visit all the apartment complexes that you liked. It applies to the construction site and already built and commissioned houses. In the first case, you'll make sure that the new building is really under construction. In the second case, you will evaluate the infrastructure of the apartment complex and the area around it.
Analyze the price information
Cost is an important criterion when choosing an apartment for many of our fellow citizens. Of course, saving money is nice, but something else is important: good real estate can't be very cheap.
The price per square meter depends on many factors. In order not to talk about pricing in detail, let's consider several main criteria that affect it:
location of the building;
reputation of a developer company.
In general, the cost is proportional to the status and comfort. If a new building is located on the outskirts, the cost per square meter will be below average. But the too low price of an apartment situated closer to the city center in an area with developed infrastructure should alert you.
The same applies to the construction stage: an apartment in an already built house is always more expensive than if you buy it off-plan. And especially if the apartment is already renovated (there are also such offers on the market). If you want to save money and buy a property in a good neighborhood, it's better to invest during the construction phase.
All these recommendations will help you not to make a mistake and be sure that the purchase will go smoothly, and you’ll move into a new apartment as soon as possible.
Let’s summarize. Buy an apartment from a trusted developer who has successfully completed at least 2-3 projects and has a good reputation; visit the location yourself; analyze pricing. As a result, if everything suits you, feel free to invest in the real estate of this developer.