MANOJa

Using wisdom of crowds to buy a house cheaper

Asking for discounts from the local kirana store is a common ritual most follow, irrespective of the fact whether the retailer actually gives a discount or not. Whether you buy white goods or garments, you look for discounts. When you buy in bulk, retailers offer slightly higher discounts.

MORE: Using wisdom of crowds to buy a house cheaper - Money Matters - livemint.com

abhi

The websites mentioned in the article are being run by brokers only. They make their commissions on how many group bookings they take to a builder. Also, the company keeps 'control' of the group. Individuals are not free to choose their reps. Company is the rep already. They are basically brokers who have fine tuned their offering.

As mentioned in the article, "Usually brokers buy in bulk from the developers and then offload the units one by one to homebuyers."

These sites also have a similar setting and probably get preset commissions (from builder) on X number of buyers in a group that they form. At the end of the day, brokerage discounts are not passed on to buyers. Also, a customer does not have much choice.

In a typical group buying case, people with similar property interests should come together and start from there. Whereas these group buying websites have already chosen projects of their choice and then looking out for bait. (customers).

"Would love to hear your words of WISDOM" MANOJa

MANOJa

I have never personally experienced group bookings through websites, but have definitely booked in a group ( between friends ) . Negotiations taking place in groups provide better bargains/discounts, but have many inherent problems too . Mistrust, who gets what etc.. r some issues .

Most websites doing this are being run by brokers only & they use this to attract buyers to increase sales . One needs to really cautious about the Dummy buyers on such kind of websites . These sites are brokers with an new face .


I think here, the listings would be made by members & one member could be negotiating with an Builder on behalf of the group . Here also, issues marring such websites could raise its ugly head . The member negotiating on behalf of everybody else could turn turtle & could look for extra monetary & other benefits for himself . There could always be some hidden agendas .


As i said, i have no experience here & i am thinking aloud & i could be wrong here .

vatsalbajpai

Wisdom of the crowd ??????

Oh yes .....crowd bought following using wisdom.

ULIPS
UNITECH---at 400 rupees
RELIANCE POWER---IPO
SUZLON
HOUSING IN USA
HOUSING IN DUBAI
HOUSING IN CHINA---Latest
..
...
And still counting

Still somebody wants to follow the crowd....