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IREF® - Indian Real Estate Forum > Real Estate in India > Real Estate Pune > Cash is King - An example of artificially inflated prices
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Old June 29 2012, 07:26 PM   #11
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I tried the same but regret my decision. prices now gone up by 50 % within 2 years span.

 
Old June 29 2012, 08:23 PM   #12
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I have a different story, but similar to the one above. I wanted to sell my under-construction property at outer gurgaon. I was happy to sell at 3000 psf. Asked many brokers and no body offered more than 2800. Then I started calling brokers for BUYING property in this project, and the rates came 3200,3350, and even 3500 psf. I told these brokers that I want to sell and they all vanished. Moral of the story is that in this unorganized ad-hoc market, eveybody quotes price with a 30% margin in his favor, but no body dares to bargain 30%
 
Old June 29 2012, 11:39 PM   #13
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Quote:
Originally Posted by McLordGanj View Post
I have a different story, but similar to the one above. I wanted to sell my under-construction property at outer gurgaon. I was happy to sell at 3000 psf. Asked many brokers and no body offered more than 2800. Then I started calling brokers for BUYING property in this project, and the rates came 3200,3350, and even 3500 psf. I told these brokers that I want to sell and they all vanished. Moral of the story is that in this unorganized ad-hoc market, eveybody quotes price with a 30% margin in his favor, but no body dares to bargain 30%
Eye opener. I never thought that they have such big margin.

But i guess the demand is so high that builder never try to negotiate. They will bow down only if demand goes down or they need some urgent cash.
 
Old June 30 2012, 12:08 AM   #14
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And we feel comfortable to go with the story that dealers show us. Heck, I have seen people doing more research to decide the car purchase (See Team-BHP) then they do in deciding next home.

Half of the market has gone bad because of the dealers.

Quote:
Originally Posted by aedhole View Post
It may not be the case with everyone...!! but Honesh has put fourth the important parameter in house hunt ie. BARGAIN... we people have forgotten this...saying we may look cheap if we bargain

BARGAIN should be the buzz word in every purchase ...irrespective of market situation.
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Old June 30 2012, 04:10 PM   #15
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I agree cash is king, but my negotiating skills need improvement since I could not get such fantastic bargains from any builder.
Bargaining with the builder is an important part of finalising the deal.But as I said some builders just refuse to budge,since they are sure another buyer will come and they do come in Pune.
 
Old July 1 2012, 04:53 AM   #16
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Quote:
Originally Posted by vaibav123 View Post
I agree cash is king, but my negotiating skills need improvement since I could not get such fantastic bargains from any builder.
Bargaining with the builder is an important part of finalising the deal.But as I said some builders just refuse to budge,since they are sure another buyer will come and they do come in Pune.
well so at the end of the day there is a lot of unity among the builders to keep the prices artificially inflated at high levels, whereas we buyers show absolute no such unity of not to buy at such high levels.Go figure who is as at loss?
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Old July 2 2012, 11:51 AM   #17
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+1. Had same experience over this weekend.

Went with a friend to check few projects near wakad, pimple nilakh and felt really good, that most of the builders offices were vacant. Didn't see any bakras. At one project cost of a 2bhk 1180 sq ft was quoted as 67Lacs..spent few more minutes bargaining with the guy and last price he offered was around 62L. While leaving he again said "Sir, please do give a call...I can give you even better deal incase you book immediately". Same was the situation in next project. He offered to scrap the floor rise, incase I book immediately.

Hang on for some more time..folks..the prices will come down..and incase you like any project..do bargain hard.
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Old July 2 2012, 12:22 PM   #18
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Quote:
Originally Posted by McLordGanj View Post
I have a different story, but similar to the one above. I wanted to sell my under-construction property at outer gurgaon. I was happy to sell at 3000 psf. Asked many brokers and no body offered more than 2800. Then I started calling brokers for BUYING property in this project, and the rates came 3200,3350, and even 3500 psf. I told these brokers that I want to sell and they all vanished. Moral of the story is that in this unorganized ad-hoc market, eveybody quotes price with a 30% margin in his favor, but no body dares to bargain 30%

McLordGanj...Totally agree with you.
Same thing happened with me when I was selling my Bangalore property.
I wanted to sell at 80 lacs... But brokers kept telling me I wont get more than 65 lacs.....
Then I posed as a buyer, and same brokers told me I wont get anything in my area for below 75 lacs....
Finally I sold it at 70 lacs without broker...
 
Old July 2 2012, 12:29 PM   #19
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Guys... I visited few resale flats and few new projects directly from builders over the weekend.
For one project I went through a PROPTIGER agent who is marketing partner for that project.
I told my example of getting 1000 Rs. bargain to him and he told me that he has heard these kind of bargaining happening in Noida, Gurgaon and Mumbai.
But he has heard this for first time in Pune.....
Bottom line is Builders ARE ready to negotiate.....Just dont show your desperation.

I empathize and agree with few buyers who say that they have paid higher prices for just waiting but I think it is also a matter timing.. Right now builders are under pressure and prices are saturated.
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Old July 2 2012, 01:10 PM   #20
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@honest

Nice to hear that you were able to sell the flat without a broker.
I just wish more people try to do this so the whole broker business becomes "more value for money" for end users.

As of now whatever 1,1.5,2% they charge for transactions is just for showing flats to clients. Its really not that hard to sell flats directly if the price is right.

If any one of the buyer or seller turns out to be a fraud, broker will not be able to do much.
 
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