I was contacted by dealer(A) based in Zirakpur about a 2BHK flat first floor in CHB 63 for net 60L.
He called me for visit.I was told by dealer A that party is ready.

On arriving at site, I was meeting dealer (B) who would show me a flat. The site is developed by private builder who denied him entry to site.
I was taken to dealer office in sec70. This could be dealer B or C (not sure).

There was no seller.

Dealer C tells 2nd floor is available at 30L premium. He do not have 1st floor.
He suggested I give him 50,000 as sai and he will get a first floor party in 24 hours or 50,000 is returned. He had no clue about installments CHB(ammout/duration/number/pay dates).
He told it is impossible to get seller on table before sai. So you pay for without knowing what you are paying for.




Another interesting facts by him
- there are huge number of dealers and small no of properties on sale. So seller and buyer end up contacting different dealers and a chain of dealers is required for every deal.
- the chd 63 prices rose up few weeks back because of news of removal of 5 year hold period required for executing CD by original allotted, now that this is stayed so the prices have come down again.
- you cannot get contract with allotee for mandatory condition of registry.
allotee may demand something based on market trend. He willtry to find a good natured allotee for me :) who will be less likely to cause problem
- all dealers are connected very closely. If you ask same property from 10 dealers, this will create assumption of 10 buyers in market and increased perception of increased demand and hence raise selling rate.
(this reminded me of my experience 5 years back at Nehru place while searching for not so popular router. I asked about the Linksys WRT54G router at few shops, the shopkeeper would call on phone and say no. The next shop I visited did the same. The caller on other side of phone told the shopkeeper to tell me that "the product is not available in Nehru place and even Delhi. This is fifth shop you are asking and do not waste more of your time.")

- the high speed lifts from top company are installed so floor no do not matter and to save money by accepting his 2nd floor flat.

- the price will be 1cr after a year and similiar to 51A flats.
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  • This is the fate of tri-city. I was also in the same boat in 2010. I had dealt with property dealers in Chandigarh in 2004 and I knew about how things work in Chandigarh. In 2010, I wanted to invest in an apartment in sector 49. I tried multiple things like giving online advertisements for reaching out to direct sellers but could not escape the dealer/financer cartel.
    I ended up purchasing an apartment in 49C at least 8 lakhs expensive than the market price a month back then for the same apartment. Later I came to know from my sources that the dealer and the involved financer ended up booking an apartment from the owner at least 10 lakhs cheaper from market price. My parents tried to approach other dealer that they dealt with in 2004 just to check if he can provider a cheaper option but it resulted in a jump in price by 6-7 lks for the same apartment.
    As far as I know, this is how things work behind the scenes.
    Financer: He is the one who has sufficient (mostly black) money to crack a deal with the seller.
    Dealer/broker: Dealer contacts known financers whenever any seller approaches him to sell his asset. A meeting is scheduled between seller and financer and since financer has cash available (no loan required), dealer is able to negotiate well with seller. Generally, a bayana is done and a time period of around 4-6 months is agreed upon. Please note that financer had to put only 10% to 20% down but in the worst case he does have the holding power.
    The news about this property is broadcasted among other property dealers. Now consider the following scenarios:
    1. Buyer contacts dealer A. If dealer A holds the property then buyer is lucky enough to get property at best price. But if that is not the case, them A contacts the dealer say B holding the property and buyer ends up paying commission of three parties: A, B and financer.
    2. Buyer contacts 'x' number of dealers. Every dealer contacts dealer A holding the property and dealer A thinks that there is enough demand in the market that it’s time to raise the property price. In 2011, I met with the same party (financer) through three dealers, but by then the damage had been done.
    To conclude:
    1. Dealers don’t want to work with direct sellers and buyers as it’s too much of a hassle. Sometimes buyer backs off; other times he could not arrange funds. If a financer is involved, things become much easier for a dealer as buyer and seller are dealt separately.
    2. Whenever a financer is not involved, dealers demand for some token money like 50K to judge buyer’s seriousness.
    3. There is no easy way to get around this situation. None that I am aware off.
    Please note that in your case since the apartment will be transferred in the name of an allottee after 5 years, dealer might ask you to go via GPA agreement route. GPA is invalided by Supreme Court as of October 2011, so be careful.
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  • You areabsoluty right
    About a year back I thought of buying a aero city plot 200 square yards
    The asking premium was 21000 I told my cousin to go to same dealer I evening saying he wants to sell a plot the premium quoted was 17500

    So if you a buy a plot same day you loose 7lac in case you need to sell it

    One of the reason of the Chandigarh region slow down and stand stillismalpractise by dealers
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  • This methodology is every where.... Noida, gurgaon...et al. They donot even share phone number of buyer/seller...even after deal is done in order not to get exposed of their cut apart from commission.
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  • @safeda, as you said that the dealer in sector 70 shared below facts with you.

    - all dealers are connected very closely. If you ask same property from 10 dealers, this will create assumption of 10 buyers in market and increased perception of increased demand and hence raise selling rate.

    This dealer sounds somewhat honest as no one discloses such facts. As per your experience, if you find him knowledgeable, honest to some extent and also a big guy (I mean if he is the one who holds quite a few properties in tri-city), I would appreciate if you share his contact with us.

    There are quite a few serious members willing to invest in tri-city in near future (NRIs as well). It will be great if we can use that in our favor. In any field, I think there are at least 5-10% people that are honest and hard working. I expect the same from property dealers profession. If we can promote these dealers (5%), we will reduce our chances of falling into the trap.
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  • Originally Posted by gauravkapila
    @safeda, as you said that the dealer in sector 70 shared below facts with you.

    - all dealers are connected very closely. If you ask same property from 10 dealers, this will create assumption of 10 buyers in market and increased perception of increased demand and hence raise selling rate.

    This dealer sounds somewhat honest as no one discloses such facts. As per your experience, if you find him knowledgeable, honest to some extent and also a big guy (I mean if he is the one who holds quite a few properties in tri-city), I would appreciate if you share his contact with us.

    There are quite a few serious members willing to invest in tri-city in near future (NRIs as well). It will be great if we can use that in our favor. In any field, I think there are at least 5-10% people that are honest and hard working. I expect the same from property dealers profession. If we can promote these dealers (5%), we will reduce our chances of falling into the trap.



    I think best policy is etiher search through news papaers and most imporant is dont jump on to buy immediately as obviously then the price quotes are going to be higher...and go to different dealer as seller and buyer to get the best rate possible...and to know the clear picture...Might be helpful to some extent atleast...
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