Hi

I have recently purchased a plot in Greater noida and had to slog it out with the financiers who operate on the following modus operandi.

They first get hold of a NEEDY seller and strike a bargain by paying 10% of the deal amount and time limit of three months.(Say deal is of 50 L ,he pays 5L) and then start looking for a buyer. the base price is set like this

1.Assume a property appreciates by about 12% per annum (a conservative estimate by these days standards)

2.Now, since the deal is to be finalised in one quarter, the appreciation on

Total ticket size is atleast 3% (12% divided by 4 as year has four quarters).
However, since financier has paid only 10% of the total cost as bayana, he has a more or less assured return of a whopping 30% on his investment(1 lakh 50 thousand)

Thus , once he pays the bayana, he starts looking for a buyer with ridiculous quotes of about 10% higher price of the total amount(in this case 55L) and even if he is not able to find one in 3 months (which is very rare),he settles for the 1.5L gain (which is the legitimate? rate of appreciation )

Thus,he gets anything from 100% -30% gain on his investments. period
The actual sellers are just not there in the open market as even before you and me can meet them, they have been lapped up by these financiers.I searched for six months a direct seller and on not finding a single one, finally ended up buying from one of these chaps, fully knowing and in the end paying them their share of the pie.
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  • Originally Posted by jatinder1234
    Hi
    I have recently purchased a plot in Greater noida and had to slog it out with the financiers who operate on the following modus operandi.
    They first get hold of a NEEDY seller and strike a bargain by paying 10% of the deal amount and time limit of three months.(Say deal is of 50 L ,he pays 5L)
    and then start looking for a buyer. the base price is set like this
    1.Assume a property appreciates by about 12% per annum (a conservative estimate by these days standards)
    2.Now, since the deal is to be finalised in one quarter, the appreciation on Total ticket size is atleast 3% (12% divided by 4 as year has four quarters).
    However, since financier has paid only 10% of the total cost as bayana, he has a more or less assured return of a whopping 30% on his investment(1 lakh 50 thousand)
    Thus , once he pays the bayana, he starts looking for a buyer with ridiculous quotes of about 10% higher price of the total amount(in this case 55L) and even if he is not able to find one in 3 months (which is very rare),he settles for the 1.5L gain (which is the legitimate? rate of appreciation )
    Thus,he gets anything from 100% -30% gain on his investments. period
    The actual sellers are just not there in the open market as even before you and me can meet them, they have been lapped up by these financiers.I searched for six months a direct seller and on not finding a single one, finally ended up buying from one of these chaps, fully knowing and in the end paying them their share of the pie.

    This leads to a curiosity...why do actual sellers do not come forward and advertise directly..especially when online advertising is just a few clicks away. I do'nt understand this practice. Why do sellers have to invariably go thru a broker???
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  • This is called business.

    As a seller
    I trust my known broker than an unknown online ID
    I am happy with my expected price
    I don't mind if my broker friend earns a bit extra over my expected price.

    Just put an online free ad and see the type of phone call you receive.
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  • Originally Posted by gharondabhai
    This is called business.

    As a seller
    I trust my known broker than an unknown online ID
    I am happy with my expected price
    I don't mind if my broker friend earns a bit extra over my expected price.

    Just put an online free ad and see the type of phone call you receive.

    Friend,

    You are right in what you are saying. However, what if you do not have a trustworthy broker. What if you want to reach out to a larger audience to determine the true selling price of your property rather than trust just one person's version...in an environment full of distrust. The instances of brokers making merry of the difference in the real buying price and the consideration actually paid to the seller, in addn to the brokerage, are happening every now and then.

    See, any normal person would not mind paying brokerage PROVIDED the broker does the right job...i.e. try n get max price for the seller and confine his fee to the level of brokerage.

    By making an online ad, at least one can reach a larger audience...and test his expected price and finally whether or not a broker is involved, he is concerned with getting HIS price...

    Finally, you are right when you say to try out putting an ad and see the useless calls...I did experience it....my precise question is why it is so...why not prospective buyers can respond directly to such advts by owners themselves. Mostly advts are being put by brokers...is it not a sub optimal use of the fast electronic media where the reach is supposedly unlimited?
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  • Originally Posted by VedKapoor
    Friend,

    You are right in what you are saying. However, what if you do not have a trustworthy broker. What if you want to reach out to a larger audience to determine the true selling price of your property rather than trust just one person's version...in an environment full of distrust. The instances of brokers making merry of the difference in the real buying price and the consideration actually paid to the seller, in addn to the brokerage, are happening every now and then.

    See, any normal person would not mind paying brokerage PROVIDED the broker does the right job...i.e. try n get max price for the seller and confine his fee to the level of brokerage.

    By making an online ad, at least one can reach a larger audience...and test his expected price and finally whether or not a broker is involved, he is concerned with getting HIS price...

    Finally, you are right when you say to try out putting an ad and see the useless calls...I did experience it....my precise question is why it is so...why not prospective buyers can respond directly to such advts by owners themselves. Mostly advts are being put by brokers...is it not a sub optimal use of the fast electronic media where the reach is supposedly unlimited?


    Simple reason .. India is full of crooks, everywhere.

    I never said you trust your broker. You do your own survey, understand value of your property and then ask the broker to sell at your expected price. If he managed to sell at a better price than your expected price, I don't mind that.
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  • That's the problem. Broker will say..I will buy this for your expected price..Add 5 lakh extra profit ,and put it on market themselves.

    I think sellers who are not tech savvy are not putting their properties/plots online. In flats cases, it is high-tech junta..in Greater Noida plots case..depends who is holding the plot.
    I can never imagine my father putting an ad himself ..he will go through broker

    Internet is great medium to remove these useless / bloodsucking intermediaries.
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  • Originally Posted by ncrinvestor
    That's the problem. Broker will say..I will buy this for your expected price..Add 5 lakh extra profit ,and put it on market themselves.

    I think sellers who are not tech savvy are not putting their properties/plots online. In flats cases, it is high-tech junta..in Greater Noida plots case..depends who is holding the plot.
    I can never imagine my father putting an ad himself ..he will go through broker

    Internet is great medium to remove these useless / bloodsucking intermediaries.


    On the contrary, internet is a scary medium for transaction. You have absolutely no control of who gets your information. I once tried online selling of property and I will never try it again.

    Think this, a small time gangster knows that u r selling a 1Cr property and there is a easy way to make few lakhs for him!!
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  • How will that gangster make money ? It will be seller choice whom to sell ..isn't it? I don't see any other way to connect buyers and sellers directly.
    IMO, Brokers cause more headache as they represent both buyer and seller...perfect way to hide information.
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  • I own LIG in Sec 12, which I am selling but it seems when you post online ad you only get calls from the dealers. India is probably handling 65% of IT for US yet majority of people still don't bother to look at sites like 99 acres and meet real sellers directly. It's easier to put a for sale board outside your house then going through all these routes.
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  • Originally Posted by ncrinvestor
    How will that gangster make money ? It will be seller choice whom to sell ..isn't it? I don't see any other way to connect buyers and sellers directly.
    IMO, Brokers cause more headache as they represent both buyer and seller...perfect way to hide information.


    yes what if the broker himself has links to some goons or gangsters ?
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  • I am in the process of buying in GNOIDA and experienced exactly the same situation. Further, the discovery of a fair price is very difficult for both sellers as well as buyers as the market is dominated by brokers/fnancers. That's why, there is a wide gap between 'bid price' and 'ask price'.

    I think people (the real buyers/sellers) should share their price details on this forum so that it can benefit all of us and we can cut down brokers (or at least useless financers).
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  • To add another prespective to the issue
    I have realised that there are broadly four types of sellers
    1. First type- these sellers are actually NOT sellers in the real term.They have just given their plot No to a lot of brokers at sometime for the sake of maza (for that feel good factor which one gets on knowing the appreciation in their property rate). If you approach them with a firm offer, they back out sighting weird reasons like wife, children not agreeing to sell now,oh i have changed plan to sell etc,etc
    2. second type- who have planned to sell , would respond , will have meetings and then suddenly start asking for higher rate ( again saying things like rates have appreciated now due to so and so reason ) and would invariably back out
    3. third type : either their property is not at a good location or they would have some issues with authority . Hence, as a buyer, you would back out. Financiers wont touch these plots and you wont ,either
    4.lastly , are those who have some urgent need for money,have a decent location plot , financiers pounce on them to make a kill. these financiers work in a syndicate that is as soon as such Murga (seller ) comes to any one of them, he either makes a deal if he has 10% cash ready or tells others in the syndicate to make a killing. Hence, it is very very unlikely, such a seller would reach you directly.
    Sad but true
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  • To add
    These financiers are equally active on the internet as well and would have already made a deal before you can reach the seller, say on a weekend, holiday etc
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  • Same issue is with me, most of these guys who are wanting to buy my LIG are financers. I straight up told them no. Thinking of just putting for sale sign on the front door. I am in no hurry so will wait for the right person.

    Any suggestions are welcome.
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  • Originally Posted by gharondabhai


    Think this, a small time gangster knows that u r selling a 1Cr property and there is a easy way to make few lakhs for him!!


    This can't be a good reason to avoid selling/buying via online ad..
    The financer/broker whom u give the task of selling is anyway going to put the ad in market.. online and otherwise... so goons will anyway figure out that you are selling a 1Cr property...

    Cheers,
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  • Sir ji,
    Agar aap real seller hain to aap sirf aapne asking price se matlab rakheinge.
    After haircut, where that hair is going --=not my business.

    If u are real seller.
    Yes you need to access the market value == Then don't worry financers/brokers/taanka

    Please think my idea /

    Cheers.
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