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Why Buying home is so much difficult in India?

1) Buying a home is a dream for everyone but the process is far from doable for a Layman
2) It requires to deal with Multiple agencies, which makes process lengthy and cumbersome for a common man
3) It has a great scope of improvement even in a given legal framework
4) What is a reason, which is stopping that improvement to happen?
5) What AKT Associates are working to make Home buying experience hassle free?
6) We are trying to fit your home in just one window; we call it Project One window.

Recently I bought a raw house and concluded all process from loan to registration to Electricity bill transfer, It took me more than two months to close the transaction and my office work was almost got out of the track during this process. This all despite the fact, myself I am a Chartered Accountant and aware of most of the procedures.

Buying a home is one of the major happy events of life, don’t you think it should be memorable rather than daunting. By the time all procedure, documentation, and formalities are completed you feel exhorted rather than happy and want everything to settle down quickly so that you can take some rest.

Compare this with buying a car or new TV, don’t it feels that home buying experience should also be simplified and there is lots of scope for improving this experience for an actual buyer.

If I categories the whole home owning process stage-wise it will be a somewhat following way: –

  1. Home Hunting or Home searching
  2. Pre Agreement legal work
  3. Agreement Registration
  4. Home Loan approval
  5. Final Deed Registration
  6. Transfer in records of Development authority  (if Any)
  7. Change of Name in electricity or Municipal Records (If required)

Broadly all these activities we need to connect with following professionals 

1) Real Estate Agent: – For Home Search
2) Lawyer: – For Property Search to Drafting Agreement and registration
3) Chartered Accountant:- To deal with Tax and related issues
4) Home Loan Agent or Bank: – To Get a home loan
4) Documentation Agent:- To get registration at  Registrar office and transfer of name.

Well, there can be few more players depending on location and type of property you are buying.

Just I was figuring out, why can’t all these services be integrated and provided by one entity?

It will be far easier and convenient to deal with one agency rather than tango & tune with multiple people.  It will be such a relief for the homebuyer who is already in tremendous pressure for fund arrangement never to mention the black and white portion.

Even you may also be wondering what it is quite feasible but why there is no such agency. Why Brokers services are limited to just matchmaking?

I personally talked with some of the industry players, such as builders, Agents, and even some Lawyers. The output is summarized herewith: –

  1. Broker-Builder-Investor nexus: – Builders are concerned with selling, while brokers about their 2% who cardamom about buyer ‘s convenience. He is lowest in the pyramid so can’t command the terms.
  2. The property market’s real customers are Investors & Brokers (Not to Forget Black money hoarders)  (Not actual homebuyers) as long as they (Investors & Brokers)are happy and builders can do roaring business. It holds true for Builders, Banks, lawyers and even CA, All are getting their business through Brokers or agents so the home buyer is not an entity, so why to bother about them. It is akin to for Car repair business mechanics are a consumer and they are real users for the company and not the person who actually uses it.
  3. For Brokers, if they receive 2% just for matchmaking why to go further, first the buyer will not pay extra for value-added services (Like 2% itself is heavy for them) so why take extra efforts. In the case of new properties, the commission is received from the builder, which is fixed, They (Builders) need more customers and not bothered about customer convenience. As long as walking  -in and Bookings are happening it is not a concern for Either Builder or Banker or Government.

What we are doing in these regards?

After getting my first-hand experience on the issues, which a Homebuyer is facing today, my team has contacted some startup and even experts who are working in this field and discussed the issues. We are working in this area to launch some services, which can reduce the time period and complexity and buying a home can be a really pleasing experience. For an Integrated experience, we are working with all stakeholders of the Real estate industry and keep you updated on development.

Now it is a million dollar question I want to ask from all of the readers, how you can force the industry to become more customer oriented. I require valuable feedback from all of you, whether you will love to have all these value-added services if an agency come forward and provides you without charging any extra fees for same.

Disclaimer: – I am not generalizing all agents, there are real estate consultants who are extending their support post deal as well and have created a robust customer support system. But I am talking to an overall system. So kindly don’t see as an offense to anyone.

 

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