Blunder of wanting a ‘low priced apartments deal’ with no regard for ‘quality’: a common approach adopted by 3 BHK home buyers in Hyderabad
This is a common trait with homebuyers who are looking at a 3 BHK apartment for a price of Rs 60-70 lakhs in Hyderabad. The problem is not with the budget, but with the entire approach to negotiating and wanting to bag a low priced apartments deal.
A builder in Hyderabad, especially, the one making 3 BHK homes in small plots between 800 square yards to 2000 square yards are motivated to give good pricing deals.
You have broadly two categories of builders-
Category 1 builders- the ones who give you a high-end quality product that shows
Category 2 builders- the ones who give you substandard apartments at LOW prices
How pricing influences purchase decision of LOW-PRICE obsessed home buyers?
If the per square foot price of a certain locality like Sainikpuri, Yapral for an apartment is Rs 4000 per sft, the ‘price-obsessed’ home buyers would seek the apartment for Rs 3600 to Rs 3800.
The builders who try to differentiate on the basis of ‘quality of home’ loose out because they find it difficult to sell their apartments.
On the contrary, the Category 2 builders who match the aspirational price of ‘cheaper deal-oriented’ home buyers are happy for two reasons-
1) their apartments sell faster,
2) no one expects any quality from them.
They simply cut corners, compromise on quality, and give a sub-standard apartment to the buyers.
What comprises quality construction?
- High quality of branded TMT, branded cement, bricks, sand and construction materials
- Superior, branded and sturdy quality doors, windows, tiles, fittings and accessories
- High quality branded fire-retardant electricals, switches, wires etc.
- High quality branded plumbing and bathroom, kitchen accessories that conform to ‘mid-range’ specifications of the brands being provided
- Anti-termite treatment, soil-testing based construction rigour
- All the above elements done with materials of high-quality brands, professional rigour keeping in the long-term interests of the building and customer results in a high quality offering
- To offer this high-quality, the per square foot price goes-up marginally by approximately Rs 300 per sft
- So, a substandard home may cost approximately Rs 3600 per sft in a certain locality in Hyderabad. In the same locality, a good quality ‘high-specification’ home could be nothing less than Rs 4000 per sft
- The way to find out about the quality is to simply ASK for the details of some of the elements mentioned above
What prompts a builder to compromise on quality?
- Lack of interest of the usual home-buyer on knowing what goes in the making of the apartment
- Singular focus on price, and disregard to what is being bought!
- Home buyers threat of walking out of the table over ‘price negotiations’
- Complete unwillingness on part of the buyer to listen to the builder about anything except PRICE
- The threat of losing a customer because of competition. A builder next door may be willing to give a better pricing deal, since they have compromised heavily of quality. Hence, can easily offer a low priced apartments deal. They know that the customer does NOT care about quality at all!
- The apartment, the finishing, the interiors, the exteriors etc. are NOT a point of influence towards ‘purchase decision’ for such low priced apartments deal-obsessed home-buyers, who are IGNORANT, UNWILLING and UNAWARE about long-term implications
- These home buyers get irked with the talk about ‘PAY MORE FOR BETTER QUALITY’
What demotivates a builder who is actually selling a high-quality apartment?
- Home buyers equating a good quality builder with builders who compromise
- Unwillingness of the home buyer to listen to all that has gone into making the house
- A discussion about ‘high end specification’ is viewed by the home buyer as a ‘bid to fool the customer’ into paying a higher price
- The home buyers incessant target on price makes a good builder wonder why they chose to offer ‘quality specifications’ and why the used a ‘high quality rigour’ to the entire construction process
- Hard work and quality consciousness of a good builder is punished, with home buyers walking out the door, while those who offer sub-standard homes flourish
A home buyer needs to discard this over-obsession with GETTING A low priced apartments DEAL, and instead ASK for what GOES INTO THE SPECIFICATIONS.
There is nothing wrong in bargaining, but that needs to happen once the home buyer gets a complete understanding of WHAT is being bought.
Clearly, WHAT IS IT THAN I AM BUYING is a more important question than HOW MUCH AM I GETTING IT FOR!
To quote Steve Jobs- “Be a yardstick of quality. Some people aren’t used to an environment where excellence is expected.”
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