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Search for property online, but buy offline

With verification and registration still being done offline, customers cannot complete the buying process online

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These days we can buy everything we need online. From daily groceries, apparel, furniture, electronic gadgets, luxury items, tickets for airline and movies, holiday packages, even cars and two-wheelers.

It is also possible to buy property online, thanks to dedicated portals and builders who offer schemes for buyers booking the property and making the initial payment online. But despite this, the digital tools are largely used to research property and compare prices. It does offer convenience, but given the perceived lack of transparency in the sector, it is safer to do a physical verification before zeroing in on the property say experts.

Online platforms aid research

According to Anuj Puri, chairman, Anarock Property Consultants, search for real estate online increased by 43% in 2017 as against the previous year, while affordable housing searches beat other segments to gain a 49% rise in the same period. This clearly indicates an increasing use of the internet for property search.

"As far as property buying is concerned, there may not be a significant increase in doing so online as this is one sector where huge monies are involved. Most people these days search their property, gather information about it, compare it with other options, and upon completing their research, approach either the builder or agents to effect the purchase after negotiations. To this effect, online research has become the most significant step in property buying today," he says.

According to property portal, magicbricks.com, it is estimated that over 80% of available properties are today getting posted online, and hence 70% of all buyers are searching homes online through real estate portals.

There are a few developers who have developed online booking platforms wherein buyers can pay a token booking amount up to Rs 25,000 to Rs 50,000 and block an apartment of their choice. Post which, they can physically visit the site and progress the transaction, says Girish Shah, executive director - marketing & corporate communications, Knight Frank India. "This is generally done during the launch phase, where buyers want to block good inventory,'' he says.

Rohit Poddar, managing director, Poddar Housing and Development, agrees that since property buying is an emotional subject, buyers always prefer to go to the site before finalising the deal. "It is a combination of online and offline. When we advertise on a portal, it is a gateway for enabling the transaction for customers, especially new generation customers. The first choice for customers is to do research online and then visit the site. I don't see this changing yet,'' he says.

Advantages of online portals/websites

Customers who do the research online are better informed and have an idea about prices. They can also get information about a project that may be outside city limits, without visiting the place.

Online platforms and websites allow homebuyers to have quick access to key information around a project from various sources. They can go to the Real Estate Regulatory Authority (Rera) website and do a detailed due diligence and understanding of the project post which they have a better understanding on whether to invest their time and energy to visit the site.

"Today developers also offer 3D walk-through and virtual reality facilities for projects that are far away. They put up tents and allow customers to see the site as it is. This gives a fair idea to customers without visiting the place,'' Poddar said.

With developers allowing payment gateways on their websites, buyers today even make the initial payment online using credit cards, instead of waiting for transfer through RTGS. This makes the process much faster.

Also, homebuyers can do a qualitative analysis and evaluation by looking at social media posts, articles, blogs and so on about the developers and the project. "Thus once all this detailing and homework is done quickly, if at all they want to block a particular apartment, they can do so by paying a token booking amount online on the developers website (those developer sites that offer this option). These are some of the advantages that allow the homebuyers to save time,'' says Shah.

Drawbacks and limits of online buying

The disadvantage is that the complete transaction cannot be closed, and one still needs to visit the site and interact with the sales and customer service teams.

While there are times when leading developers roll out offers if a property is purchased online, given the fact that we are still far behind in "real" transparency as far as online property documents are concerned, buying a home via the internet can be a risky affair. Even non-resident Indians who cannot come down to India each time they want to make a property purchase have agents or family members helping them to buy properties here.

"One can make a judgement based on the credentials and past history of the concerned developer. Also, those opting for the online route must verify all the documents concerned, either by taking them directly from the builder or from his website, if available there,'' says Puri.

Poddar agrees that as long as registration and document verification happens offline, the buying process can never be truly online, unless technology makes it possible.

How to buy property online?

Generally, many leading developers allow for a token amount to be paid online to block the apartment of their choice. This broadly is the concept of today's online transactions that are happening. However, they are also some public sector undertakings that have portals which allow buyers to access inventory of their existing residential assets that they want to dispose of and allow buyers to pick and choose from that lot and then via an offline process to complete the transaction.

"To a large extent, the verification of documents doesn't happen online. However, easy access to the Rera website allows potential customers to go online and check the details around the project of their choice. For the verification of the premises, buyers generally visit the site before taking the final decision to buy," says Shah.

Portals like magicbricks offer e-auction platform for both banks and developers. It offers a level playing field though a transparent and fair price discovery system.

However, Poddar is hopeful that in the future it may be possible for a buyer to purchase a house along with completing all the documentation just by clicking on the shopping cart of a website. "Blockchain technology will ensure the processes are equally streamlined and both parties get their respective things (title and money). It will also keep a public record of the titles, etc, which will be hack proof,'' he says.

CLICK AND VISIT

  • Property portals enable research about project, price comparison, access to developers' details through RERA website, initial payment, etc
     
  • Digital initiatives like virtual reality and 3D walk-through allow customers to get feel of the project site if it is far away through
     
  • It is also safer to physically verify the property before finalising the deal
     
  • Document verification, registration still happens offline
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