Top 5 Ways: How to Verify A Builder’s Reputation Before Buying a Flat

Buying a flat has become common in the capital of Bangladesh. But as purchasing a flat is a lucrative benefit for the property seller, the cases of fraud sellers are increasing. That’s why it’s crucial to verify the builder’s reputation before signing the agreement.

So, how to verify a builder’s reputation before buying a flat? There are multiple ways of verifying, such as —

• Online research
• Direct communication with the builder company
• Check their company’s cash flow
• Seek legal advice
• Meet residents of their projects and so on.

As a homebuyer, you may have many concerns and doubts about the builder, which can be cleared through verifying the builder. Read on to learn a detailed explanation of the verification methods.

How to Verify A Builder’s Reputation Before Buying a Flat

Here are five proven ways how to check builder reputation before buying a property through them:

• Online Research

These days, almost all types of industries have their own online profiles. Online research helps verify a builder’s reputation from multiple independent sources. It allows easy cross-checking of the builder from various third-party reviews before finalizing the purchase. Such as:

Builder’s Website And Social Media

On the website and social media of the builder, you should be able to know about their license, awards, and certification. Besides, you can go through their project details and complete projects on their website. 

Access to these details will help you to understand whether the real estate builder is reliable.

Online Reviews

Search the builder’s name online and read through customer reviews on third-party review websites, google reviews, builder ratings, and discussion forums. You can also go through their Facebook reviews. This gives real owner feedback.

Online News

Search news articles online to check for any negative publicity or if they have any pending legal cases in their previous projects. Review websites usually fail to cover all the legal details, that’s why checking news articles is also necessary.

Industry associations

Being a member of reputable industry associations can help verify a builder’s reputation before buying a flat from them. Membership in associations requires meeting certain qualifying criteria and standards, which ensures their level of credibility and professionalism.

• Engage in Direct Communication

Verifying through direct communication lowers the risk of relying solely on advertised claims. It allows getting real feedback directly from existing customers about their experience with that particular builder.

You can follow the below tips for direct communication:

Visit the Builder’s Office

Call the builder’s representatives and schedule an in-person meeting. Make a list of your concerns and questions to make sure you can clear all doubts in the meeting.

During the meeting, you need to observe their professionalism, response, and willingness to hear and answer your inquiries. In addition, you can also ask for legal clearance and track record in papers as proof.

Communicate with Existing Clients

Instead of communicating online, you can make a brief visit to one of the residents of the previous projects. It will help you learn about their experience of working with the builder.

During in-person conversation, you can ask about the builder’s service quality and if they’ve faced any issues while purchasing a property through them.

• Take Expert Advice

Another great way of builder verification is to take advice from a professional. For example:

Real Estate Agent

You can get information about a builder from a well-known real estate agent. They should have access to information insight about popular builder’s reputations and credibility. 

Also, a real estate agent can recommend you the best builder according to your budget and concerns.

Lawyers

Taking advice from a lawyer with expertise in real estate law requires you to have a builder’s agreement or other papers that can verify the builder. Then, the lawyer can give you legal advice based on the paper of the builder you have.

• Financial Stability

To ensure the construction quality of the property, finding out the financial stability of the builder is necessary. Generally, most companies prefer disclosing their balance sheet publicly to gain the trust of the buyers. 

So, you should be able to access the builder’s financial stability easily. Besides, the Ministry of Corporate Affairs allows access to accounts of finance of the builder, too. You can learn about the following details of the builder:

• Cash flow of the builder’s company
• ROC, CIN, and company registration number

• Trust Your Instincts

After you have gone through all the above ways of verifying a builder’s reputation, you now need to narrow down your thoughts. 

If you feel everything is okay with the builder and the property, you should move forward and sign the agreement. No need to hesitate to walk away if you feel something is off or uncertain about the builder.

What Type of Red Flags Should You Consider in a Builder?

Just like you need to figure out how do you know if a builder is good, you also need to know what makes a builder not trustworthy. Here are some red flags of a builder:

• Lack of documentation like proper licenses, approval plans, and financial records brings credibility into question.
• Inability to provide positive references from past customers or associations they claim membership of.
• History of delayed projects, disputes, and legal cases related to defects or non-delivery of possession.
• Aggressive sales tactics, pressure to hurry purchase decisions.
• Vague responses or refusal to address specific queries regarding project details.
• Construction quality seems cheap based on inspection of existing project sites.
• Negative reports are widely available online from customers.
• Builder not able to demonstrate financial strength or experience building similar projects.

Conclusion

So, you now know how to verify a builder’s reputation before buying a flat from them. Remember that the verification time takes time and effort. However, it’s worth investing time to be in the safe hands while making a life-changing decision.

GLG Assets LTD is a credible, trustworthy, and fast-growing real estate company with 20+ years of experience. 

We can find you reliable builders while assisting you to verify them. You can consult with our agents to set up a meeting and talk about your needs and concerns.