Hello: I am planning to purchase an apartment in Bengaluru. I wanted to buy a 4 bhk house but such options are very limited. Hence I am planning to combine two 2-bhk houses into one 4-bhk duplex house. i have visited an under construction property at Elegant Hermitage in Bengaluru. Builder is quoting 1.1 crore for 2 BHK flat of 1260 sqft at the rate of INR 7000/sqft as per cost sheet. He may reduce by 2-3 lakhs if I speak to him. He is quoting INR 145 per sqft for water, STP, power backup and 3 lakh for car parking and 3.5 lakh for club house charges within that cost. GST, registration charges extra. I need help as to how I should negotiate the price if I want to buy two 2-BHK house and combine it into one 4 BHK duplex house. As per cost sheet builder is charging double the price for water, STP, power backup, care parking and club house charges for 4 BHK house. My overall budget to purchase this combined 4 BHK house is about 1.6-1.7 Crores. Need help to negotiate. Also if builder agrees, then will he charge for doing certain structural changes in the house i.e. for combining 2 houses etc., What should be my main points for price negotiation?
1. One of the points for price negotiation is since you are buying two numbers two BHK flats at the same time the builder is getting money for 2 Numbers Flats at the same time.
2. The negotiated final rate for buying two numbers flats should include structural changes for combining 2 houses, obtaining permission for the amalgamation of Khatha from BBMP.
Frankly no builder is going to reduce the price of flat by 50 lakhs
2) only if builder is unable to sell the flats woukd he agree to drastic reduction
3) find out sale price of other flats in the complex and rate at which he has sold the flats
4) also price of flats in other complex near the area
5) local real estate agent will be best guide in this regard
6) builder will charge you for structural changes
1. There is no special way for negotiation .
2. The law is silent about this and it solely depends upon the personal skill of the negotiator.
There's no fixed policy or law to bring the builder to agree for your offer.
It depends on negotiations and flexibility in both the sides.
If the builder is not transparent and is likely to exploit your situation, you may reconsider your decision buy the apartment in this place.
Here's how you can approach negotiating the price for your desired 4-BHK duplex apartment:
Before Negotiation:
Research: Check similar projects in the area and their pricing for 4-BHK duplexes. This will give you a benchmark for negotiation.
Feasibility: Confirm with the builder if combining two 2-BHK flats into a 4-BHK duplex is structurally possible. Get this confirmation in writing. There might be limitations due to load-bearing walls etc.
Negotiation Points:
Bulk Purchase Discount: Highlight that you're purchasing two units, generating a larger sale for them. Request a discount for this bulk purchase.
Double Charges for Amenities: Point out that you're essentially paying double for amenities like water, STP, power backup, etc., by buying two flats. Negotiate a combined rate for these considering the shared usage.
Structural Changes: Negotiate for the builder to absorb some or all the cost of structural changes needed for combining the flats. This is because it saves them the cost of finishing another separate unit.
Payment Terms: If possible, offer a faster payment turnaround in exchange for a better price. This incentivizes the builder to close the deal quickly.
Alternative: Express willingness to walk away if negotiations aren't satisfactory. However, ensure you have explored other options and are genuinely prepared to do so.
Reaching Your Budget:
With your budget of 1.6-1.7 Crore, aim for a price per square foot lower than the quoted 7000/sqft for the flats.
Negotiate a combined price for the two flats that falls within your budget, considering the saved amenity charges and potential discount for structural changes.
It needs knowledge of the prevailing markup price where you are planning to buy a flat. Other facts related to hidden charges needs to be known. You can also check prices of other builders in that area. Whether any litigation to the said property.
- You can purchase the said two 2-bhk houses into one unit of 4-bhk duplex house to save the maintenance charges as well after forming the society .
- Hence, you should enter into single agreement for the said 2 houses.
- Take help from a local lawyer to discuss with the builder.
