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In the Indian real estate market, builders and developers often employ various marketing tricks to allure or, in some cases, deceive customers into buying residential flats. It's crucial for potential buyers to be aware of these tactics to avoid falling into traps. Below are some common marketing tricks used by builders:

1. Pre-Launch Offers

• Tactic: Builders often advertise "pre-launch offers" where they claim to sell flats at a lower price before official project approvals are in place.
• Reality: These offers are risky because the project may not have the necessary approvals, and there’s a possibility that the project might be delayed or not get off the ground at all.
• Suggested Check Point: Verify if approvals are in place or in process. Check for any litigations regarding the land and the property, as these can delay the entire launch and potentially leave you stuck with the builder.

2. EMI Schemes

• Tactic: Builders promote subvention schemes where buyers are assured that they only need to pay a small percentage initially, and the builder will take care of the EMI payments until possession.
• Reality: If the builder delays the project, the buyer might end up paying EMIs without getting possession. In some cases, builders stop paying the EMIs, leaving the buyer to bear the financial burden.
• Suggested Check Point: Verify which bank has approved the builder's project and how the builder is managing EMIs for other customers. Check the builder's credit history before opting for such schemes.

3. Misleading Carpet Area Calculations

• Tactic: Builders often advertise the "super built-up area," which includes common areas like lobbies, staircases, etc., rather than the actual carpet area (the usable area within the walls).
• Reality: Buyers end up with less usable space than they expect. Always ask for the carpet area, not the super built-up area.
• Suggested Check Point: Request the carpet area, which is a standard RERA practice. Compare the carpet area with other builders to avoid being misled by super built-up area calculations. A loading of 35-40% over the carpet area is generally considered normal.

4. False Promises of Amenities

• Tactic: Builders often promise world-class amenities like swimming pools, gyms, clubhouses, etc., to attract buyers.
• Reality: The quality of these amenities might be subpar, or in some cases, they might not be built at all.
• Suggested Check Point: Ensure that amenities are mentioned in the sale agreement.

5. Discounts and Freebies

• Tactic: Builders offer discounts, free modular kitchens, gold coins, or free parking to entice buyers.
• Reality: These offers are often factored into the overall price of the flat, and the actual benefit to the buyer might be negligible.

6. Limited Time Offers

• Tactic: Builders create a sense of urgency by offering "limited-time offers" or "last few flats available" to push buyers into making a quick decision.
• Reality: These tactics are designed to create panic and pressure buyers into making hasty decisions without proper due diligence.

7. Misrepresentation of Project Status

• Tactic: Builders might falsely claim that a project is nearly complete or in an advanced stage of construction to attract buyers.
• Reality: The actual construction might be far behind schedule.
• Suggested Check Point: Visit the site personally and check the progress. Understanding the typical construction timeline (e.g., RCC, brickwork, plastering) will help in assessing the real status of the project.

8. Misleading Advertisements

• Tactic: Builders use attractive brochures, advertisements, and digital marketing campaigns showing lush green landscapes, spacious flats, and high-end amenities.
• Reality: The actual surroundings might be underdeveloped, and the flat might not have the spaciousness or views depicted in the ads.
• Suggested Check Point: Visit the site, floor, and preferably your specific apartment to get a clear view. If the floors aren't built, ask for aerial shots from drone cameras.

9. Hidden Charges

• Tactic: Builders often advertise a flat price that looks attractive but exclude additional charges like maintenance deposits, club membership, parking fees, and floor rise charges.
• Reality: These hidden charges can significantly increase the overall cost of the flat, making it much more expensive than initially advertised.
• Suggested Check Point: Request a detailed breakdown of all additional charges. Confirm that these charges are only payable at the time of possession, and verify if any specific accounts have been opened for these funds.

10. Third-Party Endorsements

• Tactic: Builders may use endorsements from celebrities or influencers, or claim that reputed banks and institutions have approved the project.
• Reality: These endorsements might not guarantee the quality or legality of the project.
• Suggested Check Point: Always conduct your own research and verify the legal status of the property.

11. Bait-and-Switch

• Tactic: Builders may advertise a few units at a very low price to attract customers, but once interested, buyers are told those units are sold out and offered higher-priced ones.
• Reality: This tactic is designed to lure buyers with an unrealistic offer, only to switch them to more expensive options.
• Suggested Check Point: Ask for proof of the units being sold. If the builder is not transparent, this could be a bait to attract customers.

12. Unrealistic Appreciation Promises

• Tactic: Builders might promise high returns on investment, suggesting that property prices will rise significantly after the project is completed.
• Reality: Real estate markets are unpredictable, and such promises are speculative.
• Suggested Check Point: Check within the catchment area for rental yields and actual sale values. Use these figures to calculate potential appreciation and cross-check with the builder.

13. Understating or Ignoring Additional Costs

• Tactic: Builders may downplay or ignore the costs of registration, GST, stamp duty, and other legal fees during initial discussions.
• Reality: These costs can add up to a significant amount, often 10-15% of the property's value.
• Suggested Check Point: Ensure you get a complete breakdown of all costs before making a decision.

Conclusion

These marketing tricks are designed to make the deal appear more attractive than it actually is. It's essential to approach any property purchase with a healthy degree of skepticism and to conduct thorough research. Always verify the claims made by builders, seek legal advice, and ensure that all terms and conditions are clear and documented before making any commitments.

Nishka Group