Expression of Interest (EOI): Be aware of this program

Expression of Interest (EOI): Be aware of this program

 Date: 12-Jun-2021

I came across this word recently when I was dealing with one of the upcoming new project’s sales executives in Mumbai. Expression of Interest, a token of hard earn money you should give to the builder for the property where inventory (unit) is not ready or not even on the paper sometimes. Builder call this as Prelaunch / Launch offer while selling the new project, where project has launched, there is no sample flats sometimes to check. Below are the use cases where builder lure the home buyer while asking for Expression of Interest.

• During prelaunch of the Residential projects
• During Launch of the residential projects
• During new phase under the same project, while having new tower
• During Prelaunch and launch residential plots
• For the Project which has not been registered under the RERA, (it is going to be registered)

Many people I have seen who get trapped under this option, why I call this as trap, you will come to know in some times. Some Builder play with the home buyer’s dream and they come up lot of offers in terms of Payments, Gift, Discount, Subvention schemes etc. Home buyers when come to know about such offers and make their decision to visit the project. When they make up their mind to visit, they will be asked by Sales team to take their family members along with for decision making.

When Home buyers reach to the place, they will be given world class treatment on the Sales premise. They will be shown a project details on Piece of Paper (sometimes) and ask to select the inventory. When Home buyer ask, where is the inventory, Sale team pitch in. They make the home buyer to feel like they are making world class decision which they will not come across in coming 10 years, so they need to act NOW. Home buyer will become clueless and could not be able to take decision due to confusion in the Mind. Here comes the Homebuyer’s accompany, a family member like Wife, Father, Mother etc., to whom now sales team will approach and ask to convince the actual home buyer.

Now home buyer will make his or her decision and give the Expression of Interest, for the property which do not exists in the World. While coming back to the home, the Home buyer will now come to know he or she was in trap as they was confused so much during this process, they could not decide what going on, and Builder’s Sales team have taken the full understanding of the situation and made Non-confused Home buyer, so much Confused to take the buying decision and selling the unit which does not exists in the World and sometime on the RERA.

Below are some of the projects which I came across,

• The Developers- Thane Extension Projects
• Plot project by Abhinandan Lodha, Dapoli Location
• Projects in Virar/ Vasai area

     Reference video by Mr. Krishnaraj Rao

      

Now a days, a new trend is going on. Give them an Image of the Cheque on messaging app and book the flat. I was surprised with this new way of fooling the customer.

Below are some of the points which every new home buyer needs to consider while going for House buying,

• Take as much as information as required from the sales team or builder while visiting the project. Like Floor plat, blue print of the project, project phase details, Payment plans, Any offers/ Discounts, legal documents or EOI application document etc.
• Do not take your family members along with you while visiting the project. Take someone who have good experience in understanding the property and related terms and conditions.
• Do not select the property on the single visit, make multiple visits to check the progress.
• Do not think this is the end of the world. There are lot of properties available in the market.
• Read the terms and condition carefully before signing any documents.
• Ask for document wording which sales team pitch you while discussion. It can be giving some lucrative offer, any favor etc. Keep a note of it and ask for documentary evidence.
• Do not pay the Expression of Interest for project where work has not been started or completed. Accumulate this amount and make a down payment to buy the unit.
• Now a days, Builders are asking for Expression of Interest, online. Where home buyer has seen the project online, on slides. Not allowed to visit the project and see the site. This EOI is also somewhere INR 1,00,000 to 3,00,000, which is huge for Middle class community in India.
• Do not give them your budget preference, instead ask for what is the cost of the inventory you have. You check the project overall cost and call them.
• Give as minimum details as required to the sales team, as they may use this information to confuse you and at the end make you to buy the unit/s which you are not interested.
• One can go for fully constructed projects. As this is the actual inventory where home buyer can touch, feel, check and understand the property.
• Consult a Property Lawyer, pay him a legal fee and get the legal advice from him. This is a good investment; one has to consider.
• Do you calculation of Cash flows before going to the Projects and selecting the project. Cash flow means, what is the payment structure Builder is offering and how is your stream of funds will come and get into the House buying.

Some of the tag lines which Builder’s sales team use to confuse the home buyer, and one needs to see this as gimmicks only and do not take it seriously,

• Sir/ Ma'am, you have options to choose your favorite units, before someone blocks it.
• Sir/ Ma'am, this offer is applicable for the next few Minutes/ Hours/ days, you need to take the decision immediately.
• Sir/ Ma'am, just give the expression of interest of INR and block the units, and if you do not like will refund the EOI in 60 days’ time.
• Sir/ Ma'am, we require only Image of the cheque on So and So name to give you the privilege access to the property selection.
• Sir/ Ma'am, in next few days the price of the property is going to be increased by INR 5 lakh, so take your decision accordingly.

 

Buying a new home is cumbersome process and it require lot of effort by the home buyers.

Home buyer needs to identify the property as per their preference, not as per the Builder’s preference.

Have a specific home prototype in your mind and stick to the same through out the project identification process. For example, if home buyer requires 1 BHK flat with min 480 Sq Ft area, then do not compromise on this size. Deviations are allowed but should not be more than 10% down and 10% up.

Have a checklist which have details of the Project, person, cost, location, completion timelines and other details, before going for project view. This checklist will help in the selection process.

Disclaimer: The above information is my personal view, which I have come across my interaction with the different Project’s sales team. Project which I have mentioned in the article, I am not promoting them. I am just informing the reader that, how the builders are coming up with different approach to sell their properties, and how buyer should take care of things, before making the decision.

I follow Mr. Krishnaraj Rao on YouTube and will provide his video link below for better understanding on how to deal with sales team and what things as a buyer require to understand before home buying.

https://www.youtube.com/c/KrishnarajRao1965Mumbai

https://youtu.be/5BApBufQZDQ