Delay In Possession, Hidden Costs: What Challenges Are Homebuyers Facing During Purchase?

When Neha Shah, a doctor from Mumbai, was handed the keys to her new apartment, she thought that was the end of her house-purchase journey. She thought her days of worry were over, instead, they had just begun. “While purchasing the flat, there was no discussion about the parking charges,” she says. “But post-possession, we were asked to pay a quarterly sum of Rs 50,000,” she states.

Neha had expected Rs 5,000-10,000 at most. Such an unexpected cost was a rude awakening for her. Stories like these are alarmingly uncommon among homebuyers today. A recent report by the Guardians Real Estate Advisory finds that hidden costs, in addition to delay in possession and builder trust, are some of the consumer pain points during their purchase journey.

Timely Possession, Unmet Promises: A Growing Concern

For Amisha Sanghvi, the stress of waiting for final possession was something she hadn’t budgeted for. “Possession was promised in one month, but it took two,” she shares. The delay in her case seems minor compared to the multi-year wait many face, but the uncertainty takes its toll on the buyers.

“While purchasing the flat, they promised a carpet area which when we actually started living was lesser than promised. Once we got the possession we were told by sales reps that any construction work could be done, however, the builder is not permitting us to extend the balcony now,” she shares.

This is another pain point for real estate customers. Promises made during the sales pitch often don’t match reality. More often than not, builders or brokers make certain promises to prospective homebuyers that are never met. In Sanghvi’s case, she was told her balcony could be extended, however, the builder refused permission post possession.

Ashish Chawla, who toured countless sample flats, before settling in a property, echoes this sentiment. “The sample flat looked perfect, but the tower was in another location entirely,” he explains. “ You don’t really know what the final product will look like until it’s too late.”

Ashish too has to wait two long years to get possession of his flat.

Costs That You Can’t See

Hidden costs are perhaps the most concerning issue for homebuyers. From parking charges and maintenance fees to stamp duty and registration costs, many expenses pile up quickly and take homebuyers by surprise.

The Hansa report by Guardians Real Estate Advisory finds that 64 per cent of buyers were blindsided by such costs. Builders often provide a ‘box price’ which supposedly covers everything. However once the deal is done, the fine print comes into the picture.

“They took 2 years of maintenance in advance and additional parking charges which we weren't aware of earlier,” says Heena Thakur, a businesswoman. She adds, “We are not allowed to build grills for our houses and there is no space for drying clothes. We are not allowed to hang our clothes outside for drying.” All these factors combined brought great disappointment for Heena who was not ready for such post-possession surprises.

For many, like Dinesh Fariya, a businessman - securing a home loan becomes particularly challenging. “Since most of my business is in cash, getting a loan was a struggle,” Fariya shares. The builder eventually stepped in to help, but not without extra hoops to jump through.

The common hidden charges associated with a property purchase are as follows:

- Parking Charges

- Interior expenses

- Stamp duty and Registration

- Floor charges

- Advance annual

- Maintenance deposits

- Processing fees on home loan

- Additional construction costs

- Extra charges for location preference

Finding The Right Broker: An Uphill Battle

The report further highlights that most homebuyers struggle to find credible builders and brokers. They often fall prey to misinformation about payment terms, project timelines, and even property rates.

Nearly 45 per cent of respondents cited issues with unclear payment structures, while 27 per cent said they couldn’t trust brokers or sales representatives.

One of Ashish’s friends faced water supply issues despite being assured of 24/7 availability. “They gave a verbal commitment during the sale, but after moving in, there were frequent water cuts,” he says.

For many homebuyers, like Neha, Amisha, and Heena, the experience of buying a property is not just about making a financial investment but also an emotional journey of securing a home. Such challenges are often stressful, if not deterring, for real estate customers.