All You Need To Know About Group Buying

You must be versed with the term "bulk buying". While you thought bulk buying is about buying products, this phenomena is now gaining relevance in the asset class too, i.e. real estate.

In real estate, this is termed as group buying. Let's take you through all you need to know about group buying:

What is group buying?

Ever heard developers marketing their project offering a discount on apartments in case of bulk buying? Well, this is exactly where group buying fits. Here a group of potential home buyers interested in buying a property in the same project is formed, which then approaches the developer for purchase. In such a case, the developer is willing to give special discounts or provide some special offers to these buyers.

How to form a group?

• In today's time when all of us are closely connected via social media, group buying has become quick and easy to implement. References on social media through friends, posting on home buyer groups, or even connect with potential home buyers on developer's official page as well.
• Another way is to check with developer if they know of potential buyers who have been delaying their purchase due to the price of the property and are looking for discounts.
• Also, you can check with your agent if he knows of potential buyers who are interested in the same project as you are.
• There are online platforms that specifically are designed to bring together homebuyers to make a bulk purchase.

How to approach a developer?

Once the group is formed through a common platform, buyers can then approach the developer. In case you have formed the group through a common platform or with the help of a common agent, let them approach the developer. Using their skills they could negotiate with a developer and get you best possible discounts. The developers generally offer a good bet as they see an opportunity of selling multiple apartments in one go.

A win-win situation

In a market which is witnessing a slowdown and inventory overhang is reaching new highs, this model can prove to be a boon for both the fence-sitting buyers and also, for cash-strapped developers.

For buyers: For those looking for attractive discounts, this could be a great way to gain some. Being a part of the group can get you better discounts than you would have got as an individual buyer. Moreover, as a group you could also reach out to service providers like banks, lawyers, and compliances and avail group discounts there too.

For developers: This is an opportunity of selling multiple apartments in one go. Additionally, this sale of multiple apartments will get the developer a large sum of down payment, making room for completing the existing project (if in under-construction stage) or begin to invest in new project. Thus, this down payment becomes a blessing for the cash-strapped developers. This also creates a market for the developers for their future projects, too, once these buyers have bought the property an indirect marketing takes place. The buyer tends to market the developer as well as the group buying model to their acquaintances. 

Also Read: 9 Tips to Negotiate A Good Deal