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Published: 6 december 2019 14:24

Advice for apartment buyers: one decision will guarantee value for the future

Vaizdas iš Vilniaus šv. Kazimiero bažnyčios varpinės
Valdo Kopūsto / 15min nuotr. / Vilnius

Real estate market in Lithuania experiences boom: in the capital alone almost 5000 apartments of new construction can be bought at the moment, and the buyers can choose from the economy class in the out-of-town into the higher class in the old town. If the wanted place, the size of apartment and its layout, the surroundings of the house and other advantages are chosen, the conditions of buying are established, does it seem that the visit to the notary and a pleasant delivery of the keys is what is left?

Market specialists advise to slow down and make decisions only when a wanted project developer is critically evaluated. If you want to live in a house which is built with quality, and which will retain its value in the future, it is important to evaluate which company will guarantee those criteria.

Value for the future

Aurimas Astramskas, the partner of real estate consultancy company Solid Real Advisors, says that you can put an equal sign between the reputation of developer and the quality of the offered product in cases of almost one hundred per cent. This aspect is significant when evaluating the fact that a lot of apartments are bought in unfinished projects during the economic growth.

“At the moment a big part of clients, both private who search for new apartment and business representatives who search for offices or other spaces, conclude agreements in advance. Often reservations or preliminary contracts are concluded even when developers do not have a building permit. A reliable developer who has a good reputation and experience in the market means a better chance to receive what you have chosen from visualizations and have seen with your eyes,” A. Astramskas reveals.

The developer’s reputation is also important if you want to sell the apartment in the future. According to Mantas Umbrasas, the Sales director of the company “Darnu Group”, one of the biggest companies creating spaces for living, business and rest in Lithuania, Lithuanians do not buy an apartment for the whole life anymore and they are willing to move when the requirements are changing: when a family becomes bigger, a job is changed, or when an opportunity to move to an apartment of higher class arises.

“You have already made notice what have built the apartment you are buying; therefore, you can be sure that this will be evaluated by the future buyers. Reputation is obtained by a quality job within a long period of time and it is a universal currency for hundreds of years. Within this time the investor itself acquires experience of the huge importance and the projects developed by him become only better, more interesting and the ones that create a bigger value to the residents,” M. Umbrasas is confident about.

According to the specialists, the price and space are not the sole important factors when a new apartment is chosen. Reliable developers choose quality materials; follow the principles of sustainability in the construction and in the designing in the concepts.

“If to talk about the developers who are responsible for their reputation, such aspects as the usage of modern technologies, investment into more creative decisions that give more value to the residents and the town must be noticed,” A. Astramskas adds.

Continues ones work

According to the specialists, the developer’s actions in the public space talk a lot about the developer’s reliability: e.g. the number of litigations with clients or complaints in the social media. It is important to know that information if the company had any litigation due to rejects or hidden defects can be found in the programme of the court information system LlTEKO. If an unreliable developer or a developer with an unknown reputation is chosen, buyers often face different risks. A. Astramskas says that the biggest risk is to get what was not promised in the presentation of the project, or the jobs will be delayed a lot.

“There are sometimes situations in the market, when the project completion time changes significantly once the payment of reservation or preliminary contract is done. That could lead to unexpected expenses for a real estate buyer, often with financial obligations to a credit institution. There is another situation when warranty obligations are not met. This problem is more likely to occur when the item of property is bought from the company which has been registered for a particular project but not by a reliable developer. On the contrary, quality and meeting promises, doing things within an agreed period of time – these are the aspects that talk about a reliable developer”, A. Astramskas takes a note.

A reliable real estate developer usually determines the terms of beginning and end of construction and takes responsibility that the building will be suitable for use in the preliminary contracts of purchase and sale of an apartment. In case of violation of the conditions of the contract, the developer takes care of the possible sanctions.

M. Umbrasas adds that it is important to take notice if the project developer stays to administer the building after its delivery.

“Responsible developers invest not only into buildings but into a quality, lasting infrastructure in them and comfortable environment. Moreover, the environment becomes a more important factor to the buyers and experienced developers try to secure its bigger variety and practicality – all people want to live cozily and comfortably. Therefore, developers of quality projects usually foresee spaces for the most important services near the residential buildings or in them”, M. Umbrasas mentions.

He adds that it is important to take notice of the responses about the company, the projects it has already implemented, to find out if the developer sells the apartments himself. It is the sign that the specialists who know the wishes of the buyers best contribute to the project at the start of its creation. Modern developers closely follow the news of world market and apply the most successful ones in our country. For example, terraces became very popular in Vilnius in such a way.

“You can always evaluate the implemented projects with your own eyes, take a look into experiences of their operation. Reliable developers always are known by long-term plans, publicity and clearly stated company’s philosophy; therefore, the question of reputation is on the top of list of priorities together with the quality, innovations and implementation of visions for them,” M. Umbrasas states.

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