BSK 6th stage Site rate

[rahul2020]

Hi All,

Dont know if its the right place to ask this question...

Can anyone explain how this agreement between site owner and broker works out?
Does the owner get into an agreement with broker to sell his plot only through him. why will the owner do such a thing?

Thanks in Advance

[rinku_v1]

@rahul2020: Let me answer that from my perspective.

There are 2 types of brokers:
1. One category fall under facilitators and there is nothing like a formal agreement between the owners & brokers, they are just facilitating deals with potential buyers. Places like BSK 6th stage or new BDA layouts where habitation is less & people looking primarily at investment, owner-broker deals are no longer commission based. Instead they are now at price per sqft based to be paid to the broker on completion of the sale. Having entered into this deal (informal) with the owners, the brokers now look out for prospective buyers either quoting a realistic price OR inflate rates to jack up their margins even further from the proposed deal. Note that inflating the rates to abnormal levels are due to involvement of multiple brokers in a deal & ensures each one of them get their share from it. (Thats sometimes their bread & butter).

As a seller, you are entitled to advertise your site via multiple brokers OR sell it by yourself (you can save on the margin amount you would be paying the broker).
Going with multiple brokers sometimes may give additional headaches, what if both start claiming the buyer is their party. Not going with a specific broker sometimes can result in your site not being shown to prospective buyers which can result in a long waiting period & if you are looking at a "quick" sale situation the brokers could switch roles as described in (2).

2. Other category are potentially what we see in BSK 6th stage OR any other new/proposed BDA layouts. Most of them owned the land parcels when BDA acquired them. They were inturn paid some compensation along with a good chunk of sites that they could sell henceforth. Now most of these brokers hold their sites & sell when they get the most attractive rate. Another observation, they tend to scout the good commercially developing areas in a layout & tend to enter into an agreement with the owners for a particular price, pay up some component of the deal & take time for registration. Meanwhile if they get some high net buyers willing to shell out more owing to the development hype built around, the broker works it out with the original owner & the new client.


Whatever be the case, as a owner its always good to hear from someone that the rates are ABCD psf if you are looking to hold your land. If you are looking to sell, the rates promised by the broker would never come thru since buyers now are highly informed, courtesy forums like these which is why it becomes necessary sometimes to have a direct trade-off between the 2 parties in layouts like these.

[smsbgk]

Hi All,

I would like to know whats the currect ongoing price in Banshankasri 6th stage, 5th block.
The broker is quoting 3.9k per sq feet for east facing site.
Your inputs are much appreciated.

Thanks in advance.

[brainfart]

hi all
what is current rate in BSK 6th stage 4H block
broker is quoting 3k per sq
also what are prospects in this block,( i am referring to stretch behing karishma)
thanks

[mybdaprop]

If you are planning to invest for your next generation, then you can buy at BSK 6th stage...

Currently its like desert with no houses... in 2010, the market price in BSK 6th stage was 1200 Rs/Sq ft... now brokers are telling 3 to 3.5 K per sq ft... and its really not worth the money you pay...

If you have ur dad's bribe money.. or black money and dont have official place to park it in bank.. then invest here and forget about it... Its not advisable for salaried people to invest here and keep waiting for 20 years.. that you can build home...

[brainfart]

no black money!!!looking to construct a house in 2 years maybe after basic road facility is available, how is availabilty of borewell water in this block??

[mybdaprop]

You cant construct house in 2years, and self occupy your home.. It will be toooo lonely... If you can wait for atleast 10 years, hope there will be some buildings/homes..

Currently though BSK 6th stage is BDA layout, there is no cauvery water connection.. so you have to relay on borewell(luck) or water tankers if you decide to buy and live currently..

[SachinSreepad]

Hi All,

Sorry for the long story/explanation, but I guess some of these details helps few people who are looking for more detailed information about Site rates at BSK 6th Stage.

I have been following the site rates in BSK 6th Stage for the last 3 Years & have visited many times, since I stay close by locality on Kanakapura road.
BSK 6th Stage 3rd, 4th, 5th & 6th Blocks are good locations to buy for future investments, since location-wise those are nearby reaching Kanakapura Main road and similarly Block 7,8,9, 10 are good since these are nearby to Mysore road. An Advantage of 8, 9 & 10 blocks is that the NICE road connectivity is nearby which connects the ramp leading towards PES Engg College to enter into the B'lore city.

During the 2H-2010 the rate in BSK 6th Stage 3rd, 4th, 5th & 6th Blocks were between Rs.1100~1200 per sqft & rate for Blocks 8, 9 & 10 were much lower.
Assuming there has been an average 15% per annum price increase Year-On-Year the most appropriate Site rate today during early 2013 should have been between Rs.1580~1600 per sqft in BSK 6th Stage 3rd, 4th, 5th & 6th Blocks.
However the actual situation on ground is totally different, since the Real Estate Brokers are artificially hiking per Sqft rates sky high by quoting between Rs.3500~4200 Per Sqft which is totally unrealistic prices (its a Pure Market Manipulation by RE Brokers), when there is absolutely no development or not many new houses being built, there is no cauvery water or area borewell water facility available, no proper street lights etc..
Some Brokers have obtained GPA (General Power Of Attorney) from the Site allottes who are current Owners of the Property(s) who want to sell their Sites in this area & hence the Brokers are artificially hiking the Prices to Buyers and at the same time Brokers are negotiating a lower rate to the Sellers in order to make good margin/commissions as middle-men.
I spoke to few BDA Public Relation Officers and the news is that BDA does not have any plans to announce eAuctions in BSK 6th Stage for any of the Blocks atleast until the next 2 years until the time this Area is developed with more houses build by the allottees. BDA doesn't want to come with eAuctions in this locality, since the Government Rate for the Site in BSK 6th Stage is still lower and that means it would fetch lower revenue to BDA if they announce eAuctions as against the current BDA eAuction Prices for example in BSK 5th Stage which was Rs.39000 for 111.48 SqMeters as minimum bidding price (i.e. for 1200 Sqft for 30x40 dimension plot) that costs a minimum of Rs.43.47 Lakhs as bidding price and there after Rs.100 as bid price increase for 111.48 SqMtrs.
Conclusion: It would be better to buy sites in BSK 6th Stage in any of those required Blocks through BDA eAuctions only, but for that we need to wait for a 1 or 2 years until there is good development happening at BSK 6th Stage (more people building houses), so that BDA will announce eAuctions in this locality and it would mean that you pay Government recommended Prices in that locality without being target for Market Manipulation.
Rgds,
Sachin.

[raghu_pro]

HI sachin,

i totally agree with you,
demand is more and supply is less(since bda not developed new layouts in last 10 years!!!).

This weekend KBH is allotting around 5000 sites in suryanagar phase 3. I think at least now prices will be stable for some time in south bangalore.

[lotus]

SachinSreepad,

Thanks for your detailed blog but i have different opinion.

At time of aution - Whoever is participating in the auction will derive the Market value thru the consulting with RE agents.
Hence the auction price is expected to the same as equivalent to the market value or more.

Better to buy now during the non development of the layout for higher gains.

same for Anjanapura, Smv and BSK 6th stg - BDA layouts are low risk with High gains -