[ecis2016.org] Here is what home buyers should know about BSP or basic sale price of a property
Housing projects that come with amenities have two types of components – the basic sale price or basic selling price (BSP) and an all-inclusive cost. While the all-inclusive cost includes several other charges, such as preferential location charges (PLC), internal and external development charges (IDC and EDC), club membership charges and so on, the BSP may or may not include floor rise and one-time maintenance charges.
You are reading: Understanding basic sale price of a property
What is basic sale price?
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The BSP is the base cost per sq ft of the property, for which it is listed for sale by the seller. Usually, it does not include additional charges for amenities, floor rise, preferential location, parking and other maintenance dues.
Example of BSP
Suppose you saw an advertisement, where a 2BHK is available at Rs 3,000 per sq ft. Therefore, a 1,000 sq ft apartment would cost you Rs 30 lakhs. However, this is not the actual cost of the apartment, since there are various unadvertised charges that you need to pay over and above the basic sale price of Rs 30 lakhs. These additional costs can be up to 20% of the BSP.
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|Type of cost||Calculation||Cost|
|BSP||Rs 3,000 x 1,000 sq ft||Rs 30 lakhs|
|PLC||4% of BSP||Rs 1.2 lakhs|
|External electrification charges||1,000 x Rs 50 per sq ft||Rs 50,000|
|EDC and IDC||1,000 x Rs 100 per sq ft||Rs 1 lakh|
|Car parking space||Fixed||Rs 2 lakhs|
|Power back-up||Fixed||Rs 30,000|
|Electricity connection, water connection, drainage, sewerage||Fixed||Rs 6,000|
|Stamp duty and registration charges||6% of BSP||Rs 1.8 lakhs|
|Total cost||Rs 36.86 lakhs|
While the BSP of the property is Rs 30 lakhs, you would need to pay Rs 36.86 lakhs for the property, depending upon the amenities and other charges levied by the developer. The additional charges are almost 20% of the BSP.
What is the basic selling price?
The BSP is the cost of the constructed property which does not include any additional charges.
What are the hidden costs when buying a house?
Charges, which are not advertised, are the hidden costs such as maintenance charges, club membership, IDC and EDC, etc.
How are flat prices calculated?
Developers generally quote the basic selling price on the super built-up area of the flat.
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