Extract from The Economic Times article
Group buying is typically a good strategy, be it for travel deals or buying consumer durables, as it can help you get discounts ranging from 5% to 25%. More recently, companies such as Groffer.com and Home Buyers Combine (HBC) have taken the lead in extending this principle to real estate.
...Why do developers offer such attractive deals to group buying firms when they are unwilling to do the same for standalone buyers even as a bait during a slump? It's simple. Group purchasing brings a ready, not to forget substantial, cash flow to the developer and simultaneously generates business without him having to advertise any kind of discount. It's similar to the set-up that developers share with speculators who generally buy in bulk. Such investors are able to get discounts of 30-40% since they come in at a stage when the project has not yet started and typically pay 50% of the property's value upfront and in cash. Group buying compan...