Significance of Property Broker or Real Estate Agent
A property broker or a real estate agent is a professional for providing service of buying or selling a property. A property broker may be an individual or a company. You may have a question in your mind if you want to buy or sell a property – do I really need to hire a broker? If you want a genuine answer in one word, it is “Yes”. You will see the advantages and disadvantages of hiring a broker in this topic.
Scenario 1: If you are a seller:
Let’s assume that you have a property and you want to sell it. There are only two options you may choose, selling it by yourself or hiring an agent. This is, somehow, similar to, cooking food by yourself and eating or food is prepared by a professional and you only eat – choice is yours. See the advantages and disadvantages below –
If you don’t hire a professional broker:
- How many contacts you have to offer your property? If you ask your friends or relatives to find buyer, are they going to find buyers for you seriously?
- Other way to find buyers is Advertisements. How much are you going to spend? There is huge advertising cost involved in conventional media. In digital platform, are you sure you can compete with digital marketer?
- Now, if you publish your ad also, are you able to take all the calls? Think seriously, you may miss calls when you are at your work.
- You may negotiate, but can you sell?
- Do you have time for all the processes during selling?
- Customer segmentation and screening is also important. Can you differentiate serious buyers?
If you hire a professional broker:
- A broker has buyers list where the property can be matched with a prospective buyer.
- A broker does continuous advertisements in conventional media and in digital platform. These advertisements generate leads of prospective buyers. Your property is also being promoted through advertisements freely and you will not be charged for that.
- A broker takes calls, follows up with customers, negotiate, do all the processes related to selling your property.
All these work has been done by a professional with a brokerage. Ask yourself; is it worth taking all the headaches for saving a nominal charge you have to spend for brokerage?
Scenario 2: If you are a buyer:
If you are a buyer and you want to buy a property, how are you going to search for your desired property? You have an option to buy a new property or a resale property.
| If you do not take the help of a broker: | If you take the help of a broker: |
| In case of buying a new property, you have to go to every developer separately and ask for the details. | A broker or broking house is like one stop shop where many projects by many developers are showcased under one roof |
| You have to search for your desired property by yourself. | Once you communicate with your criteria, you will receive several options according to your desired property criteria. |
| Builder or property owner will only show you the good pictures of the property and may hide the negative ones. | A broker will always show an actual picture of the property, neighborhoods and information which may not come publicly. |
| Negotiations may be a problem. | Negotiations have been done by requesting, nagging which may not be possible by the buyers sometimes. |
| You have to handle all the process related work. Sometimes it may affect your daily routine. | A broker will take care of all the processes to be done while you are at your work. |
Some myth and reality:
The brokerage is only for resale properties whereas, if you buy a new property, there is no brokerage charged to you. Then why not taking a professional service and advice?
- A real estate agent provides false information and fake commitments. A professional broker or agent does not do that.
- An agent makes the price always higher. In new project this is not possible as the builder or developer has a price tag which is published publicly. In resale properties also, there is no point in making the price higher as brokerage is calculated in percentage.
- Sometimes, it comes in buyers mind that if I go to developer directly, the price may be reduced as there will be no brokerage to pay by developer. This is absolutely wrong concept. Developer will not go below the price tag. The brokerage percentage is anyhow being spent by developers, so buyers will not get any relaxation.
Selecting an agent / broker:
There are professional brokers who are involved in very fair practice of business. A professional property broker maintains a system, provide service very professionally. A professional broker is treated as property consultant and adviser also. You can expect professionalism and good services from them.
Check before selecting your broker that if this is the primary business for them. This is suggested that you may get rid of any street broker or unprofessional amateur agent or any part time broker to avoid any bad experience. Anyone cannot be a broker as it requires domain knowledge and expertise. Not only buying/selling a property for end users but a professional broker will guide you for good investments in real estate also.
Conclusion:
If you can believe an insurance agent, if you do not have any problem paying your IT consultant or CA, why do you think twice for taking services from a real estate broker?
Written by: Arnab Ray
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