Agents and Brokers are often
clubbed together but they represent different categories of professionals.
In india, the terms agents and
brokers, in the real estate parlance are used in intermittently, though both
represent different categories of professionals, especially in developed
economies.
An ‘Agent’ is one who
front-ends a transaction. He identifies the clients, shows them their desired
properties, highlights the features and details of each of the properties,
negotiates and finalizes prices, facilitates their shortlisting and closes
deals. Though, he works mostly on his own, the Agents is dependent on a Broker
for his identity, office, market knowledge, details of listing, tie-ups with
developers, referral clients and deal closures.
On the other hand, a Broker is
the owner of a realty broking business, has an office of his own, employs or
managers a team of agents and ensures delivery of quality and requisite
services, value-added support and above all, customer delight, through his
agents.
A Broker
ü Trains his
agents.
ü Helps them
in carrying on with their day to day business.
ü Upgrades
their industry know-how and knowledge on various aspects.
ü Helps them
with new technologies and referral network tools.
ü Above all,
mentors them to practice ethical and transparent real estate.
How do you choose an Agent?
In case of going for an
independent agent, one needs to carefully evaluate the agent, on the basis of
his inventory list, his past deals and record, his affinity to the developer
and importantly, if he acts more on behalf of his clients or is interested
merely in closing the deal and earning his revenue. A reference check is most
advisable through close acquaintances who might have used the agent’s services in
the past.
How do you choose a Broker?
Its easier to select one as he
has a brand, body of work and identity for evaluation.
ü A Broker
has an office for customers to reach out.
ü He has
his own or a corporate brand.
ü He is
authorized by the developers.
ü He represents
his clients.
ü He should
be interested in broking and not just profit sharing.
ü He demonstrates
transparency and doesn’t hide critical information.
Aspects to verify
A person aspiring to be a real
estate broker or an agent, must value his customers and place their interests
to nuture a life long relationship. He has to act on behalf of his clients, as
their consultant, feed them with correct, critical and timely information,
guide them with respect to the policies, regulations and practices; facilitate
their loan and insurance requirements. At the same time, he should be capable
of conducting and furnishing due diligence reports and pricing through his own
valuation. Above all, the person should be passionate about the industry and be
convinced that he is in the real estate broking, as a systematic and analytically
considered career option for life.
Do’s
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Don’ts
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Research the neighbourhood,
pay attention to location.
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Don’t by a house for its
looks alone. Don’t let yourself by overwhelmed.
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Evaluate several options
prior to finalization.
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Don’t trust everything
blindly in ads.
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Due diligence/professional
background check, especially in high value transactions.
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Don’t buy the most expensive
house on the block.
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Buy based on needs, not
wants, Understand what you are getting into.
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Don’t underestimate the
problems you may run into.
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Look for potential in the
property being purchased, especially for investment.
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Don’t ignore big problems for
a lower price.
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