BROKERS: THE GOOD,THE BAD & THE UGLY
Communication by property brokers is sometimes misleading – many a times,they over-commit and underplay critical information.NAMRATA KOHLI gives some guidelines to identify a good broker
A domestic helps agent doubles as a property dealer.One fine day,a ration shopkeeper switches jobs to become a property dealer as there is a ‘huge’ profit involved in this sector as opposed to his earlier calling.With no licensing authority in the realty sector or educational qualifications required for being a property broker in India,it has become a free-for-all in the industry,with investors,housewives,retired persons and individuals dabbling in property transactions.
The problem for a genuine home buyer becomes compounded as he is not able to tell a good broker from an incompetent one.Most buyers and sellers talk to several brokers to figure out who is better and ultimately they base their judgment on that gut feeling or references to dealers from relatives,friends or colleagues.References play a vital role in evaluating a broker and his or her abilities.Personal referrals from friends and family could be the most valuable thing – probably a must…read more
TRUSTBANQ 
It is great to see articles like these appear in the news papers, considering the fact that media is one of the biggest tool that exists today to help change the market place. We at TrustBanq are really excited about this article, and if we may, would like to add a few more things that may help the consumer understand the difference between a good broker and a bad one.
A good broker works closely with the client to understand the Short, Medium & Long Term goals of the clients and then offer solutions rather than just transactions, which also means that a brokers job is not just deal making anymore, it is much beyond that. To be able to understand the client’s goals and then help the client to achieve it through real estate investments is what a good broker must do.
The bottom line in the brokerage business is, that there will be two kinds of clients, who would consider investing into Real Estate, ones who are considering acquiring an asset for the sake of self use and the others who would want to acquire an asset for investments and growth. It is interesting to understand that both are quite different. A good broker must have the ability to analyze the needs of either, before suggesting properties to the clients.
In case of dealing with a Usage driven home buyer, it is important to understand the family size, the budgets, the disposable income, the family’s needs and a lot more before proposing a prospective home to the client. On the other hand, for a Commercial Usage driven client, it is important to understand the vision of the brand, the staff strength, the usage of the premises, the permissible usages etc. More often than not, the brokers, who are just into deal making, would ignore all these factors and would be primarily driven by Greed. That ofcourse will surely put them out of business in the long term, but for a client, it may be a problem to deal with the broker first and then to deal with the bad asset that the broker may have got the client into.
In case of dealing with an investment driven client, it is important to understand the current portfolio, the overall exposure, the short, medium & long term goals and then help the client to diversify the portfolio and mitigate risks and ultimately help the client to create a healthy mix of real estate portfolio.
So, while the factors like credibility, knowledge, reach & sincerity towards the client are just the pre requisites to be in the business, but it is important to take things to a different level by delving deeper into the clients needs and help clients acquire The Right Assets @ The Right Valuations.
By: trustbanq on September 18, 2010
at 11:35 am