Your broker will see you now !!

 Your broker will see you now !!

The role of a real estate broker has transformed from information provider to service provider.  Brokers today help their clients by articulating, interpreting, evaluating and simplifying data enabling them to make informed choices.

Mr and Mrs Mukherjee wanted to make the transition from tenant to homeowner last year as their family was expanding.  But since both of them are corporate professionals with their work entailing extensive travel, they decided to hire a broker.  “The broker became a one-point contact between us and the potential sellers, and he ensured that we got the best options on the table.  Moreover, we were looking for homes in a certain belt and our broker had hands-on knowledge about all the localities on that route, which further helped us filter out options.  Overall, we were very happy with our experience because we were able to move into our dream abode three months after we got a broker onboard,” mentions the happy couple.
While Mukherjee’s had a fruitful encounter, are real estate brokers still relevant in the age of digitalisation and Proptech? Let’s understand.

Who is a real estate broker?

A real estate broker is an individual who operates as a middleman between real estate buyers and sellers.  However, today their role has evolved from being simply information providers to service providers.

How should a buyer zero in on a real estate broker?

If you’re thinking of buying a house partner with a real estate broker who knows the local market at the back of their hand, boasts pretty solid credentials and has a history of wrapping up deals in a positive way.  “Homebuyers should only opt for reputed brokerage firms with adequate corporate governance practices.  Besides, the broker should be able to communicate effectively and clearly and be very responsive throughout the search and transaction process.  Moreover, RERA has made it mandatory for real estate brokers to register themselves with the authority and comply with its rules and regulations.  This has increased accountability and helped eliminate unscrupulous agents from the market.  The Act also mandates brokers to provide complete and accurate information about properties, including the status of approvals and construction updates.  RERA has set up a grievance redressal mechanism for buyers to seek resource in case of disputes with brokers or developers, and vice versa. 

What is the role of a real estate broker?

Brokers act as a common thread while conducting any real estate transaction between buyers and sellers and offer prospective homebuyers a variety of services.  “Brokers need to help their clients by articulating, interpreting, evaluating, and simplifying data so that they can make informed choices.  The clients in return then can harness broker expertise and knowledge of their local market and resources.  However, on a cautious note, one must note that a broker may not always have your best interest at heart but a huge commission-based broker fee on the deal value instead.  Therefore, prioritise your real estate needs and then go ahead and sign on the dotted line,” elaborates Anshuman Magazine, chairman and CEO - India, South-East Asia, Middle-East Africa , CBRE.

One of the primary responsibilities of a real estate broker is to assist customers in finding homes that fit their requirements and preferences, taking into account location, size, and price range.  “A broker must schedule site visits so that customers can evaluate the property and identify problems or deficiencies first-hand.  They must ensure that the buyer gets the best deal and must negotiate the price of the property with the seller.  Brokers must also help with the legal and financial aspects of buying a property, including obtaining home loans, examining and signing documents, setting up payments, and managing the transfer of ownership,” adds Singh.

While the internet is full of information, it’s the real estate broker’s expertise that makes the difference between mediocrity and extraordinary, a major reason why customers today are still relying on brokers.  “Real estate brokers have a wealth of industry knowledge and experience, which can prove-in valuable for the customers.  They can offer advice on how to buy or sell a property, as well as on pricing, marketing, and timing of a purchase or sale.  Besides, brokers have access to a huge variety of listings, including homes that are not yet on the market.  Clients may benefit from this while they search for the ideal home or buyer.  Real estate transactions require a significant amount of paperwork and legal formalities as well, which brokers handle smoothly for their clients.  Finally, the process of purchasing or selling real estate can be a time-intensive undertaking, and the services of a broker can save clients’ time, mentions Singh.

One must also note that a real estate broker’s commission is a percentage of the sale price, normally between two and three percent of the value of the property.

Are real estate brokers still relevant in today’s market?

Technology has changed the way we shop for homes today and it’s not a secret that homebuyers, especially millennials, are leveraging the digital platform to the maximum to find their dream home.  Moreover, because buyers today are better informed, they are also realistic about their budget and are more attuned to the prevalent rate in the market.  However, a successful real estate deal is not cracked by simply uploading a listing on the website.  Here, the guidance and value of a real estate broker come into the picture.

“We all need to understand and accept that while homebuyers are embracing technology, most still require the guidance of a real estate broker to help save them time, keep them organised, and successfully take them through the closing process to get the best deal.  Site visits, documentation, negotiations, and finalising the right price, are those aspects of the business, which cannot be conducted online, and you need a real estate broker to seal the deal.  Having said that, we as a community also need to evolve and adopt newer practices, leverage the right technologies and be more effective.  A real estate broker today needs to adopt a professional approach, upskill themselves and most importantly, justify the hefty commission they are being paid,” says Hussain K, a Mumbai-Based real estate broker.