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If you are planning to build a career in real estate but are confused about the growth prospects and your future, do not worry. Real estate agent from the US, Ben Caballero, was the first Guinness World Record holder for real estate sales. However, before that, he became a builder at only 18 years of age. Learning the ropes well, he turned into a broker by age 21. In a single year, Caballero has the record of selling 5,793 units worth $2,270,911,643. We look at the reasons why you can consider a real estate business and how to establish yourselves.
Why consider a real estate business?
Real estate transactions take place even in a slow market
Caballero says that even in a tight market, there is no dearth of business, as inventory always exists. You can experiment with the type of real estate you are dealing with. Citing an example, he says that perhaps selling a new property may be easier than selling a resale property. Developers usually prefer keeping transactions of new properties simple and quick, making it easier for buyers and brokers. In either case, there are benefits and your success depends on how well you are able to explain this to your buyers.
It pays to be patient in the real estate business
Most brokers and aspiring brokers are weighed down by the thought that their income is dependent on the developer or the buyer and unlike salaried people, they cannot expect timely payments. Caballero says that brokers must be prepared to be patient, because most developers are scrupulous when it comes to paying the brokers. The only delay comes along when the closing or the deal takes a while.
Fieldwork and research are crucial for success
No broker gets to the top without research. Communication is crucial, because home buyers are waiting to get all the information from you and it is important that you research about the properties you are pitching. Spend some time at the builder’s sample flats, sales offices, etc. Get to know the principles of the builder, his business ethics, his representatives, as well as other local players and their calibre, says Caballero. Every developer has their own vision when it comes to business but buyers look at quality over bragging. Help them distinguish between the irrelevant and quality.
Build fruitful associations with all stakeholders
Make sure that you are dealing with builders that have a good track record and reputation. Unlike consumer goods, real estate is a costly transaction and none of your customers would like to be misled. Once you associate with a developer with a compromised past, chances are your business will also be affected. Unless you have good reason to take the risk, keep it safe for your customers, as well as for yourself. Be careful to understand the terms and conditions of the contract and sale agreement. Your buyer should be able to trust you.
A broker is a partner for the developer and the customer
You can always take your client to the builder’s sales office and ask for the salespersons to pitch the project or property to your client. Remember that once you research and associate with the developer, you are their partner and you can always use their help. Your job is to step in and provide direction and make it easier for both parties to go ahead with the sale.
If you are passionate about real estate business, give it a try. Make a plan, keep yourself informed of regulatory changes and build a marketing strategy and an online presence.
Do brokers charge fees from buyers or sellers?
Real estate brokers provide services to both, sellers and home buyers or tenants and therefore, they may charge 1%-2% of the transaction cost as a service fee.
Can I find properties without brokers on Housing.com?
Yes, there are plenty of options listed on Housing.com, where you can get in touch with the owner directly.
In India, do brokers have to follow any regulatory rules?
Yes, the Real Estate Regulatory Authority specific to the state holds all stakeholders in the property business (developers, agents and buyers) as liable to follow the laws established by the state regulatory authority.