How to select your real estate broker?

Narasimha Jayakumar99acres.comAs the real estate market moves towards achieving transparency and reduced fraudulent cases, it is imperative to organise and enhance the broker community. In the individual capacity, our aim should be to select a credible broker who can facilitate a smooth transaction between two parties, without any glitches. More importantly, finalise a real estate broker who believes in building relationships and offers the best customer service, both before and after transaction. Steer clear from brokers who are driven by the need to earn commission, constantly chasing you to close a certain deal. Make sure that the house you settle for is in your best interest, without being influenced by the incessant selling tricks of the broker.For most of the consumers, buying a home is once-in-a-lifetime decision. Various factors such as location, budget, size of the property and requirement have to be considered before finalising the house. However, there have been cases when prospective buyers/tenants have changed their requirements, influenced by brokers. So, one must be careful to avoid making decisions based purely on broker feedback. Unlike many other countries, there is no degree for a real estate agent and the segment continues to remain unorganized. Most consumers take the agent at face value, leaving no legitimate alternative in case a problem crops up. So, how can you ensure the credibility of a broker? Here are some important points to keep in mind: 1. Personal contacts: Friends and family can provide the best references for a broker.  A reliable agent will typically have multiple developers, clients and owners in his/her ambit. Therefore, such a broker or consultant can guide you with a plethora of options in the domain you are looking. References from neighbours and colleagues who have previously invested in property and had a good experience with a broker can also be relied upon. 2.  Market know-how: A broker should be well aware of the market dynamics and have sound local knowledge about builder track record, timely projects, locational advantages and proximity to nearby transport facilities. You can also check with organisations such as The Confederation of Real Estate Brokers Association of India (CREBAI) to find a reliable real estate agent in your area.3. Broker license/educational background: Since the real estate agencies in India are not regulated, it is difficult to gauge the credibility of a broker. Anyone can pose in the garb of a real estate agent to accumulate commission/brokerage. In current times, a layman can distinguish between qualified and unqualified agents as there are registered bodies such as Association of Certified Realtors of India (ACRI), National Association of Realtors (NAR) and or other related agencies. In a recent announcement, it was revealed that RICS and NAR will join hands to conduct management development programs (MDP) for real estate brokers with more than three years’ experience. Such initiatives will go a long way in organising the broker community. 4. Clarify brokerage fee: Avoid any confusion regarding brokerage amount since realtors’ tend to take advantage of buyers. Across most Indian cities, the average brokerage fee is about two percent of the transaction amount if the property is above Rs 50 lakh and one percent for properties below Rs 50 lakh. You must select brokers charging fee within the specified limits (refer the local body for clarification). The ideal route would be to purchase the property directly from the buyer as you will not have to pay any commission to a broker.5. Decode realty jargons: Real estate can be an intimidating sector for a first-time property buyer. With terms such as loading, carpet area, super built-up area, encumbrance, occupation certificate, it is important that the broker you are consulting clarifies the meaning of these words. It will simplify your home search, legal paperwork and documentation. The dealer should also be able to facilitate the sale/lease agreement, home loan paperwork and stamp duty procedure on your behalf, explaining the nuances of the clauses in the written in the contract. 6. Service: Today’s broker community is primarily driven by closing transactions and moving to the next deal. However, you should go by the reputation of a broker known for offering good customer service as well as building healthy client relationships, both, before and after the transaction. This will reinstate your faith in the broker community as well as help the consultant execute more deals in the future. Apart from the above mentioned qualities in a broker, you must conduct your own research and field study to finalise the buying decision. There are several ways to find out the clear title ship of the property, counter check the credibility of the builder’s past record and understand the financing mechanism. Online interactive forums can guide you to comprehend the pre-requisites before concluding a transaction and inform you about the approval processes required.