Try to assess whether the broker has good knowledge of the prices prevailing in the area you are interested in, and is able to provide the pros and cons of various projects.
Purchasing a house comes with a fair share of uncertainties. However, these uncertainties get significantly reduced when you have a competent, professional, and credible broker to assist you.
Check credentials
A few elements bolster a broker's credibility. He should have enrolled with his state's Real Estate Regulatory Authority (RERA).
Find out if the broker is part of an association, such as the National Association of Realtors (NAR).
"If a broker is part of an association like ours, and he indulges in any wrongdoing, you can report him to the association," says Shivakumar C R, president, NAR.
Also, check if the broker possesses a professional certification. Maharashtra RERA has empanelled five institutes to teach a 20-hour course on real estate to practising professionals, which is followed by a test. The Indian Institute of Real Estate run by NAR is one of the institutes that offers this course," says Shivakumar.
While the above filters are not foolproof, they will guide you towards a person who has invested time and effort in equipping himself for the job and is present for the long haul.
Experience counts
When it comes to experience, more is better.
"An experienced broker would have witnessed and handheld his clients through both bull and bear phases," says Pradeep Mishra, founder, Homents.
In his view, a broker should ideally possess at least 10 years of experience.
Expertise in local market
When you narrate your requirements to your broker, he should be able to suggest a number of options.
"The inventory the broker possesses is very important," says Sajid, vice president-residential sales and marketing, Silverline Realty.
Try to assess whether the broker has good knowledge of the prices prevailing in the area you are interested in, and is able to provide the pros and cons of various projects.
"The location of one project might be good, but its developer's track record may not be sound. The broker should be able to guide you on these counts," says Mishra.
Only by speaking to several brokers and assessing the depth of their knowledge can a customer make the right choice, adds Mishra.
The developer should also possess knowledge of the area's master plan, and the government's infrastructure-related plans for it.
Engage with a recommended individual
Don't get taken in by people who advertise a lot. Go by testimonials.
"Ask for the number of the broker's past clients and speak to at least three or four," says Mishra.
Check with friends, family, and colleagues. If several of them recommend a particular broker, your chances of finding a sound professional increase.
Carry out an extensive online search. Also check their social media accounts.
Many clients nowadays share their experiences with a particular broker on social media. Google Reviews is another useful source.
Guidance on valuation
The broker should be able to provide his client guidance on a property's valuation.
Says Sajid: "Here, experience counts. The broker should have a good knowledge of the rates at which recent transactions took place. He should also be able to factor in other variables such as the quality of interiors or maintenance charges to arrive at the right valuation."
Don't overpay
The brokerage rate can vary from one region to another.
According to Mishra, who operates in the National Capital Region, the buyer and the seller both pay 1 per cent plus GST in the secondary market.
Bengaluru-based Sajid informs that the seller pays 2 per cent plus GST while the buyer pays 1 per cent plus GST.
In case of rentals, the brokerage fee is one month's rental fee plus GST.
Mishra suggests that the client should clarify right at the start whether he will be required to pay any additional charges (say, documentation-related).
Finally, the broker should have knowledge of the documentation involved in a real estate transaction.
"He should understand the intricacies of the agreement to sell, sale deed, etc., the key clauses therein, and should be able to explain their implications to his client," says Vaibhav Suri, partner, Luthra and Luthra Law Offices India.
Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this article to influence the opinion or behaviour of the investors/recipients.
Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.
Feature Presentation: Aslam Hunani/Rediff.com
