Real Estate Industry: Broker And No Broker Phenomena | Real Estate Blogs
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By: Randhir Kumar

09-02-2017 15:15:46

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Real Estate Industry: Broker and No-Broker Phenomena

As we know that every industry requires good professionals to run it properly. Sometimes, non-professionals also play good role with them to run the industry in organized manner. Similarly, same condition applies with real estate industry also. Because, this industry is regulated by its professionals but business of this industry is dependent over the non-professionals like:-customer/seekers and many more. Generally, Real Estate industry involves professionals like: - builders/engineers/architects/brokers/agent/IT-experts and many more, whereas non-professional involves like:-landlords/property owners/customers/seekers.

Some professionals like: - engineers/architects/builders are essential for constructing it whereas professionals like: - agents/brokers/IT-experts are essential for promoting it and last one is customer/seeker/buyers who comes under non- professional category, who give the actual identity of this industry. All these professionals and non-professionals contribute to the solid foundation of real estate industry in their own field. Furthermore, we know that every sector including Real Estate is affected by marketing trend also.  Marketing experts are also needed for making reputation of “Real Estate industry” in the market, so that business growth rate could be enhanced.

          Many activities are done in this industry, Out of which selling and buying are the main activities which are performed between sellers and buyers. When this activity is performed directly, this process is also called “no broker” dealings. Sometimes in selling-buying deals, a broker/agent is involved as a mediator in between sellers and buyers which is called “mediator oriented” dealings.

Broker/agent role in Real Estate industry: - Yes, it is true; broker/agent has their importance in some cases. When a seeker wants to buy home/flats/house, but have no information regarding the property and its owner. So, buyer visits brokers’/agents’ office/”web portal" to get assistance to buy their house/flat easily. In this entire process Broker not only deals like mediator to fix the meeting but also prepare the required documents and assist both parties and also helps in negotiating the price because of his strong dealing with the property owner. For this entire process broker/agent charges brokerage from the buyer and the seller. This process can be a little expensive but convenience of both parties is also a matter to be taken care of.

Property dealing without broker/agent: - In Such deals, owners and seekers meet directly with each other, Thereafter, they deal by themselves. This is another way of dealing. In this case seekers obtain information regarding real estate property from several media like: - newspaper advertisements, real estate web portals, and by local community information. Although this is a cheaper way to deal in between owners and buyers but there can be certain hurdles in such deals when both the parties do not have proper knowledge of the market and legislations. Hurdles can be mostly on price negotiation and the process of registration or documentation, which in case of broker oriented dealings do not arise.

Now a day, there are so many property portals which are dealing in real estate industry. They all have their own style of showcasing. Some property portals give mixed opportunity to everyone. On other hand there are few who works in no broker phenomena. When we call no-broker phenomena, it means they are removing the mediator like brokers/agents and performing their tasks by their own. for this service they charge something which is little less than the brokerage charge, somehow if we monitor closely, the no-broker phenomena is actually not no-broker phenomena.  

 Taking into consideration the whole facts that in property deals every aspect is important either with brokerage or without brokerage. Each has their own pros and cons. The need is to analyze your convenience. If you wish to deal conveniently, you either deal with the help of a mediator or you gather all possible information and deal directly with owner.

Here comes the role of actual property portals whose prime objective is to only provide information about the property. If this information is mixed, it can be confusing for an end user. I came across a property portal which have very good feature, which is, separate information platform for professional advertised property and owner’s posted property. The name of that portal is http://propertypivot.com. Please do refer it once and give your opinion.

All the best.

About Blogger (Randhir Kumar )

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This is Randhir Kumar belongs to patna. as far as may educational qualification is concerned, i have done MCA from D.A.V college faridabad and my working experiance for the software development about 2 years, for the project trainer 2 years, for the blogging 1.5 years. furthermore, i keep interest in several fields like playing chess, cricket, badminton and others frolic activity.....