Investing in real estate is tricky. While there are huge upsides to investing in real estate, there are also many risks one has to take. Choosing a right agent should be your primary concern. A good agent will get you the best deal and ensure a smooth hassle-free transaction. With the huge upward trend of property related cases in court, one has to ensure safety in all aspects. When buying real estate in Delhi, Mumbai or any metropolitan city, one has to be additionally careful, as the transaction amount here is huge.
If this is your first tryst with the real estate industry, and don’t know how to choose a broker, read on. This guide will give you a clear understanding of the different types of real estate agents and the precautions you have to take as a buyer.
When buying a property who is the best person to go through?
The answer to this question primarily depends on the kind of property you are buying and the person selling you the property. If the realtor is selling it you, after checking for his credibility, it is advisable to buy through him. Because a realtor would know about the legalities that you have to ensure are in place, before parting with your money.
If it’s an individual seller, it’s best to hire a lawyer for legal expertise to prevent major financial blunders.
Where can one find a broker?
First of all, shortlist a broker from the locality you are planning to invest in. Listings are available on the internet, as well as newspapers and phone books. Also ask your family and friends for recommendations.
I am confused with the various titles, what is the difference between them?
The designations and titles of various people involved in the real estate market can get really confusing.
Real Estate agent: A real estate agent is the one who has a license. This can be a license as a broker or a salesman. To earn a license you need to pass a test; these requirements for the test vary from state to state. The Real Estate Agent is also called a Real Estate Salesperson.
Broker: A broker will have to be more educated than an agent and needs to pass an exam to get a license, which will allow them to practice as a broker. Brokers are more experienced and are authorized own as well as run their own company.
Associate Broker: An associate has broker’s license, but instead of working as an Independent Broker, works for another broker.
If an agent is guiding you during your property purchase, it’s very likely that he is under the management of a broker and is answerable to him. If there are any glitches in your transaction, a broker will take over.
How to make the choice?
Before choosing a broker make sure he is credible. Check if he has a valid license. Don’t be afraid to ask him your questions and doubts. Look out for the red flags. If your family members or friends have purchased through the broker before, ask them about their experience. Talk to his other recent clients and ask for their experience. If you feel unsure about an agent, hire someone else. Do not hesitate as the stakes are very high.
What about their fees?
If it’s a property transaction, then the broker charges up 2 per cent of the property value. If it’s a rental or a lease, then you have to pay one month’s rent amount or 8 per cent of the transaction value. In Mumbai for a house rental transaction, brokers are paid one month’s rent amount from both the landlord as well as the tenant.