Real estate- India's largest unmanaged sector
A fight between professional buyers & unprofessional brokers
I am just posting my reviews regarding the condition of real estate market and Real Estate Agents in India. Everyone knows that Real estate is one of the biggest sector in India or in any other country, But the way we are managing real estate from last few years or decades, I don’t think govt is really working on the major pains of this sector. Though RERA has been imposed on Real Estate Developers and Agents as well, but still there are various points on which we have to concentrate most. For e.g.
1. Just like other consulting professions i.e. chartered accountant, Doctors, Lawyers, etc, there should be a mandatory exam to be clear for every individual who wish to proceed in this field. It should contain all the proper knowledge about real estate technical terms like Flats/apartments, super area/carpet area, High rise/low rise etc.
2. In metro cities (like Bombay, pune, Gurgaon, Noida, Hyderabad,Banglore etc) where real estate is highly emerging , I have observed more than 80% Clients (either buyer/tenant) are professionals but in the same way more than 80% brokers are unprofessional. This is the only reason, why NOBROKERS, NESTAWAY etc type start-ups are emerging so fast because it’s not about the brokerage, it’s about the professional services you are providing to the clients in a professional way.
3. There is still no standardization for the brokerage part in all over the country. Someone who is working from home is ready to take 5-10 days brokerage/0.25% commission on complete deal because he has no expenditures other than his own expenses and In the same way, Some Brokers who are maintaining their offices and staffs are not able to complete their expenses in this Brokerage ratio (profit is a next level task). This difference is just because there is no difference of work between an individual broker or a company.
4. There should be some minimum charge to start entertaining a particular (it should be refundable if client is not happy with the services or option available). I think this a major problem for all the brokers that client contact to them through various sources, explore all the regions for properties on rent/sale, and then finally take property from some dealer who is offering them a minimum brokerage or either contact seller/owners directly through various methods. In this way, we brokers spend our most of the time in just showing them options and then finally either they take same property directly/through other dealers or In case of purchase postponed their plan for next 6 to 12 months. In all the cases, we brokers get affected the most.
5. Just because of above 04 points, Real Estate Broker is considered as one of the most unaccepted profession in our India, because a person, who has no other talent or education background, can join this real estate industry very easily. He just requires some information about the available flats in the locality (whether it is a Local DHOBI, Security Guard or Kaam Wali Bai). Everyone is real estate broker these days. Even Sometimes, retired uncle's Starts this profession by remaining at home only. By the way, I am not against for any individual who wants to work as a real estate agent (either on full time or part-time basis), but I want to say that there should be some certification & minimum Education required for every Real Estate Broker.
6. Govt should make an easy & third-party process for the registration of rent agreement, minimise the stamp value and make it mandatory to use registered agreement only for any address proof. This will help them to collect large revenue from rent agreement only because presently more than 95% residential agreement are getting prepared on 10/- to 100/- stamp. This will also help in getting records of the tenant living in a particular city.
There are so many fields and points required to updated in this Field. Please share your reviews to make our real estate better for future generation.