Would 21st century be end of Real Estate Brokerage

Real Estate Brokerage has always been a high growth potential industry and with the changing trends in this sector, it has seen a flow of trends that have restructured the sector. Since the structure of the industry is changing, the time has come when the Real Estate professionals should not even ignore these changing trends. The sector is professionalizing and we need to aim at not only providing better services to the customer but also ensure that we work towards upgrading the status that a “Real Estate Broker” has in the society.

Now one big question that most of us face is “Has Internet replaced the role of the Real Estate brokers and agents? With so much of information about properties already available on the property portals and mobile friendly applications claiming to enable a direct interaction between the seller and the buyer; we may get an impression that there is no need of a Broker/ Agent during the home buying or selling process. What we need to understand is that Real Estate is a field business. Getting of all the information online about the property does not end the process; rather it is just an initiator. Site visits, documentation, negotiations, right pricing etc are the offline side of the business which cannot be completed without the guidance of a Real Estate expert. Technology is just a tool that ultimately helps both the brokers and the end users but it is a fact that it cannot replace the Real Estate Brokers/Consultants. Successfully completing a transaction involves much more than just uploading a listing on a property portal.

If you look 10 years back at the way Real Estate was conducted, a Broker was the keeper of all the information about a particular property. There was no source other than a Broker/Agent to get information about a property and they were minting a lot of money just because of this information dissemination. But now the game has changed. Information starting from the dimensions of the house to nearest utilities to the contact number of the owner is just a click away. There is so much more available on various social media platforms like Facebook groups, communities, What’s app groups etc. To survive in 21^st century, a Real Estate Consultant has to learn about the skills that a machine cannot do for a customer. There is a paradigm shift because of the technology and the way business is done and it has impacted the brokerage industry to a very large extent. All the smart Real Estate professionals have already taken the leap by updating themselves with the tools and techniques that will help them offer something more than what is already available online. With Real Estate moving to a more organized and regulated stage, I feel that this is the time that players like us will be the change leaders in the brokerage industry.

To survive in today’s Real Estate market, a Real Estate professional needs to evolve constantly in terms of market knowledge, network, professionalism, marketing, etc to attract new customers. We strongly feel that we need to adopt some practices that will be a value addition to the end user.

Some of them can be:

VALUE THE TIME OF YOUR CUSTOMER: Every end user already comes with a good amount of research done about his buying decision. A Real Estate Consultant should be well equipped with the knowledge about the latest inventory in that locality along with extra relevant information that can act as a catalyst in making the final decision. This value for their time will also build up the trust factor and make customers for life. Moreover, the present day customer looks for an access to maximum number of properties under the same roof as it makes the process more efficient, manageable and more over saves a lot of time that gets wasted in going from broker to broker to find the right property. A Real Estate professional should be able to provide the customer with this value addition to service all kinds of Real Estate needs.

MAKE MAXIMUM OUT OF TECHNOLOGY: Technology has tools that not only help in increasing your productivity but also help in doing much more than that. With set systems and procedures you can not only maintain but also market your inventory with just a few clicks. Though technology cannot replace the human touch that is required in the business, but it can surely help you in building the much required equilibrium between the online and the offline state of the business.     

LET YOUR PROFESSIONALISM SPEAK FOR YOU: With the changing demographics of the home buyers; it’s time for Real Estate Consultants to be more professional in their approach. Your own personality, your office’s look, your way of dealing with them can do wonders. These are some very basic things which are acting as game changers in this industry. Every customer wants to deal with a professional and not an unprofessional part-timer opportunist.  

UP SKILL YOURSELF: To be able to position yourself in today’s market, you need to constantly up skill yourself to provide a better service to the end user. In addition to knowing your local market in and out; one should also know about the documentation and legalities involved to actually act as a Consultant to the buyer. Instead to being a mediator, the need of the hour is to be able to walk through the entire process and present a blend of the market expertise and cutting edge technology.

We would like to conclude by saying that the way we do this business has changed, but at the end of the day, Real Estate is still a people’s business. Portals can provide unlimited information, technology can provide a national and a global connect but all this cannot match to the human skills of negotiating and understanding what a customer actually wants. So though our industry is experiencing a phenomenal change since the start of the 21^st century which has led to some major transformations, it will only be of value addition to the brokers and not their replacement.  

Tips for real estate investors

Investing in Real Estate is one of the first options that comes to everyone’s mind when we thing of a long –term and a safe investment especially in a country like India. But since the sector is so diversified, investing in it without a long – term vision can be a little tricky. That is why my first suggestion to everyone looking to invest in Real Estate is that it should never be an instant decision that you make. It is something that will directly impact your financial future, so set a right way to being this journey. The good part of this business is that depending on your financial capabilities and your experience, it has a variety of opportunities you can invest in. So first set your budget, explore the available options, evaluate their pros and cons, compare the possibilities and then make a smart cum safe investment that will make you grow financially

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For the first time investors, it is very critical that one understands the fundamentals of Real Estate. It is one of the biggest business opportunities for an individual as it can open up multiple avenues for making more money. With it having a capacity to multiply your wealth, a veteran realtor who carries good experience and understanding of all the things that you need to succeed can be very helpful in making the right decision. He can give you an expert advice and get the right things done for you. In addition to it, you as an investor should also invest in increasing your own Real Estate knowledge so that you can proceed smoothly. As new investors, with the first investment that we make, we start thinking that it is going to make us rich there and then; but we need to understand that Real Estate demands a lot of patience. The market scenario keeps on changing, so you need to proceed very carefully.

Real Estate already is very unorganized and has multiple angles. There is always a right and the wrong way of doing this business. As beginners we tend to makes a lot’s of mistakes as first of all we are sometimes not clear of what we are getting into and secondly we sometimes avoid following the systems. It is very appealing but it demands a lot investment in terms of time to plan and strategize your investment decision.

In Real Estate, one simple fundamental that will always reap benefits is “Take Risk, Take Action”. After analyzing and understanding all the possibilities and risks involved in this business, the important part is that ‘Are you has to be prepared to take that kind of risk’. We always want to add Read Estate to our investments portfolio but it requires a lot of initial funding and a regular cash inflow to protect you from getting stuck at a later stage. It is just about that risk taking appetite and a strategic planning that will help you in accomplishing success.

In a nutshell, we feel that first of all an investor should identify his investment horizon, whether he wants to invest for a short- term or long- term and the kind of Real Estate they would like to invest in. A comparative analysis of the market trend/rates versus the opportunities available can help them figure out what will bring the best ROI. Last but not the least, before anything one should understand the plans of the government for that particular market as that is one of the most crucial factors to decide the success of the investment.

The future of affordable housing in India

The concept of Affordable housing is very generic and has several implied meanings in different contexts. Affordable Housing is interlinked to a number of factors like the income level, the kind of comfort, facilities, standard of living and amenities be offered in that price range. In addition to all these factors, another parameter that plays a vital role while the sale of affordable housing is the target customer for the same. For a low level income category, affordable housing will be a dwelling that ranges between 7 – 12 lakhs whereas the middle income category can look up to affording a flat within a bracket of 25 – 30 lakhs. Thus first the demand and the sale of such houses has to be determined by keeping all the above factors in mind and then only we will be able to take some positive actions to make it a future in India. 

The fact is that affordable housing is the much needed concept that needs to be in full swing to bring back the realty sector on track. The market is flooded with the high – end luxury housing but the segment of affordable housing has a gigantic shortage in some states, particularly in big cities. With the very high land and the construction cost followed by the approvals from around 35-40 departments required to pass a project, the developers who focus on affordable housing are facing hurdles in achieving the long – standing dream of affordable housing.  

We at RE/MAX India believe that due to the sudden fall in the demand in 20013-14, where the market had become very competitive and the private developers were just concentrating on the mid-income and high-end housing, shifting to affordable housing segment has provided an appropriate option to diversify risks to the developers. Also, due to lack of land parcel within the city limits has pushed the developers to aggregate land at suburban location where a high-end project might not be successful, since these land parcels have lower cost of acquisition. 

We also believe that a strong mission is required between central, state government and big cities. Work needs to begin on this said mission which has four distinct components/wings - slum redevelopment; affordable housing through interest subvention; rental housing for migrants; housing for urban destitute and homeless. In addition to this, slum redevelopment will require experts on PPP and finance which needs to be integrated in the finance division that needs to be part of mission.

Further, all the states need to sign MOU agreeing for mandatory conditions like development of slums through PPP mode , granting additional FSI/TDR for slums and affordable housing projects ,single window clearance for building and lay out ,permission on pre-approved lay out and building design for EWS/LIG housing  et al. These steps are likely to give the much required additional push towards this area. A lot of studies have shown that there is momentous demand for affordable homes but supply is limited, even as developers begin to implement business models around this.

Affordable housing is expected not only to improve the basic quality of life but also make a good economic sense. Affordable housing is attracting a lot of buyers and investors and the realty majors who previously focused only on mid-income and high-end housing projects are seriously looking at building up their presence in affordable housing as well.

The customer service philosophy

Real Estate is a people’s business and a Real Estate purchase is one of the costliest purchase a person makes in his/her lifetime. In real estate, a good customer service can really help to set you apart as a realtor. Even if we think generally, we all love to receive good service wherever we go and in fact we appreciate good service so much that we all like to show it, talk about it and promote it when we receive it. Buying, selling, leasing of Real Estate are amongst the most hectic events in life and no matter how many times have you done that, it comes out as a different situation every time. Every buyer and seller comes with a unique set of challenges and it is very important for a realtor to understand them and deal with them. The philosophy to deal with it is very simple. It is always about the clients and what your client needs from you. A realtor needs to figure out the best ways to service those needs and provide the best services that will help to develop a long term relationship with your clients. Any approach that you follow should be customer centric and should follow the need based approach. To do that your knowledge not only about Real Estate but about anything starting from an update on the market to advice on the impact documentation on your client’s home value will be helpful.  Identify the best practices, create systems and processes for everything, train and up-skill yourself and make use of the latest tools and technology to give the best in what you are doing. We need to understand that in Real Estate your starting point is your client and his/her need.  

In our Real Estate career we have seen a lot of successful agents and it is surprising that they don’t do the business in the same manner. But at the same time, they have one thing in common and it’s that their clients love them. They know their business very well and they are skilled in doing what they do and thus they give their customers a great experience. In RE/MAX, we feel so proud when we read some lovely client testimonials that our associates receive because of the great service that they provide them. This is when we realized that the only way to set you apart from the competition is CUSTOMER SERVICE. Not only you build a strong bond with them but also you make them your customers for lifetime. As a matter of fact, researches show that while there are only 15-20% of chances to sell to a new prospect, there is 60-70% probability to sell to your existing customers. A good transactional service brings you more clients, through repeat business, referrals, testimonials, reputation both online and through word-of-mouth.  Real Estate has a great potential and customer service goes far beyond simply understanding what the client needs. Starting from a simple thing like a response time to something as important as documentation, customer service includes everything that a Real Estate consultant needs to take care in a home buying/selling process.   

We are in an age where the customer gives more focus on to value and also rewards the great service that you provide them. As veterans in Real Estate we need educate our associates on how to give great service. As a Real Estate consultant you have many roles to play. Whenever you meet a potential seller or a buyer it is your knowledge and skills that help you win your clients to work with you exclusively. A good customer service is when your client feels the trust and confidence in you. Real Estate industry runs on a long term relationship and the customer service skills is one of the key differentiating factor that helps to build your brands image and make sales more effective

Smart cities: An Opportunity for real estate sector

In line with several other initiatives in making India take a major leap in the race of development at a global level, the building of Smart Cities is definitely a rational decision taken by the Indian government towards its execution.  As a matter of fact, India is the seventh largest country by area and as per the current statistics, we have also become one of the fastest growing economies & are looked up as the newly Industrialised country in the world. There is surely a huge potential for the development of Smart Cities but the question is on how will this be strategized and executed.  

There are a number of questions that arise with reference to the execution of this plan as the residents of the cities in India have already been facing a number of problems due to low maintenance and poor planning. The smart cities will not only make life simpler and much more comfortable to its residents but also will help us in efficiently utilizing our resources and give a next-level infrastructure to our future generations. With the usage of information and communication technologies to develop more organized public services, it is also a big opportunity for the Real Estate sector as it is a very good investment for the investors with a long-term vision.

One factor behind the need for smart cities is the international call for action in response to changes in the global and urban environments. There are problems like resource depletion, urban issues, and other difficulties brought about by climate change and increases in the size and concentration of population. Smart cities intended to boost long-term economic growth and global competitiveness over the next 10 years and with a significant share of investments coming from foreign governments and private sector inflows, the dream will definitely become a reality.

The potential economic impact from the development of India's smart cities will act as a significant catalyst for economic growth through a number of drivers, including increased foreign direct investment (FDI), accelerated development of Real Estate Investment Trusts (REITs), increased competitiveness and job creation. Not only will investment into sectors like roads, airports and smart cities create a better and a next level infrastructure, but it will also generate private equity investment opportunities into the core sectors. Though it a very challenging concept especially in India because of the existing socio-economic conditions but an effective leadership and an optimum utilization of the resources by the players in each sector involved in this concept can deliver the smart infrastructure. All individuals at every level starting from the investors to the executors have to be actively involved in the multiple operational and the infrastructural developments.

Urbanization in India has significant implications for the future development of the country and the coming generations will exert tremendous pressure on urban infrastructure and services. It is, therefore, imperative that we find innovative solutions for the urban challenges of growth and sustainability. Additionally, green growth strategies can build environmentally sustainable cities.

Though the concept of smart cities is relatively new in India and it is an ambitious plan to upgrade urban India but together we are well on the path to creating them.The government has planned to set up the concept of smart cities in Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Maharashtra, Manipur, Odisha, Punjab, Rajasthan, Sikkim, Tamil Nadu, Pondicherry, Terengganu, UP, Uttrakhand and West Bengal. We at RE/MAX India are positive about the whole concept and are sure that with such concepts, the projected development of India by 2020 will be achieved.

Skills for a Realtor in avoiding common home buying mistakes

Buying a home is one of the major financial transactions that an individual makes in his/her lifetime and it should be a very pleasant experience for them. At one time when the buyer is very excited about the new home he is buying; at the same time it can become a very complicated process. A buyer encounters a lot of questions and it is very important that all these questions are addressed to help him in making a more confident decision. This is where the skills and the experience of a realtor come to play. Right from assistance in helping them defining their objective of the purchase to deciding the amount that should be spent in the whole process, a good realtor should dedicate his time and energy in streamlining all these process for the buyer.

What looks simple actually involves a lot of research, preparation and a lot of pre – planning. With the Internet acting as a one-stop shop for all the queries and information that the buyer wants, it is a fact that it cannot replace the experience and the trustworthiness that a Realtor carries with himself. In India, Real Estate is more of a local game and in such markets relying on a realtor who is an expert of that local market will not only protect you from falling into various pitfalls but will also save a lot of money, time and various other resources that get involved in the process. As RE/MAX, to ensure that our Associates have all this knowledge, we train them on various aspects and developments happening in their local markets so that they are able to best serve their clients.

As new home buyers, we get easily influenced and even mislead sometimes and thus end up making mistakes that are not reversible. On the other hand, a realtor will ensure that he does every possible negotiation that will be of best financial interests to you and help you to buy the right property at the right price. The home buying process simply doesn’t end when you find your dream home. In fact the process just starts after that. The legal aspects and the documentation involved have to be dealt very carefully and by an expert as they can have major long term implications. A realtor with a knowledge and update on the latest and ever-changing rules and regulations in Real Estate can simplify the entire process for you.

The kind of research and analysis that is done by a realtor serves as a guiding factor to the buyers during this important journey.  Right from understanding the requirements of the buyers to doing all the comparative analysis to final down your dream home, a realtor’s skills prevent you from making mistakes that will end up wasting your hard earned money. We am very much supportive of this beautiful quote by Warren Buffett, “Price is what you pay. Value is what you get”. As a Realtor, it is our duty to make the Real Estate transactions successful and of value to your investment. 

Is Real Estate your Smartest Investment?

“Land is a scarce commodity; available in a finite amount and they ain’t making any more of it”. Thinking of this fact, we are sure that all of us realize that land is one resource that has no substitute and is one of the basic human needs along with roti and kapda. Real estate is one of the sure investments whose value always appreciates in long term. It is a general and very true saying that “You don’t wait to buy Real Estate; buy Real Estate and wait”.

If you are looking at stable gains for your money, it is time that you start looking at Real Estate as an investment. As per a lot of researches, real estate has given at least returns between 15- 20% per annum in the last decade. In good developing locations, after a period of 5 years, your real estate investment starts giving you return in terms of appreciation anywhere between 10-20 % per annum depending on the kind of investment you have done. While areas like Navi Mumbai and Gurgaon have seen an appreciation in prices; cities like Bangalore, Chennai have seen a good return on property. Tier 2 and Tier 3 cities are growing at a faster pace and will be coming up with good real estate prices and returns. The developing areas always give a good return on investment and thus the investors can also explore these options to make a smart investment. Even when prices fall and cash is scarce, a lot of schemes are available in real estate for investors which reap them a handsome profit when economy recovers. A lot of Real Estate investments just don’t fetch you appreciation but also give you monthly returns like rentals and lease income. There are a lot of other factors as well that make Real Estate as a king of investments and let explore why:

1.        Basic law of demand and supply: As and when the population will grow, the demand for Real Estate consequently increases. With the increase in the demand of real estate, the rents increase and thus result in higher prices of the land. In fact, whenever the economies grow and expand; it has a positive impact on the Real Estate growth. There is a reason why Real Estate is considered as a part of the bigger investment portfolio. It is a resource that has several qualities that enhance the returns.   

2.       A stable, non-volatile and a reliable income stream: If you think long –term, most of the real estate returns come from rental income which are surely less volatile than capital returns. Owning a home is actually a keystone for wealth as a result of its financial affluence and emotional security. Not only is it a reliable income source while you are yourself earning but also offers the comfort of steady income post employment. It is saying that “Landlords get rich in their sleep” and the statement stands true looking at the kind of financial security one gets from Real Estate investments.

3.       Scope of appreciation: Real Estate is one commodity that always appreciates in long –term. Numerous experts in real estate would agree to the fact that over a time period of ten years, real estate is one investment that has seen highest scale of appreciation in comparison to any other investment. Real estate is like a roller coaster ride. Every market sees a slump in the economy, but land prices have always been amongst the fastest to recover and gain momentum. 

4.       Risk platter is less: Owing a physical asset always gives you much more mental satisfaction over any financial asset like mutual funds/stocks.  Moreover, with Real Estate the risk platter is less. The value of your money is preserved and increases by investing in right asset class for long periods of time. Moreover, Real estate is one of the investments that allow leverage. Even if you pay only 20-30% of the entire cost of a property; you can easily control the income coming from the property along with the tag of the ownership of that property. It is a safe bet that you can play with minimum risk involved.

Thus Real Estate not only is one of the everlasting securities that you can have but is also an asset that is ever increasing in value. In real estate, the investment has to be long term, with a timeframe between 4-7 years to expect king size returns on your investment. To make the best of it, you as an investor also need to do some hard work, a lot of research and make a smart decision to make best out of it. Do not forget that every day when you wake up, it is your property only that is producing a safe and a stable income.