In this article I am going to talk about tips and tricks to start a real estate broking business from crash. This article will be useful for those who want to become a Realtor or Property Consultant and all the real estate agents and builders and developers.
General Guidelines on Real Estate Broking:
It is always recommended to take a feedback from your customer after closure. You can take a feedback from your customer on a simple piece of paper or using Google forms as well. Always invest some percentage of profit towards your office setup. Like you can buy scanner, printer, laptop etc. Invest 5-10% in self education and office setup. Adapt to changing business culture and keep yourself updated about the Industry news and government regulations. Give same service to the Lower Income Group, Medium Income Group and Higher Income Group clients. Maintain your Goodwill and Character in your social network. Always assist and educate your customers. Try to keep away from Negative thoughts and people in your life. Try to become first expert in your field by practicing and doing same thing again and again until you get to know the things better. Initially try to create a base of customers with good background so that in future same customers can help you create good references and build your brand by word of mouth marketing.
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Real Estate Broking:
Real Estate Broking business is all about Data of Buyers and Sellers and Inventories. You can build your data by using various sources – Like Classifieds ads in Newspaper, Social Media, Online Property portals, what’s app – Facebook – Telegram Groups.
Select an area and divide that area into 10-12 pockets. After you do research and mapping in these pockets you can do data segregation using Microsoft Excel. First 10-20 days collect data of Primary and Secondary inventories from your pockets and do site visits.
Make a questionnaire for collecting details of the properties while doing site visits. You can include various points for collecting property details from sellers like;
- Location of the Property:
- Apartment or Society:
- of Floors:
- of flats per floor:
- Total number of flats:
- of wings:
- Lift with Backup:
- Swimming pool:
- Vastu Compliant:
- Neighborhood: Hospital, School, Bank, Grocery, Bus -Auto Stand, Railway station, Airport etc.
- Configuration: 1 BHK / 2BHK / 3BHK / 4BHK / 5BHK
- Flat/Unit Area: Carpet and Built Up
- No of Toilet:
- Dimensions of Room with area in Sq. Ft.: Living Room / Kitchen / Bedroom / WC /Balcony
- Furnished / Unfurnished:
- Age of Building:
- Mortgage: Current EMI and total outstanding
- Completion Date:
- Documents of Property:
- Loan / Finance from which Bank:
- Expected cost:
- Project Approval Authority:
Ex. CIDCO | MMRDA | CORPORATION | MUNCIPLE COUCIL | GRAMPANCHAYAT etc.
In case your type of Property is a Plot or Land you can include below points in questionnaire;
- Area of Plot: In SQ. MT. | SQ.FT | Acre | Var
- FSI: (Floor Space Index)
- 7/12 Extract:
- Sale Deed:
- Plot Dimensions:
- Road Width:
- Plot Cutting:
- Zone: Residential | Green | Industrial Etc.
- Planning Authority:
Now that you have collected the information from your questionnaire, select 10-15 best properties from each pocket and start marketing on only such properties with focus. You should at least have 100 to 150 shadow properties in your basket.
Initially beginners can visit and study and work on all types of properties like Flats, Apartments, Society, Township, Lands, NA Plots, Offices, Commercial Shops, Malls, Warehouse, and Industrial Plots etc.
Initially work hard for at least two years on all types of properties. Then after analysis start working or selling properties as per your first two years of experience. Be a specialist in your area. Never forget real estate business is all about patience.
It is advisable to crack at least 2-3 deals earn some revenue so that you survive at least for 6 months before renting an office space for your business. After that you can think of setting up of your office so that you will be more confident without any risk in your mind.
Keep reading property documents to understand the terms in details and get familiar with it.
Those who are not providing the documents never sell or advertise such properties. You should always insist for property documents.
While selling a plot always consult with an Architect to understand the commercial viability of the plot. Insist and convince the customer for a meeting with your Architect in order to understand the yield of his / her plot and he / she will happily pay or would not mind paying some fees to the architect. As plot yield is changing day by day it is advisable to consult with an architect first before buying or selling any plot. You should keep improving your maturity at every level of business.
Document Compliance: Documents involved in property due diligence
Example: Latest 7/12 Extract Copy, Last 30 years Search report, Latest NA Tax Receipts, Completion Certificates, Conveyance Deed, Sale Deed, Electricity Bill, Latest Paid Property Tax Receipts etc.
If the seller doesn’t have documents ask him to collect from the builder / developer.
Do property due diligence along with marketing and simultaneously start doing site visits as well.
Take Photographs of all properties. It is always good to meet the customer first at his home and give a presentation so that you can understand the client’s family and decision maker. It is called as client profiling or understanding your customer avatar. Once you get familiar with customer requirements and need you can pitch them the properties accordingly. Once you have done the presentation then further you can fix the site visit date during your presentation and arrange the keys from the seller or owner.
In case of Rental deals you can assist your clients without keeping any business greed in minds. Like assisting them for LPG Cylinder Transfer Process, School admission, Bed, Key maker, Maid, Vegetable market, you can take them to a 1 Day tour to your city and visit favorite places.
You can request the Flat owner to arrange facilities in his flat like Door bell, Curtains Rod, Kitchen Trolley, Fan, Tube light, Cloth holder etc.
In case of resale deal after doing compliance always ask expectation from buyer to the seller. You can also do due diligence of property documents from an Advocate. It is good to make a tie up with a known and reputed CA, Advocate and Architect in your area. Once the file is Okayed by the advocate you can proceed for the paper notice in at least two local newspapers. If the property is mortgaged mention details of the lender in paper notice. Instead of carrying physical documents it’s better to get it scanned and store in a pen drive or mobile as per your convenience.
It is always good to check the document file from buyers advocate. In case buyer cannot arrange his advocate the agent can arrange his own advocate to check the document file.
After Paper notice is published you can collect the initial token from the buyer.
For keeping better transparency between you (as a mediator) and buyer and seller you can create a what’s – app group and add both buyers and seller in one group and keep all the updates about the work you are carrying out daily starting from collecting the documents till registration and post it in that what’s – app group. It will help the parties understand the kind of hard work you are putting and also show your sincerity among them.
Arrange all the documents from buyer and seller before going to registration office like PAN Card, Aadhar Card, POA, Advocate Fees and any other charges etc.
Carry all the forms at registration day along with you like;
- MSEB Transfer Form
- Property Tax Transfer Form
- 7/12 Transfer Form
- Water Tax Transfer Form
- CT Survey Transfer Form
I hope this article help all the real estate professional and those who want to become a realtor. If you like my article please share with your friends and give comments for any suggestions.
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