Property brokers: The good, the bad & the ugly

For buyers, it is quite a task getting hold of a reliable property broker to get a good deal done. One must steer clear of brokers who open a brokerage firm like a chai shop, knowing little about land titles, and whose job is only restricted to local areas and who lack professionalism and transparency

Here are a couple of tangible and intangible parameters on which you can select or reject a broker.

1) First, the very obvious which you can get answers by sheer observation - what is the size of the broker's office, does he have facilities like phone, fax, email, a website.

Also, how much staff does he have? The broker should be accessible and have systems in place so that he or she can be contacted easily. A proper office demonstrates his or her commitment to the business over long term.

It is a significant positive if a broker has more than one office and the location of his office in a prime commercial centre exhibits his financial muscle.

2) Next come things which you can inquire of a broker: Since when has the broker been practicing? Experience is an important indicator:

a) Find out about the broker's knowledge and ability to communicate effectively. A good broker can help facilitate the best deal by virtue of his or her knowledge of the market and save you a lot of pain by helping you navigate through legal glitches. One should also know which are the areas covered under his purview and his network partners, number of partners and areas covered through partners.

b) Also ask the broker about his networks by enquiring about all the areas where he practices. A qualified broker will be able to tap a wide network of other brokers, builders and individuals in a short time. One should ask the broker if he is an authorized agent for any developer.Also ask him about the average volume of transactions per month and about the volume of properties held by him, and the percentage of repeat customers.

c) One must query the broker on legal issues , the neighbourhood of a property in question, maintenance charges (in case of apartments), water situation, parking facilities, stamp duty rates, registration charges, capital gains issues, construction techniques, and the difference between the built-up area and super built-up area.

d) Also ask the broker about home loan rates and the process of obtaining a home loan. A good broker would know about variations and pulse of the market prices within a neighbourhood or across localities . They are also familiar with the reputation of various builders and can help you avoid those who offer poor quality construction and delayed delivery.

e) Find out if the agent is a member of any local or national real estate association . Also, does the broker pay service tax? A service tax registration indicates that the broker takes his business seriously.

Currently, there is no guideline followed by brokers and there is complete lack of standardization in their processes . For standardization, the broking house can have ISI certification issued by international bodies. But this is not mandatory for broking houses in the country.

So, whats your view on this...plz share...