Change Agents: Property Brokers Now Have A Chance To Do An Image Makeover
When the government decided to include real estate agents in the Central Advisory Council that is part of the proposed Real Estate Regulatory Bill, it took a step that might change their image and role in the sector for good. Recognition of real estate brokers may also go a long way to bring in sectoral reforms.
The council is set up by the government to understand the issues impacting the sector. Real estate in India has been facing a slowdown for the past two years as developers struggle with huge unsold inventory. Apart from real estate brokers, the council will have representatives from other sector stakeholders, i.e. home buyers, developers, architects and legal experts, etc.
The Bill has yet to get a nod from Parliament to become a law.
Necessary evil?
The property brokers' community is better known for its breach of promises, lack of integrity and fair practices and the worst of all, cartelisation. While all this portrays them in a bad light, the fact that they are a strong link in the real estate chain is undeniable.
Real estate brokers have direct access to the changing needs of home buyers and are first hand sources of buyer behaviour. Their inputs are essential to bring in the much-needed reforms in the sector.
Change they need
With official recognition coming in, it might be a good time for brokers to clean up their act. While an entry into the advisory council would allow them to organise official groups to represent their view, it will also help them build a better reputation among builders and home buyers.
The proposed Real Estate Bill calls for many changes in the broking community. A Real Estate Regulatory Authority will set up a code of conduct for agents. The regulator will also make it mandatory for intermediaries to maintain books and records that will be audited. They would also have to make all their transactions official with documents that can come up for perusal, if necessary. The authority will also take up any issues and complaints against brokers regarding against for mis-selling. This move will help cut down unfair trade practices in the sector.
The proposed Bill would also make it necessary to pass a certificate course to become a property broker, a common practice in the insurance sector.
Not getting obsolete
It might be the right time for real estate brokers to organise, innovate and transform, especially when huge competition is coming from e-commerce portals. Many websites now act as the link between builders and home buyers, taking away business from agents and brokers.
Home buyers now conduct a major part of their home search online. This includes going through properties in an area, helped by intelligent portals that have more to offer in terms of numbers and features.
However, this gives property brokers an opportunity to improve. In many developed countries such as the US, property brokering is a white-collar professionals. The Bill gives brokers in India an opportunity to turn things in their favour.
(Katya Naidu has been working as a business journalist for the last nine years, and has covered beats across banking, pharma, healthcare, telecom, technology, power, infrastructure, shipping and commodities.)