There are some people, who feel that a real estate transaction can be carried out without the assistance of a real estate agent. Once I was also thinking like the way you are thinking now. With just one transaction, I have changed my feeling or attitude and I fully convinced that for the best deal, the service of real estate agent is inevitable.

Of course you can get deals without the support of real estate agents, but not the best deal! I am sure you will also change the mindset in a short time.

If you are thinking that you have to pay commission to a real estate agent when you buy a property through him, I can tell you that you may be wrong. It is only the seller who pays the real estate agent. As a buyer, the service of a real estate agent will not add up in your expenses. Avoiding the real estate agent simply means that you are adding up the profit of the seller. Policies of commission may vary from state (or country) to state (country) as well.

When you deal with a real estate agent you should better make sure that he is not charging you any commission from you as a buyer. You can have a dialogue or interview with the agent so that you will be clear about his terms and conditions. And also this will help you to get a primary assessment about the capabilities of the real estate agent as well.

Many real estate agents are out there who work with sellers as well as buyers. There are many real estate agents who work with either with sellers or buyers only.

If you are a potential buyer looking for real estate properties, make sure that the real estate agents you prefer have good experience in working with buyers. Good real estate agents will be there with you until the deal is closed. They will support you during the time of transactions, documentations and approvals.

You can interview the real estate agent to find out whether he is familiar with the programs like down payment assistance. If he is not well versed with such programs, you should not hire him. The agents who do not have familiarity in these types of transactions will not be having much experience as well. So you will not able to get your investment through them.

First step in selecting the best real estate agent should start by making a short list of agents to be interviewed. You can get information about the agents from friends and family members or from lenders. Generally lenders may suggest some agents and mostly they will be agents working with buyers. The recommendation of the lender will be a good choice as they know each other and must have worked earlier together.

The agents who work with the buyers only will be the best option for you, if you are a buyer. Similarly those who work with only sellers will b the best choice for you as a seller. You should discuss with the real estate agents about his fees in the first interview you have with him. This will assure you a transparent deal.

You can ask for a sample contract to see the terms and conditions. You have to make sure the agent will work in favor of you, not for the other party. You should spend much time and efforts to locate a perfect real estate agent; you should not rush in deciding the agent. Make sure that you get an agent who is not a man after money only; he should have a genuine interest in supporting you in the deals.

Content Source - Real Estate Agents Is Inevitable For The Best Deal!

The National Association of Realtors-India, an association of real estate agents, has filed a writ petition against the Haryana government in the Supreme Court against recent legislation that limits commissions.

Brokerage cap: According to a notification in February, property dealers in Haryana cannot charge more than 0.5% in commission. Ramesh Pathania / Mint

Brokerage cap: According to a notification in February, property dealers in Haryana cannot charge more than 0.5% in commission. Ramesh Pathania / Mint
The state government had passed the Haryana Regulation of Property Dealers and Consultants Bill, 2008, in September last year. In February, the state government came out with a notification, which said that real estate agents cannot charge more than 1% commission on a property deal. Apart from this, property dealers will have to obtain a licence to operate in Haryana and this can be revoked if there is any breach of terms.

“While we welcome the legislation in terms of registration and licensing, we have reservations on the cap on fees to be charged by the brokers,” said P.S.N. Rao, founder-chairman of the realtors’ association.

The estate agents are appealing to the apex court after being rebuffed by the Punjab and Haryana high court.

The legislation will erode the earnings of brokers, said Sanjay Sharma, owner of Gurgaonscoop.com, a realty website. Currently, brokers charge a minimum 1% commission from each side, he said. Commissions have halved from 2% to 1% in the past five years, so the law will help continue the trend in which the middlemen are getting squeezed out, he said.

Brokers may still be able to make up for some of the loss in fees.

“There is always a cheque and a cash component in most real estate transactions, so brokers can charge the required commission fee for the cheque component and a higher rate for the remainder,” Sharma said.

The legislation may also affect real estate consultancy firms such as Jones Lang LaSalle Meghraj, but to a limited extent.

“A large part of the legislation is meant for residential transactions,” said Anuj Puri, chairman of Jones Lang LaSalle Meghraj. “For us, residential transactions constitute less than 5% of our business; so though we will be impacted, the impact will not be large.”

News Source : Realty agents’ group moves SC against brokerage limit

Diwali is a time for festive offers. But, real estate and housing loans aren’t consumer goods and the advertised festive offers are usually just a marketing gimmick.

There is very little similarity between buying a domestic items like a kettle, on which one can get genuine deals, and getting a big ticket item like a house or a housing loan. Here we tell you why you should not fall into the trap of a so-called festive offers on real estate and related loans.

Why the marketing spin?

Marketers recognize that during festive seasons, whether its Diwali in India or Christmas in the western world, consumers are looking for good deals.

In India, Diwali is also seen as an auspicious time to make financial decisions. So, marketers play on this pre-existing momentum in the minds of consumers looking to make a house purchase decision during the festive season.

However, the deals are usually no different than what you would get before Diwali, or just after the festival season.

News Source : Festive real estate and loan offers

Residential real estate prices are going up. In the last three months, prices of affordable apartments have appreciated by around 10% across the country.

“With improvement in the sentiment in the economy, transactions in the affordable range of residential real estate have gone up. This has made developers to increase prices by 5% to 10% in the last three months,” said Anshuman Magazine, MD of real estate consultancy firm CB Richard Ellis, South Asia.

The developers had cut prices by around 30% in first two quarters of calendar 2009 to revive the demand of residential units, which plummeted to a low due to the global financial crisis. Magazine said the price cut led to some recovery in demand. Enthused by the partial recovery, he said, the developers, who had sold a substantial portion of their projects at hugely discounted prices, decided to increase them marginally in the next phase.

According to an IIFL report, in Mumbai, prices are up 25%-40% from the bottom in early 2009, while in NCR, the corresponding figure is 15-20%. ‘‘Constrained supply and a revival in demand drove up prices in Mumbai, and NCR,” the report said.

In Mumbai, the prices of apartment in Metropolis, being developed by HDIL appreciated by 38% since March to Rs 10,500 per sq. ft. Similarly, the project, Planet Godrej, has become 20% costlier to Rs 25,000 per sq ft in the last six months. In NCR also, many developers like DLF, Unitech, Jaypee Greens, Mahagun and Amrapali among others, have increased prices by around 10% from the launch prices in March-June. In the premium segment also, there is revival in demand, said Vibhor Gupta, senior official of Jaypee Greens. However, the prices have not witnessed any escalation in the premium segment. Similar trend has been noticed in cities like Bangalore, Pune and Chennai.

“The current trend of price escalation can not be sustained as it will affect the demand,” said Aditi Vijayakar, ED of Cushman and Wakefiled, adding, as the demand has revived following interest rate cuts by banks, many developers have announced projects in the affordable range. This will increase the supply and will put pressure on the price rise.

At the same time, another consultant said the financial condition of the developers has not improved to a level that they can hold a project for long. They need cash flow to service the debt, which they have taken to buy lands. The source said the money from other sources like dilution of equity is still not easily available. This has forced developers to depend on the sales proceeds to service debt.

News Source - Residential realty prices moving up