The real estate market in India has seen set back in past few years. Due to the implementation of RERA (Real Estate Regulatory Authority) 2016 in each state to increase transparency in real estate & to protect the home buyer as well as to boost the market. Besides this demonetization in 2016 has also affected housing demand.
The industry has just started to boom but the global pandemic of Coronavirus has pushed back the realty market. But the government of India, Developers as well as brokers are paying their part to help revive the industry.
To increase liquidity in the market RBI has lowered the repo rate to 4% from August 6, 2020, low repo rate means banks can provide loans to people at a low rate of interest. Under Section 80EEA, the government has expanded the tax deduction cap for first-time home purchasers. Developers are also offering various discounts & schemes to people to increase the housing demand.
While agents operate in transactions just as facilitators and do not have a say on different facets of an arrangement, they are able to enact meaningful improvements. In the middle of the Coronavirus pandemic’s effect on the economy, we at SBP Group looked at some of the ways in which brokers will positively impact and help the overall business expansion:
RERA Registration: As mentioned above that RERA has been set up by the government to facilitate an exchange for both customer & seller. In the present time, it is very difficult to just trust anyone with your hard-earned money. Under this regulation, in order to operate and run their business, builders and brokers have to register themselves under the State Real Estate Regulatory Authorities (RERA).
When someone wants to buy a house or property, they usually approach the nearby real estate agent or broker, as they have proper knowledge about the surrounding area & are easier to communicate with. But these local agents may or may not have registered themselves with RERA. If they become more trustworthy by registering themselves under the RERA, these individual brokers have the ability to expand their businesses in several ways.
However, for the customers who look for brokers online to purchase property, having RERA ID helps these clients in having trust with you more easily.
Increasing Reach: It is the right time for property brokers to increase their reach, as people have now realized the importance of the safety of home, they are willing to buy the property. Brokers can increase their area of operation as well as reach. With the use of networking & the internet, it is very easy to reach more people who need your help with the purchase of a property. You can work on your own or can work with brokerage firms & help potential customers with Home finance and legal aid, in addition to providing support for location assessments, automated payment systems, etc.
If they were to extend their practices by linking up with banks and legal consultants, the possibilities of profits materializing would improve in several respects. Needless to conclude, the extended network will continue to assist them throughout their careers.
Target NRI Customer: Due to the pandemic many NRIs are returning to India and are interested in buying housing property. It is a safe investment for them to reside in or for the future as well & with a reduction in interest rates resulting in best home loan rates, it is a very beneficial time for NRIs to invest in Indian realty. Brokers can persuade them & help them in purchasing the property & help push up housing demand in the country.
Communicating with them properly can help you sealing the deal of property sale, as they are not familiar with the rules of property purchase in India for NRIs you can enlighten them. Leaving a good impression on the client with efficient communication can help you in expanding your reach & boosting your business.
Support Customers Understand the Market: Because of the complicated legalities and tax rules, first-time buyers and sellers face several difficulties when conducting the transaction. You can allow buyers and sellers to gain a deeper view of the business, the legal and financial implications of the trade, and the complicated jargon involved in the process as brokers are likely to have significant expertise in these topics.
This support work can be regarded as a brand-building activity that, apart from gaining the confidence of the customer, will help you expand your business or services in the long term.
Reduction on Commission: However not every broker can afford to provide a discount on the commission earned on sales, it is just a suggestion to provide some reduction on commission so that the sales can continue. It can encourage the sellers to sell the property if they have to pay fewer charges to the broker.
Digital Methods to Increase Sales: Brokers can make social media accounts or be part of a website to increase their business. In times like these where actual visits on the property can be risky, brokers can use technology & digital methods such as Virtual tour to guide the buyer about the house without any kind of risk.
Addressing a video-conference meeting organized by the National Real Estate Development Council (NAREDCO) in June 2020 Minister of Commerce and Industry Piyush Goyal said that ‘You can choose to be stuck with your inventory, then default with the banks, or you can choose to sell it even if you have bought it at high prices and move forward’. Considering this statement, many developers & real estate agents have offered schemes & discounts to attract more customers in the market.
We hope that with all these suggestions SBP Group could help you. It is expected that in the upcoming time the demand for housing property especially ready-to-move property will increase, but we need to put extra efforts to boost the Indian Realty market.