Property brokers in trouble: Real estate portals play the game
Property selling, was once regarded as one of the most money-making businesses, however, with the advent of real estate portals, it seems to have fallen off the grid. According to market sources, collapsing home sales and the skyrocketing competition from real estate portals have pushed a number of property brokers out of business, while compelling few to agree to wafer-thin margins.
Property brokers now experience a shrunk market, as a result brokerage activities has almost come to a stand still. With individual builders and sellers looking for direct sales or the services of certain real estate portals which are ready to offer free deals, the number of applications for broking licenses has taken a dip significantly.
Property markets-scenario
Realty portals conduct intense research and propose algorithms to duplicate a map-based facility, which could track down the physical location of the house. Since such portals enable consumers to get a brief insight of the property without any physical presence, it has made itself a major hit among home buyers.
With the rise of real estate portals, number of broking license registrations has scaled down. In the last 2 years, it has sunk down by 10% in Bangalore, testifying that the internet portals pose stiff competition to all the traditional brokers.
In Mumbai, developers are putting to use direct marketing initiatives namely text messages, e-mails and pre-launches to approach their clients, in order to cut down the 3% commission which property dealers are entitled to.
Few builders, who still avail brokerage facilities, have trimmed down the charges significantly. This, together with unfavorable real estate market condition, has taken a toll on the brokers and such gloom is evident in Mumbai, Delhi and Kolkata.
No brokerage-direct sales
Economic slowdown stands out as one the key factors why developers now lay emphasis on direct sales and cutting down of brokerage fees.To add to it, referral clients also pose significant threat to the entire broking community.
Builders, now pull the strings via their present client and thus put an end to the role of brokers and agents. According to some property consultants, any reference of a potential client will fetch the buyer somewhat around Rs 50000 discount, contributing significantly towards the decline of property brokers by about 50%.
Brokers, who are still in business, confirm that the number of property transactions did not go down, however, the price band did cave-in by not less than 50%. Further reports on this issue corroborate that few brokers have also tried their hand in some other businesses, since earning profit by property selling seemed to be a pie in the sky.
How realty portals turn the knob
Realty portals have made matters much worse for property brokers. In few cases, builders come on strong on the online sites and social media platform to promote their properties on a wider scale among the foreign investors and boost direct sales.
In addition to it, real estate portals meet the online enquires of the potential customers on an ASAP basis. This online market trend contributes to 15-20% of the total sales volume in the 50 lakh segment. In addition to it, project publicity and promotion serves as the key for the successfully functioning of the online real estate portals.
