Challenges Faced by Real Estate Brokers
Real estate brokers encounter several challenges in their industry, particularly given the prevalence of digital platforms for marketing. This article highlights the key obstacles faced by real estate brokers. From sourcing clients to retaining them and navigating cutthroat competition, brokers must be ready to accept the challenges.
1. Sourcing Clients:
With the rise of digital platforms, sourcing clients has become increasingly challenging for real estate brokers. Potential clients now have numerous options to choose from, and many may be enticed to take the direct route in an attempt to save on brokerage fees. However, it is important for clients to recognize that working with a reputable broker offers valuable expertise and ensures a fair deal.
2. Holding on to Clients:
Although brokers may provide excellent service during a transaction, there is no guarantee that clients will return for future needs. Property transactions are often infrequent and need-based, creating the potential for brokers to be forgotten. For a vast majority of clients the time gap in needing real estate services is often quite big , resulting in loss of connect with the broker concerned.
3. Dealing with Cutthroat Competition:
The real estate brokerage industry has seen an influx of unqualified individuals masquerading as brokers, diluting the market. Unfortunately, these inexperienced individuals may convince clients to work with them to save on brokerage fees, putting clients at risk and potentially costing more in the long run. Until clients realize the worth of a professional broker, these people will continue to thrive at the cost of unsuspecting individuals.
4. No security of getting paid, after the deal is successfully done.
As a broker with over 40 years of experience in this industry, there have been umpteen instances of not getting paid for the services provided, the list includes top corporates, well known builders, Nri’s, individual clients. There is no protection of any nature from all the agencies who are actually supposed to be doing so. All protection is only on paper, realities on the ground are a different story.
5. Limited control:
Once the two parties have met and exchanged numbers etc, most brokers are ignored until some dispute or disagreement crops up, thereafter the broker is the fall guy, for no fault of his, the experienced ones can try and sort things out but the inexperienced ones face unexpected mental trauma.
Conclusion
Yes, there is money in this business but there are several challenges too, if you feel you can handle these challenges and are knowledgeable about the subject, welcome to the club.
Please feel free to post your comments and views on the above.
See you next week, with a new topic.