Last year, my friend, 29, a flight dispatch manager with IndiGo Airlines, decided to buy an apartment. He was reluctant to approach the usual neighbourhood brokers, given their dubious reputation. So he searched online for an alternative and found www.xyz.com, one of a new breed of property agents who insist they are committed to clean, transparent deals. The company found him just the place he was looking for: a two-bedroom flat in a housing complex called Ridge Residency in Noida.He says "I was not sure whether to buy my flat in Faridabad or in Noida, but www. xyz.com advised me correctly," . "I am glad I chose Noida, as my property's price has already risen by 25 per cent."
Tales of shifty brokers shortchanging home buyers, promising the moon but delivering far less, preferring to deal extensively in cash rather than cheques, often working in league with dodgy developers, are legion. There are around 200,000 brokers in the country, and most of them inspire anything but trust. "One can become a property agent without any registration or certification.
"There is no accountability to either developer or customer.".....
Leading the pack are Investors Clinic and Better Option Propmart (BOP), which notched up revenues of Rs 148 crore and Rs 150 crore, respectively in 2011/12. The bulk of their earnings came from residential properties.
The former was started by brothers Sunny and Honey Katyal from Moradabad, Uttar Pradesh, in late 2006, when they sensed a big opportunity in the flurry of construction activity that had begun in the National Capital Region (NCR). "There was an opportunity to remove unethical practices and institutionalise the industry," says Nishant Singhal, Director, Strategy, Investors Clinic.
The former was started by brothers Sunny and Honey Katyal from Moradabad, Uttar Pradesh, in late 2006, when they sensed a big opportunity in the flurry of construction activity that had begun in the National Capital Region (NCR). "There was an opportunity to remove unethical practices and institutionalise the industry," says Nishant Singhal, Director, Strategy, Investors Clinic.
It was the same spur for Amit Mavi who set up BOP in early 2007. "Residential properties promise much more to investors, 15 to 18 per cent, while in commercial ones, the margin is seven to eight per cent," says Sumit Ghosh, Vice President, Marketing, BOP.
So what do these new-age brokers do differently? For one, they all prefer clean, cheque only deals. For another they have all set up portals to make the property buyer's search experience easier. The portals list every property the company is selling, along with its specifications.
These brokers also appraise developers carefully before starting to sell their properties.
"Do numerous meetings with the builders, get feedback from our sales people and even speak to the media for more details,"
Most of the salespersons traditional brokers employ are not on their payroll but are paid a commission for every property they sell. They are thus solely concerned with netting customers, often exaggerating the virtues of their properties; once the customer has paid up, they are rarely available. The sales force at most of the new broking firms, however, are all full-time employees, and thus much more accountable.
