Real estate agents or brokers play a crucial role in finalising many successful property deals. The Indian real estate market is versatile and yet, competitive, especially for real estate agents. To be successful in this market, it is important for all property brokers to understand consumer behavior and what kind of marketing innovation will help them to get more leads, to keep one’s business afloat.
How to become a real estate agent?
Here’s how to start real estate broker business in India.
Research and explore
It is essential that you gain adequate knowledge of the profession before starting a career as a real estate broker. You can speak to seasoned professionals in the industry and get valuable knowledge.
Get the necessary licenses and registration
Know about all the criteria that needs to be met before starting a career in the real estate broker business. This includes registering your company, obtaining real estate agent license, getting Professional Tax Registration (PTR), GST registration, etc. Professional tax is the tax levied on all types of trades and professions in India. The state tax department issues a PTR to the agent by levying a fee that varies from state to state. It is must to get the registration certificate renewed annually.
As per the Real Estate (Regulation and Development) Act 2016, all real estate agents must get registration with the state-level Real Estate Regulatory Authority and obtain the RERA registration number/ license. The license is valid for five years. The requirements pertaining to licensing and registration in India may vary from state to state.
RERA Guidelines on Registration of Real Estate Agents
Further, the Real Estate (Regulation and Development Act), 2016 (RERA) was introduced with the objective of regulating the real estate sector in India and make it more organised and ensuring transparency. Real estate agent must get registered under RERA.
RERA Act aims to make property purchase easier for the home buyers and regulate real estate transactions that were earlier heavily in favour of the builders. It ensures fair transactions between property sellers and the buyers through licensed and responsible agents.
Real estate agents are required to comply with the various guidelines such as:
- Not facilitating the buying or selling of unregistered properties.
- Adhere to the various provisions of the act
- Not involve in unfair commercial practices such as making a false and misleading statements, orally or in writing, or supporting advertisement of services that may be unlikely to be delivered.
- Facilitating the possession of various documents and information to which a homebuyer is entitled when booking a home, land, or building
What are the disadvantages of non-registration as per RERA?
Without RERA registration, a real estate agent will not be allowed to operate. If one operates the business without RERA registration, a penalty of Rs 10,000 per day is levied in case of any defaults. Also, the penalty price may be increased up to 5% of the price of the property being sold.
In case of non-registration under RERA, the real estate agent will not be allowed to engage in the homes for sale in calgary or any real estate business. There will be a penalty of up to 5% in case of non-compliance with the RERA orders. Moreover, one year of imprisonment is applicable in case of indulgence in any unfair trade practice.
RERA Registration: Documents required
A real estate broker or agent must submit the following documents when applying for RERA registration:
- A duly filled application form
- PAN card copy
- Name, contact information, photographs, and address of the real estate agent and the directors or partners
- Copy of address proof, email id, and phone number of the area from where the agent will operate the business
- Recent three years’ Income Tax Returns
- Name, type of enterprise (for example, company, societies, proprietorship, partnership, etc.), and registered address of the enterprise
- For real estate agency, particulars of the agency must be provided including the MoA (Memorandum of Association), byelaws, and AoA (Articles of Association)
- Registration details in any other state, if applicable
- Information related to any criminal/civil cases pending against the agent or the company
- Information about real estate projects, promoters, and advertisers with whom the agent has association with for business in the past five years
- Copies of acknowledgment receipts, letterheads, and rubber stamp images
How to become a real estate agent: Eligibility Criteria
Individuals with appropriate knowledge of the real estate industry can become real estate agents. There is no specified qualification to pursue a career in this field but having good networking and negotiating can be an advantage. The age of the individual should be 18 years or above, as per the applicable laws in the state. He or she must have successfully cleared real estate license examination and complete the pre-license education.
Who is a real estate agent?
Real estate agents are licensed professionals who work for a real estate brokerage firm or individuals and represent a property buyer or a seller to facilitate real estate transactions. With the booming real estate market in India, the industry offers plenty of opportunities for those looking to pursue a career as a real estate agent or property dealer. Besides possessing some essential skills such as exceptional negotiation and communication skills, they also have specialised license and experience.
Mentioned below are the various roles and responsibilities of a real estate agent:
- Appointments and coordinating for meetings
- Prepare budgets and develop marketing plans and advertising campaigns
- Update databases of clients and property listings
- Reply to emails, messages, and phone calls
- Research open listings and look for properties
- Conduct comparative analysis of the property market
- Manage company websites and social media profiles
- Create and distribute promotional materials
How to become successful real estate agent?
Maintain connections with past clients
You do not need to spend a lot on marketing efforts, if you have satisfied customers to give you referrals. Get their testimonials published on your website and social media accounts. You can also ask satisfied clients, if they would be willing to allow your potential clients to talk to them, for background verification. Creating goodwill in the market is crucial, to become a successful real estate agent.
Don’t always focus on selling
Act as a consultant, rather than a sales agent. This will help you in understanding your client’s requirements and what is the rationale behind their choices. If you have shortlisted some options from them, tell them what makes it valuable for them, instead of convincing them that it is the perfect choice. If you focus too much on selling, rather than helping, the deal may not reach a conclusion, as there won’t be enough trust between you and your prospective client. A successful agent has to be a consultant first and a salesperson second.
Be transparent with your buyer
If you are not sure about the builder’s track record, be clear about this with your buyer. You do not want them to get stuck in a project that is bound to get delayed. If you know that there are legal hassles in the property, make sure your buyer has enough information about it. If your buyer is adamant on buying a property from a seller who only has a power of attorney or in an area where the colony has not yet been regularized, it is your duty to tell them about the risks associated with the move.
Cultivate an online presence
The first thing your prospective client will do after getting your reference, is search about you and your business online. You would want to use this opportunity to establish yourself as a trusted name in the industry. Start with a basic website or a Google Business listing. You can boost your online presence gradually. Make sure your website has a call-to-action button, which can directly lead your visitor to a contact form or your WhatsApp number, whichever is quicker for you to respond to their query. A call-back or personalised response to your prospective lead within a few hours, can improve your chances of getting their business by up to 70%.
Avoid making assumptions
Avoid making assumptions and rely only on facts, when it comes to documentation, legalities and property valuation. Do not make assumptions on the direction your business will grow. Do not rely solely on referral business or expect income to flow in because you have a website running. For success, ensure that you get yourself registered with the state Real Estate Regulatory Authority and network as much as you can.
Networking is the key
Some clients may be difficult to deal with, or you might not have something that they like. Instead of turning down these clients, you can ask your fellow agents, if they have properties matching the client’s criteria. This way, you would be able to help your peers and your prospective customers, at the same time. You can talk about sharing the commission, as, after all, something will be better than nothing, if the deal reaches the final stage.
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