The decision to acquire a real estate may seem simple; however, having the right advice from a real estate professional can be the difference between a good or bad investment. It is important to choose the right real estate consultant and, in order to do so, buyers and sellers must first learn what to look for. Pawel Kentaro Grendys, an expert in Latin American real estate, provides insight into this process and why it’s important.
A real estate broker is someone who acts as an agent for both the buyer and seller of the property. In most cases, the seller retains the broker and works with the buyer. The broker works to get the seller to solicit potential buyers. The seller then evaluates the proposed offers and determines if an offer is best for them. The broker must be licensed by a state regulatory agency.
The broker must have the ability to agree on the conditions in the price and be able to indicate that it meets developmental and code specifications. He or she will also know if there are limitations of levels or types of property, or if it is functional for commerce or only housing.
The broker can guide both parties on how the market moves, how much supply and demand there is and what people are looking for. Adds Grendys, “One of the most important reasons to have a broker today is the little time consumers have and the time it takes to move from one point to another. A broker is empowered to answer all the questions involved in negotiating.”
Thus, the productive person continues in his work doing what he knows how to do and produce to be able to buy these assets, delegating to the broker to search, find and make contacts. It includes knowing the perspective of developments that exist in the area and the surplus value generated by buying in that sector. Other aspects to know are current and future access to shops and student centers, and, for the buyer, if there is an easement for water, electricity and transportation services.
A good real estate broker protects both sides, and conducts an investigation of who the client is, where he comes from, where he buys and other key points. He or she relies on the banking system to be able to access credits, what are the procedures, make payment projections, expenses, etc.
An added value delivered by the property broker is to define a market price. Explains Grendys, “The owner usually believes that his home is worth more than it really costs, and many times the interested party offers prices well below the market. The broker’s job is to establish the middle ground between these two extremes and come up with a good deal for all parties.”
To achieve a satisfactory agreement, it is essential that someone is there to mediate between buyer and seller to get good exit terms in which both parties are satisfied. This includes knowing when to leave the property, in what conditions it is in, who pays what expenses, etc. This will achieve a more fluid, fast and easy-to-carry negotiation since, as there is a neutral third party, it is possible to rely on the information.
During the process, banks (when there is mortgage financing) ask for various backgrounds and papers that are key to have ready. A natural person can perfectly do it, but it is much easier and faster if someone who knows the operation of banks handles the process.
The buying and selling process is not just about searching and selecting the ideal property. There is a whole way after choosing, and it is on this path, where a professional broker makes the difference.