Professional property brokers also function as “Investment Managers” who provide profit or loss analysis when you want to invest in property.
Property brokers or agents are indispensable in buying, selling, or leasing property transactions, such as houses, apartments, villas, shop houses, and others. The rise of property agent office brands makes consumers have to be careful in choosing a professional broker and according to their needs.
Property brokers were well known in Indonesia before the 1970s. At that time, the “amener” or property contractorsespecially house contractors—build houses and sold them directly to the public, and some of these contractors had used the services of property agents, apart from advertising in newspapers. Property agents at that time were better known as “brokers” or “brokers”.
In its development, some property agents have joined formal companies, either with national labels or in cooperation with foreign companies through a franchise system. The way it works began to be laid out professionally. They are now more often referred to as property brokers.
On November 17, 1992, an organization was formed to accommodate property brokers named the Indonesian Real Estate Brokers Association (AREBI). The existence of AREBI is actually beneficial for many parties, especially the community, developers, property owners (vendors), the government, and fellow members.
Types of Brokers
Currently, many property brokers are under the auspices of a company/without a company/individual/group with the names of franchise brokers, national brokers, traditional brokers, established brokers, specialist brokers, to property marketing clubs.
Broadly speaking, there are three types of brokers with the following characteristics:
1. Franchise Company Broker
Comes from a foreign company with a franchise system (franchise).
Having a head office in Jakarta as its representative.
Having branch offices (outlets) that are quite a lot and spread out.
The shape and size of the office must be of a certain standard.
Excellent management system.
Have an international reputation and network.
Well-trained marketing staff (marketing associate or property consultant).
Clear and standard commission rates (marketing fees).
Names such as ERA, LJ Hooker, Century 21, and Ray White fall into this category.
2. National/Local Company Brokers
Generally come from ex-franchise, ex-developer or individual.
Franchise system, but some are not.
The shape and size of the office does not have a certain standard.
Good management system.
Network (networking) owned is limited.
Commission rates (marketing fees) are generally lower than franchise companies.
3. Traditional Broker
Generally come from individuals with operating areas in certain areas only.
Most do not have an office.
Management system is relatively non-existent.
There are professional ways of working but mostly unprofessional.
Commission rates (marketing fees) are uncertain, subject to negotiation.
Property Broker Functions
The function of a property broker for service users should include three things, namely:
1. Helping the community in terms of buying and selling property (problem solving) at a reasonable price and in the most efficient time possible so as to satisfy both parties (seller, buyer and tenant).
2. Speed up the transaction process or as a catalyst. The systems and networks that property agents have, should be able to speed up all procedures and administration.
3. Serves as an “Investment Manager” who can provide an analysis of profits and losses if there are people who want to invest in property.
Characteristics of a Professional Broker (property agent)
So that you don’t choose the wrong property broker, here are some characteristics of a professional broker:
Knowing the prices and trends of properties for sale in the area concerned. This means that the agent has mastered the area, both weaknesses and advantages of investing in the area concerned.
Professional property brokers must be able to direct consumers to choose houses and land according to their abilities and needs.
Act as an advisor in the sale and purchase of land and buildings, not as an intermediary.
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Plus-Minus Using Agent Services
As a “liaison” between buyers, sellers or house tenants, the presence of a property agent is really needed. What’s more, currently property agents have grown into a separate profession along with the proliferation of new property brokerage companies. This shows that its existence has been recognized and can be accounted for.
Broadly speaking, the advantages of using the services of a property agent for the community, especially the owner or seller, are:
Get accurate and sure service.
Obtain objective information (conditions, house prices, etc.)
Speed up the transaction process (buy-sell or lease).
Eliminate potential time and effort in the sales process.
Reducing unnecessary expenses.
However, to use the services of an agent, you must set aside 2.5% – 3.5% of the selling value for a commission (marketing fee) for the broker if the transaction has been carried out. A clear time limit in the marketing process must also be discussed thoroughly, so as not to be stuck in the sale/purchase of a house.
Therefore, to avoid unwanted things, look for or choose a professional property agent with the following characteristics:
Have a representative office or workplace.
The terms and conditions offered are clear and written, including the amount of the marketing fee.
The marketing associates (associate marketing) are known to be reliable.
The business network is adequate.
Simplify the process of buying a house.
Help find homes according to location, taste and budget.
Help provide information about the environment, educational facilities, and characteristics of areas and locations of interest.
Assist in estimating house prices.
Help prepare the documents needed in the transaction, as well as find solutions and companions for property transaction problems that arise.
Help introduce notaries and PPAT officials.
Provide advice and assistance to new home owners, including moving goods services.
The amount of commission/successful fee for some premium agents is 3% of the transaction value. As for other services, it is still negotiable between 1% – 2%.
Real estate agents will take over all kinds of tasks needed to sell a house, such as placing advertisements, whether in print, internet, banners, or signs in front of the property to be sold.
There are several agents who are very oriented towards the target of a high house selling price. So you need to choose, from the many property brokers to share ideas with and help choose the right home for you. There are also agents who act and act as buyer agents.
A buyer agent is really balanced in serving buyers and sellers. Your agent will do his or her best to reduce the purchase price of the house, while at the same time finding the building and environment that is perfect for you.
Brokerage Service Fee
The cost of the services of a traditional property agent (broker) depends on negotiations with the seller or buyer. Sometimes they do not ask in the form of a percentage of the transaction value, but set a certain nominal value.
For example, they charge a fee of IDR 10 million at the price of a house that sells for between IDR 80 million and IDR 100 million. Even if they ask for a percentage, based on my observations, the amount of service fees or commissions for traditional brokers is between 5% – 10% of the selling value.
On the other hand, formal property agents (brokers) will usually receive a marketing fee of between 2.5% – 3.5% of the transaction value, according to the sales target and the agreed time. If the transaction value or the selling price of the house is IDR 500 million, the commission he will receive is IDR 12.5 – IDR 17.5 million.
Their commissions can reach 5% if their services range from marketing, administration, to the stage of credit contracts. For rentals (not buying and selling) property agent commissions reach 5% as well.
Normatively, those who are entitled to give commissions are the payee or the seller. However, it can also be shared between the seller and the buyer according to the agreement.