Online broking, Traditional brokers or No Brokers?

The rise of the internet has teleported most things to the digital age. As with everything else, even brokerage services have gone online. People are nowadays tech-savvy and use the quite often prefer with doing their dealings online. However, online broking is an incomplete concept if it is not backed by 100% offline support. There are several reasons why property brokers are still very active despite the availability of countless property listings on the internet. There are clear benefits of both online and offline broking. The traditional way offers experiential and subjective inputs to the prospective tenants and buyers. It personalizes their property buying experience. Having a face to face meeting with the broker, getting insights from locals, paying a visit to the property along with friends or family members as well as getting a feel of the locality all helps in quicker decision making. Property brokers normally operate in a network and often help customers negotiate the price and at times also help with the legal paperwork.

Buying a home is much more than just a purchase. Most people invest their lifetime of savings in buying a house. It is therefore the most important decision of one’s life and must be taken after ensuring all the options are weighed and calculated. Each individual’s requirement for a home is different and must be fulfilled accordingly. A professional broker ensures that he understands the needs of each buyer and helps him make the right choice. Online one can get many options but cannot get assistance in making the right choice. The personal touch is very crucial in real estate broking, making traditional broking the more trusted and valued option.

Explains Amit Wadhwani, Managing Director, SAI Property Estate Consultants. Whereas, with online broking the advantages are manifold and more objective in nature. A customer does not only have ample choice but he also has the ability to compare easily the multiple choices and pick the best options for him. Another advantage of using the services of a digital broker is the process-driven approach, documentation and 24/7 professional customer support. No matter the time or distance the online customer support will attend to a customer’s grievance immediately and try to provide an accurate solution. Alok Srivastava, Co-Founder, Reniso Estate Management Services Pvt Ltd articulates,

The benefits of either way of broking are quite clear. A savvy customer, therefore, seeks to finalise the transaction by employing both tools. A successful broking venture should therefore have online as well as offline presence so that it can cater to its consumer’s needs in a comprehensive manner.

However, the smartphone generation, has found a third option to acquiring homes without the consultation of a broker. The growing list of startups such as NoBroker.com joining the rental space means customers are now flooded with options when it comes to finding a suitable place. Such sites pose an advantage for NRIs as well. In fact, a large percentage of homes listed on such sites are by Non-resident Indians.

Real estate industry is crippled by multiple discrepancies such as asymmetry of information, exorbitant broker commissions, lack of satisfactory search, etc. Brokers focus primarily on closing deals and pay little attention to the satisfaction of the end consumer and in turn charge huge amount of brokerage. Most of online home search portals work in partnership with brokers. NoBroker.com is the only peer-to-peer home buy/rent/sell portal that eliminates brokers from the value chain with the use of Artificial Intelligence and Machine Learning algorithms. The platform is addressing the issues of information asymmetry by showing real-time price estimates. It is not only helping save crores of brokerage annually but has made the whole process consumer-friendly, freeing consumers from the malpractices used by brokers.

Opined Saurabh Garg, CBO & Co-Founder, NoBroker.com

Technology has touched almost every facet of life and the end user is adopting quickly to newer innovations driven by digitalization. The customer today is pressed for time and is seeking instant gratification which is being made possible through technology. We believe that tech disruption in this industry has commenced and going forward the lines between traditional and online services will blur out.”

expresses Alok Srivastava, Co-Founder, Reniso Estate Management Services Pvt Ltd. The tech disruption in this industry has commenced and going forward the lines between traditional and online services will blur out. It has evolved with time and the implementation of government policies such as RERA. India’s increasing focus on transparency and ethics will flush out the unprincipled brokers and thus bring about a change in the marketplace and further empower end users.  Going online

Pros	Cons
Customers can sift through thousands of online sites and complete a good part of their search online	High chances of being misled by fake listings and Benaami properties
Easily modifiable and process-driven approach	Discrepancy in properties discovered after the deal is finalized

  Staying offline

Pros	Cons
Building the trust vale with the customer	High brokerage charges
First-hand experience of the property, amenities and locality	Inability to compare features of multiple properties

  Going Broker free

Pros	Cons
No brokerage charges	Misleading images and false site descriptions, frequent technical glitches
The site handles the entire process as well as takes care of paperwork	Many a times brokers register themselves on such sites