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Chennai : Brokers' / Mediators' Nuisance Awareness

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Chennai : Brokers' / Mediators' Nuisance Awareness

Last updated: August 30 2016
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  • Chennai : Brokers' / Mediators' Nuisance Awareness

    As a buyer as well as seller, we all would have come across the recently evolving brokers' nuisance and arrogance in every resale property deals. I am not blaming the broker's service, who gets 2% of the sale price from both seller and buyer or sometimes only from buyer as a favour of the most demanding property holding seller / owner. In fact, we all (especially NRI investoers) were comfortable with such brokers, who are the best source of bringing multiple optons of properties in a particular area of demand.

    But now a days the trend is that, many greedy brokers (in fact all brokers), make a tricky game of pulling a huge and hidden intermittent margin from both owner and seller sides. Due to which the real price of the property never comes into picture during any resale property deal.

    For example, a owner who tries to sell his property for 600 rs psft (which could be the negotiable price as per the market price trend), greedy brokers intervene into the deal and push the seller to agree for 400rs psft ( in case of the seller being as a urgent needy seller) pretending to be a buyer. And then the broker bring a buyer into his trap (mostly first time investors , who never had explored / researched the current price trend), to whom he finalizes the deal price as 700 rs to 800 rs psft.

    Now the funny math is very simple. The needful seller, who had invested a long time ago, and waited for decades to get some good reasonable Returns, is not getting the money what he deserves. And moreover the innocent buyer buys the proprrty for a overprice or for future price. May be this buyer need to wait another 3 years to realise the sale price same as what he paid to buy it itself.

    The funniest part is, these clowns / brokers (greedy mediators), are making 400 rs psft (equal to the amount the seller got actually), just like that in a matter of week or two.

    Some times the clowns still go to further extent to fool the selkers by making a double sale on a single property parallelly.

    FYI: (sorry to mention this here. But it is true.) If we wonder that, why don't we dare to complain this nuisane to police or to the system, the funniest part is that, the majority of policemen and office clerks have already turned in to such mediator clowns. Such pathetic situation we have as buyer as well as sellers!!

    I hope, my statement is true and not exaccerating anything . If majority of this forum members support my statement, let's all together post our unique experiences and increase awareness to new buyers about this kind of nonsense.

    Tamil naatukku Thanni Than kondu vara mudiyala. Tharuthalingala yavathu veliya thalluvom. !!

    We should all work together through this powerful forum to get the greedy mediator clowns out of the scenario.
    Last edited August 29 2016, 01:10 AM.
  • #2

    #2

    Re : Chennai : Brokers' / Mediators' Nuisance Awareness

    One way to avoid all these nuisance is about how you set the terms with the broker you are engaging. This is what I have done in the past and these were my terms:

    1. Your brokerage value is for sourcing the deal. And to secure all the documentation what I 'need' to do the transaction and not what you 'can' provide. Even before he brings any properties, show your checklist, explain the process and your expectation. Make it clear what 'his' role is.

    2. If you do not have clients that you are in direct touch, I don't need you. No multi-level referencing.

    3. When it comes to price negotiation, brokers stay out and bring the buyer/seller together to the table and watch. This is non-negotiable.

    I pay the broker little more than what is usual. I do pay a nominal amount if lot of efforts have gone in but transaction was not done - amount small enough to find a better deal in future and large enough to feel not disappointed.

    If you cannot find a broker not willing to work 'on your terms', you would rather be better off being on your own scouting yourself than lowering your standards and engaging someone.

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    • #3

      #3

      Re : Chennai : Brokers' / Mediators' Nuisance Awareness

      Some location areas encourage bad brokers to converge because most of the brokers are already bad in an area. I have seen the same case in North India. As an investor you then rethink of investing because it's too much of a headache getting in and getting out. I think these things have to do with emerging location and don't happen in developed locations that much.
      Last edited August 29 2016, 01:23 PM.

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      • #4

        #4

        Re : Chennai : Brokers' / Mediators' Nuisance Awareness

        Brokers exploit NRIs since NRIs "think" that they can get all things done by sitting in US!! You have to pay huge price for that... Brokers at the end of the day here ONLY to exploit NRIs.... When you do not trust your own circle and trust some brokers then brokers milk the maximum. I do not see anything wrong.
        Last edited August 30 2016, 01:14 PM.

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        • #5

          #5

          Re : Chennai : Brokers' / Mediators' Nuisance Awareness

          Originally posted by Ramchi
          Brokers exploit NRIs since NRIs "think" that they can't get all things done by sitting in US!! You have to pay huge price for that... Brokers at the end of the day here ONLY to exploit NRIs....
          Not really. @SRaj001 has shown how to do it - remotely. I doubt anyone even on the ground can collect as much information he has, on a plot or layout. Anyone can see the amount of information he shared in various threads in 2012/13/14. He has FMB of layouts which are generally given up for 'not found'. How? Time to learn from NRIs

          Brokers are 'leeches' but you can still have them with 'leash' and do the grunt work that you cannot. It comes down to how you manage them rather than giving in to 'managed' by them.

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          • #6

            #6

            Re : Chennai : Brokers' / Mediators' Nuisance Awareness

            Originally posted by maverick007 View Post
            Not really. @SRaj001 has shown how to do it - remotely. I doubt anyone even on the ground can collect as much information he has, on a plot or layout. Anyone can see the amount of information he shared in various threads in 2012/13/14. He has FMB of layouts which are generally given up for 'not found'. How? Time to learn from NRIs

            Brokers are 'leeches' but you can still have them with 'leash' and do the grunt work that you cannot. It comes down to how you manage them rather than giving in to 'managed' by them.
            I hope everyone puts similar time,effort and skill into play[I am not sure what the gentleman did, whether he took the help of brokers or he himself went about it etc.., hence I cannot comment on that].

            Most of them try to get the info using The Web, Phone Calls, Reviews etc...which is nothing unusual but it has its own limitations as well

            The moment brokers get calls from NRIs, brokers kind of conclude that the buyer/seller has no one to back-up, they are pretty much at the mercy of brokers. Brokers as such have nothing to lose since they do not make any investment(other than their time and phone calls). They are also smart if you are trying to fish for information and they would easily find it out with the kind of maneuvers from buyers/sellers. But worst case, there will not be any financial loss for brokers.

            RE brokers invariably in most cases make substantial gains at the cost of both buyers and sellers.

            As you have mentioned, just being local does not guarantee you to strike better deals, but sitting in countries like US, it only amplifies further.

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            • #7

              #7

              Re : Chennai : Brokers' / Mediators' Nuisance Awareness

              Thank you maverick for your valuable pointers.I agree and these very good tips for the investors.Recently i concluded a deal and as agreed as per the norms of the industry I paid the commission of 2 %.The so called brokers/mediators did nothing just to bring the buyer.Can you believe what these clowns wanted as they are six of them they wanted 150 RS per SF.i told them to take a walk.Very unscrupulous guys

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              • #8

                #8

                Re : Chennai : Brokers' / Mediators' Nuisance Awareness

                Originally posted by Ramchi
                I hope everyone puts similar time,effort and skill into play[I am not sure what the gentleman did, whether he took the help of brokers or he himself went about it etc.., hence I cannot comment on that].
                How can a person sitting abroad miles away go about it? But, he still did it. That's the point I am driving it. Remember, every opportunity has an hassle - if you take the hassle away, there is no opportunity.

                Originally posted by Ramchi
                As you have mentioned, just being local does not guarantee you to strike better deals, but sitting in countries like US, it only amplifies further.
                My point is, what matters is how the buyer/seller manages the problem of dealing with brokers. Avoidance is easy. It does not solve the problem though. Managing requires skill and effort. Offshore or onshore doesn't matter as long as one knows how he should go about.

                Broker should be seen as an element which is part of a larger problem you are solving 'with them'.
                Last edited August 30 2016, 12:47 PM.

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                • #9

                  #9

                  Re : Chennai : Brokers' / Mediators' Nuisance Awareness

                  Ok since its me I need to reply I'm a bit slow on the forum I agree but I do read it time to time ..every investment particularly real estate needs management effort I'm still shopping I chennai although my interests have gone towards conoor and pollachi side for some retirement properties why no chennai you may ask the market has not presented any sense of urgency and the sellers are still sitting on mountain top even though there are no transactions so unless a distress deal comes across I have no urgency why bother right ? Conoor sims park area has done very well last few years good activity there so my thoughts are some beach some mountains why not ???? Lastly regarding brokers they are deal makers the only thing that gives u upper hand is cash and ability to close as long as you can demonstrate that there will be a dozen waiting in ur door to present deals and close .. It's a transaction they are in it for commission shorten the sales cycle cut corners on commissions seller selling price all possible when u present a no loan all cash offer ... You go through traditional methods you will be squeezed just simple law of real estate transactions ans believe it or not it runs the same way in US ALL CASH less contingencies are always preferred by sellers if not all cash high down but you get the point ....

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