Dealing in real estate is no easy feat, and the real estate world seems too vast for those not constantly involved in it. So much jargon and market fluctuations to keep up with on daily bases. Your dilemma is simple: You want to buy or sell your property…what should you do?! In this article, we attempt to simplify the difference between dealing with a real estate developer VS a real estate broker. Also, we try to set out an action plan for you on how to exactly proceed with your business interaction. Our aim is simple: trying to make your life just a little bit easier.
What are Real Estate Developers?
Real estate developers are the companies and entities that convert abstract ideas to properties in real life. The way a new real estate project is established is by having the developer buy the piece of land, determine the gap in the market they’ll utilize this land to fill – be it residential or commercial- and their target market and marketing strategy, develop the architectural design of the project, finish up the necessary paperwork and financing, oversee/build the structures, and finally sell / rent / manage said project. In order to execute that final step, developers have their own sales teams with the sole focus of selling their units in order to achieve a return on their investment. Developers take the greatest risk with their investments, and reap the greatest rewards.
What about brokers?
A real estate broker represents the interests of real estate buyers, sellers or both. A broker may come in one of two forms: either a freelance broker, or a brokerage company. Brokerage companies are licensed professionals who can negotiate agreements and manage the documentation required for closing real estate transactions. A real estate broker, in either form, typically receives a commission for successfully completing a sale.
One of the biggest misunderstandings when it comes to brokers is that they will hijack the price well above what’s actually requested to increase their commission. That is not the case. When brokers deal with developers and sell their primary units (units that are being sold for the first time), the broker’s commission comes directly from the developer. This means that as a buyer, you get exactly the same price if you buy it through a broker or through a developer.
Then why should I buy from a broker? Why not cut the middleman and head to the developer directly?
In layman terms, one can use a simple analogy to highlight the benefits of buying from a broker over heading directly to the developer. Picture this: you’re craving some chocolate! Which would be better: if you head over to a chocolate factory which limits your options to picking from its personal line of chocolate products; or if you head over to a supermarket, where you can compare, pick, and choose different chocolate factories’ products with their full line range? That is a very simplistic breakdown of what a brokerage has to offer as opposed to the developer (The brokerage being the supermarket). However, to answer this question fairly, we first need to determine what kind of buyer you are.
If you’re an investor, having a property consultant from a brokerage ensures you receive the best return on your investment. They can easily pinpoint the best locations to invest in, and based on previous data, where the highest return on investment would be. A developer, on the other hand, would only be aware of the return achieved through selling their own properties. Even if they are aware of competitors’ rates, they would be completely biased for themselves, and so wouldn’t provide a fair comparison.
As a prospective homeowner, a brokerage consultant would be able to provide you with the exact units tailored to your budget in the area you aspire to reside in. With an inventory far greater than any single developer, a brokerage consultant is more likely to zoom in on a better fit for you than if you try to fish among different developers yourself. They would save you a lot of time, effort, and in some cases, even money. Their advice and guidance could easily land you your dream-home leaving no room for regrets.
In all cases, brokerage property consultants would give the best unbiased advice and recommendations based on their expertise and bird-eye view of the entire market. Their impartiality comes from their lack of incentive to push you as a buyer towards one project over another. Either way, they’re getting their commission, so achieving a sale that would suit you best and have you finalize your purchase is their top concern. Additionally, they’re aware of the pros and cons of each developer they deal with. This is a direct result of the daily experience they gain performing their jobs, which gives them a much deeper understanding of the market than the occasional buyer. Their experience allows them to even suggest options you may not have known existed, which can help you land the best deal that would suit your requirements. They’d personally accompany you to different projects’ sites and take you through development options so you can pick, choose, and make an informed decision. That is opposed to the tunnel vision of a developer’s salesperson who would only be savvy to their own product collection and wouldn’t recommend any other market options albeit the possibility of competitors having a better fit for you.
Where should I start?
So you decided you’d like to buy a property. What’s next? First of all, it is recommended you do your own market research before involving the professionals. It is true they will provide much needed guidance for your journey, but it makes life so much easier if you at least have a faint idea of what you want. Where do I begin? On a real estate platform. A real estate platform is not just a website with listings on it. It is a website or an application with search filters that helps you zoom in on what you’re searching for. It also features photos of the properties listed on it to help you envision the unit. Additionally, a real estate platform should have a map that pinpoints the location of that unit or the project it’s in. Details of the unit price as well as the payment plans available are also popular commodities on the platform. All of these features are made to assist you with your initial research into the property you want to buy. They will help you set a realistic budget as well as get a general overview of the current market state. That being said, acquiring the assistance of a broker can save you a lot of research time, as they can provide you with tailored summaries and comparisons between properties that match your desire, since all the market’s availability is readily present at their fingertips.
What if I want to sell my property?
When it comes to selling your property rather than buying a new one, brokers are able to get you the best possible selling price. That is because, unlike yourself, real estate brokers can advertise your unit – be that through targeted word of mouth or on their platform- more efficiently, reaching out to potential buyers for you. Sure, you can try to push your property yourself, but you probably won’t be able to reach out much further than your own social circles. Meanwhile, in the line of their profession, the candidate pool for potential buyers when it comes to brokers is naturally much richer than personal social circles. This just logically translates to better sales opportunities which is ultimately to your own benefit as a seller. Moreover, a broker saves you the headache of negotiating with the buyer as they do that for you. In other words, your precious time is not wasted in endless negotiations with buyers that may not even be serious.
What’s in it for me if I choose Cooing?
Fair question! The Egyptian Real Estate market is full of brokerages that seemingly do the same thing. So why should you choose Cooing? Let’s make something clear: Cooing is NOT your typical brokerage. Cooing is a Real Estate Platform with a brokerage arm. This means you get the benefits of both in a single package.
Let’s break down what’s in it for you as a buyer:
First of all, Cooing’s online platform gives you an accurate-updated price range of variable properties in the market. The company prides itself on its vast inventory, with multiple tech-teams endlessly working on it to make sure it is both accurate and up to date, as well as to ensure you have the most seamless online experience as you browse said inventory. You can use the platform to filter your options as per your preferences, favorite different properties for comparison, as well as learn more about the locations and compounds in which the properties you like are found. Once you’ve gotten a general idea of what you want through the Cooing online platform, you can contact the company’s property consultants to move on to the next step.
Cooing’s property consultants are hand-selected – exquisitely – trained professionals who are knowledgeable and very well informed with the market’s latest updates. Your whole journey is guided by a single property consultant from cooing: from the initial inquiry to property research all the way till you sign your contract. As a property consultant, your contact person’s sole aim is to tailor their suggestions’ to your personal preferences, and provide you with multiple options to choose from. How do they do that? They create detailed comparisons between units that match your preferences and budget, which gives you a privileged bird-eye view of your choices, reassuring you of your final decision. Once that decision is made, Cooing’s property consultant helps you pick the best financing option for yourself. All of those steps the property consultant takes are optimized,not only by theconsultant’s valuable experience, but also by technological algorithms unique to Cooing ensuring you achieve the best result.
What about selling your property?
Cooing has got your back in that case as well. It starts off with using the company’s market expertise to accurately value your property and suggest the best selling price. Cooing then advertises your unit on multiple platforms and ad networks to help you reach potential buyers, guaranteeing you the best sale price. Cooing’s property consultants then offer your property to their vast network of buyers, where your home might just be the perfect fit for one of the company’s potential buyers. Not only that, but your property also gets pushed to potential buyers through a vast network of outside brokers who collaborate with cooing to market resale units.
Summing it all up
Even though developers give out all the glamorous vibes, buying your property through a brokerage makes more sense and gives you as a buyer your best options in the market. It’s best if you use a real estate platform to perform your initial market overview before proceeding with any purchase. Cooingestate.com gives you the best of both worlds as its inventory encompasses the majority of the Egyptian Real Estate Market, and its property consultants go above and beyond the average broker. This is applicable if you’re buying a new property, or selling your own. As a result, you simply can’t go wrong with Cooing.