Importance of a Channel Partner and Brokers in Real Estate

Author Admin

Published Date: 24 Dec 2024

By 2030, India's real estate sector is predicted to grow to $1 trillion, accounting for roughly 14% of the nation's GDP. As a result of the fast urbanization of cities like Bangalore, Chennai, Mumbai, Noida, and Gurugram, the size of the Indian real estate market has increased. These cities' easy access, plenty of employment prospects, and variety of leisure options are making them the top destinations in India for real estate investment.

The people who assist various property buyers in honing their search for the ideal investment for their ideal home or in suggesting an ideal investment in the commercial or retail sector are known as channel partners, real estate brokers, real estate agents, or property agents, among other names. In addition to helping the buyer, the channel partner also encourages builders or project owners to disseminate positive word about their vision, deliveries, future projects, and how they handle customers' money and wants.

Therefore, the buyer, who had countless inquiries and concerns prior to the purchase and genuinely becomes perplexed by the present real estate situations, can understand the true significance of real estate brokers. With the assistance of these real estate professionals, they can inform us how simple it is to prepare an investment in real estate.

So, before going ahead we need to under Who is a Channel Partner or Real Estate Agent?

The rapidly expanding real estate industry relies heavily on channel partnerships to propel growth and profitability. Real estate companies collaborate with external entities or channel partners to promote, sell, and distribute their goods and services.

Because of the fierce competition in this sector and the relative complexity of the transaction process, these alliances can be used and understood to great effect, expanding market reach, increasing sales, and streamlining operations.

A channel partner in real estate works directly with builders to offer their properties through a network of highly qualified sales associates. A channel partner helps to close the gap between buyers and builders and expedites the process of purchasing and selling real estate.

Terminologies related to Channel Partners or Real Estate Agents

As we mentioned before, there are various types of real estate brokers, property agents, and other channel partners. A consumer must first grasp each of these individuals and then their distinctions in terms of their identities and classifications.

Real Estate Brokers: To put it simply, a broker usually buys and sells products on behalf of other individuals. Between two parties, they serve as a mediator. A broker is a person or company that engages in "buying" and "selling" in exchange for a commission or fee. A real estate broker so assists in the sale of a property. Although a real estate broker is authorized to operate independently and may hire agents, they perform the same duties as agents. Their duties are identical to those of a real estate agent. Directly assisting purchasers, real estate agents search for houses that meet their requirements, negotiate, draft offers, and assist buyers with other matters.

Property Agents: An agent is a person who has been granted a license to sell a property. But to be an agent, you must have a real estate license. An agent works for a broker and is unable to operate on their own. As a licensed professional, a real estate agent connects buyers and sellers, organizes real estate transactions, and negotiates on their behalf. Real estate agents' income is based on the quantity and size of transactions they close because they are typically compensated with a commission, which is a percentage of the sale price of the property.

Relator: A real estate agent who is working to help the builder sell their inventories is called as realtor but only the one who is having the license to sell them is defined as realtor whereas not all the agents are realtors. A realtor pledges to respect the association's Code of Ethics and to hold one another responsible for providing the public, clients, and customers with the highest caliber of care and practice.

Channel Sales: A business that sells its properties through outside partners is said to be engaging in channel sales. These partners may include affiliate partners, resellers, value-added providers, or another distributor that a representative or company has contracted with.

Difference between a Channel Partner and a Real Estate Broker: All you need to know about them.

Channel Partners	Real Estate Brokers
Expertise, Channel partner companies used to have a larger sales force and more seasoned real estate advisors, which allowed them to better grasp the industry, real estate trends, compliances, and a variety of other factors that help meet buyer needs.	On the other side, a real estate broker has little to no expertise about the neighborhood, builders, and location. They normally cover a small number of builders and their properties, and only in areas that are close to their homes and inside their comfort zones.
Broad reach, as channel partners employ digital, ATL, and BTL marketing strategies to reach a larger audience. Additionally, they provide a specialized sales team to a particular project in order to facilitate a smooth transaction between the developer and buyer. They invest both money and time in marketing campaigns and the acquisition of competent staff.	Simultaneously, real estate agents used to operate in a tiny, closed circle, converting a small number of customers at a time by converting random purchasers and attempting to transform them into potential buyers.
Better Deals & Negotiations, as a channel partner, the company guarantees the builder that it will sell a good number of stocks, resulting in a good deal for the customers and the ability to give big discounts.	A real estate broker will find it difficult to provide a better deal and discount to the final consumer due to constraints and the capacity to sell two to three units in a project with thousands of inventory; instead, they will strive to save more.
Organized setup, Channel brokers provide free advisory services while they work with the developers. By serving as an extension of the developer's sales team, the channel partners help project sales. He is a trustworthy resource if the buyer has any inquiries about the house or cannot find information from the developer's sales staff regarding a specific problem.	A smaller team or individual won't be able to devote as much time and resources to the final consumer, nor will they be able to interact directly with the builder like channel partners. When someone else gets in the way, they might guide a consumer to the middle and search for higher commission earning chances.
Client Protection, Real estate channel partners safeguard their clients during the whole process. Your information is more likely to be lost once you deal with a channel partner who treats you like a loyal customer. By addressing any questions and concerns and even scheduling direct meetings with project owners, they will attempt to satisfy a client by maintaining an equitable and open transaction to prevent misunderstandings and uncertainties.	When you contact a small scale eal estate broker, there is a greater chance that your customer information will be shared with numerous other brokers. This can happen for a variety of reasons, such as not completing the transaction with the specific dealer, failing to address the customer's questions and enlisting the assistance of another broker, or failing to assist the customer in making the best choices and recommendations. Therefore, choosing a real estate broker on your own carries some risk.
Vast property portfolios, because a channel partner used to have a larger setup, it is likely that they can recommend better options to a customer based on the client's budget, location, and property type. These options may include Commercial (Retail, SCOs), Residential, including both low-rise and high-rise properties, Plots & Land investments, and many other short- and long-term investment and exit options.	A broker, on the other hand, has few options and probably only deals in one market, such as affordable real estate rather than luxury houses, or, to a lesser extent, B-level builders rather than A-grade and top builders. Therefore, a client may find it difficult to choose the best investment options from a single real estate broker or from a group of brokers.
Customer Support (Pre-Sale & Post-Sale services), a channel partner who wants to work with a buyer for a longer period of time will be able to assist the buyer not only in purchasing the ideal property but also in determining when to sell or in recommending another investment opportunity at the same time or later. They are always available to customers.	Brokers typically believe in closing deals quickly while maintaining a short-term relationship. They provide services until the current transaction is finished, with little regard for post-sales support and service. A broker conducts speedy transactions while taking a customized strategy.
Financial assistance, a channel partner that has worked on 100s of real estate projects, they have improved their standing with banks and other financial organizations and are able to offer a greater range of financial support to customers, including mortgages and better HomeLoan interest rates, if they are looking for them.	As sole proprietorships or smaller businesses, real estate brokers lack a strong hold on and relationship with big banks, which hinders their ability to provide customers with financial guidance and support. In order to complete your business, they will probably connect with major channel partners or require assistance from a different broker or individual banker, neither of which will be very effective.

Roles & Responsibilities of Channel Partners

Since it is not always possible to deal directly with project owners and property builders for every question, it is essential to have a trustworthy source that customers can rely on due to the real estate industry's explosive growth and the rise in defaulter builders in the market. The significance of Channel Partners, who are authorized individuals who assist builders in marketing their residences to consumers, now becomes apparent. For all A-Z information regarding the property, they serve as a liaison between the builder, project owners, and final consumers. Today, we'll highlight some of the most important areas where channel partners need to step up and assume responsibility for educating customers.

Real Insights– A channel partner's primary duty is to provide accurate information about the builder and the property they are selling. The main responsibility is to advise the client on the benefits and drawbacks of investing in real estate, since one is investing all of his hard-earned money.

Customer Relationship & Management: Helping customers through the entire leasing or buying process. Since the builder is not always accessible directly, a good channel partner can fill this gap and satisfy the consumer.

Transaction & Deal Coordination: Engaging customers, conducting client consultations, setting up project site visits, assisting with financial options and negotiating various payment options with builders, and ultimately assisting the builders in issuing a customer check to complete the transaction is another crucial function of a channel partner.

Transparency and Accountability: In the real estate sector, trust is a major problem, as evidenced by the list of unfinished projects and the daily news about the flaws and failures of projects in the market. When channel partners share correct information about the builder, project legal compliances, land ownership status, and other potential dangers and future growth prospects, they can effectively close this gap between the builder and customers.

Why Channel Partners & Real Estate Brokers are essential for Builders and Project Owners?

Because channel partners and individual or small-scale brokers each own unique knowledge and control over the market, it became essential for project owners to work with them in order to sell their properties. Because they can assist the builder with:

* Marketing & Promotions: In addition to having their own networks and markets, brokers and channel partners can help new projects launch by promoting them through word-of-mouth and other branding and marketing strategies. This will increase the project's visibility and ultimately speed up its sales.

Immediate Funding: Builders can be guaranteed a certain number of inventories and obtain finance from their channel partners to cover immediate cash needs by providing them with the mandates. When the builder needs rapid cash to handle their everyday company obligations, this provides relief.

* Better Sale Opportunities: By using their connections and marketing expertise, channel partners and real estate agents working with real estate brokers can provide developers more leads and consumer inquiries. Consequently, sales quantities could rise.

* Less Ground Work More Productivity: Brokers may provide homeowners with specific advise because they are better familiar with the area, which results in less ground work and increased productivity. The site inspections, documentation, negotiations, and coordination of their group of leads are handled by brokers. This helps sales teams save time and effort in a way. Brokers help projects become more visible online by listing houses on several real estate platforms.

* Competitors Analysis & Insights: Your channel partner effectively listens to what your competitors are doing in the market, what the selling percentage is, what kind of projects and inventories they are working on, what the target audiences are actually converting for projects of a similar nature, and many other small and large inputs that are necessary to make your project successful. Therefore, having a strong network of channel partners and respectable brokers greatly increases a project owner's value.

As a Customer:How to Choose a Right Channel Partner or Real Estate Agent/Broker?

In all of India, there are half a million channel partners, both registered and unregistered, independent brokers, real estate agents, and property specialists. You may also discover hundreds of them in your neighbourhood. Finding a qualified and suitable real estate consultant is a difficult endeavour. To make it easier for you, we have a few recommendations to help you streamline your search and find the finest candidate for your upcoming real estate ventures.

Here are some pointers to assist you in selecting the best real estate channel partner:

Assessment of Potential Channel Partners: Assessing the real estate partner's strength in terms of builder and project connections, the number of inventories they have sold thus far, the strength of their workforce, and any public listings should be the first and foremost strategy. You can also visit their offices and meet with senior management to learn about their goals and visions, and finally, how they are ensuring that your investment is safe and secure and what kind of returns they will provide when you exit.

Keeping Deliverables and Expectations in Check: You must be aware of the possibilities of the channel partner you are working with as a customer. Is this partner able to meet your expectations? For example, do they have the kind of builders and projects in Kitty that you are interested in investing in? How will they fulfill your expectations in accordance with your location and budget, and how will they ensure that your investment deliveries arrive on schedule?

Consistent Feedback and Communication: The only surefire way to ensure effective and successful channel management is to keep up a current relationship with your channel partner. Maintain open channels of communication to handle any problems, give updates on projects, and inform you if things are proceeding according to plan in terms of achieving a common goal.

Information, Updates & Resources: Your real estate agent partner should be up to date on the latest legal jargon and real estate trends in Mumbai, Bangalore, Gurugram, or any other city. He should also be prepared to manage every real estate transaction quickly and efficiently.

Credibility and Trust: Building trust with your channel partner or real estate specialist can help you protect your investment and ensure that the property you are investing in today will yield a healthy return. This confidence will develop once you have established their reliability with the builder, your neighbours, the team size, and their previous sales of merchandise. Therefore, before working with any real estate broker or channel partner on your future real estate investment, make sure to carefully review this.

We at PropKonnect.com are here to make this easy and straightforward. You may search and filter our comprehensive list of reputable registered Channel Partners, real estate brokers, and agents from all across India.

Below is a list of a few of our top channel partners in India:

These are few references and recommendations for you but as always said you do your own research and finalize anyone basis on your findings and choice.