Deal with a Trustworthy Real Estate Broker
When buying real estate in the Philippines, the broker or agent who will assist you is supposed to be your partner. He should be looking out for you and should have your best interests in mind.
Unfortunately, there are a lot of real estate brokers who just do not really care about the buyer. They are only focused on making a quick sale and getting their commission.
These bad brokers and agents very often cause a lot of problems for the buyer. They tend to cut corners, tell lies, and trick buyers into purchasing a property they are selling even if the buyer is not qualified.
If a buyer is not qualified, he may have already started paying the installments for the property before realizing that he cannot afford it. If the documentation is not done correctly, penalties, charges, and a host of other problems may arise in the future and the broker or agent is long gone can not be contacted.
These are just some of the problems a buyer could face by dealing with an unscrupulous broker. So if you’re buying a property, you should look out for them. Here are some signs that will help you tell whether an agent or broker can be trusted.
1. He knows what he is selling
If you are buying a condo unit from DMCI Homes, they usually have sales teams that comprise of a manager and his agents. The real estate broker is usually the one who will directly assist you with your purchase.
A smart and reliable agent knows most, if not all, of the details about the project he is selling; an agent who is not worthy of your trust does not. This is very important since your agent should be the one assisting you with the documents and making the follow-ups with the developer. If your agent is incompetent, mistakes in the process are very likely to happen and you will most probably be left hanging as soon as problems start to appear.
Furthermore, a broker who does not really know the property he is selling is one who did not do his homework. This is an early indication of what you can expect from him. If he did not take the time to know the property thoroughly, then he is likely to not take the time to do things properly in your transaction—and this will give you a lot of headaches later on.
2. He asks what you need
You can tell that a broker or agent is trustworthy if he asks you what you need, rather than pushes you to buy a property you do not really want.
You can tell if a real estate agent or broker does not really care about you, other than to close a sale and get his commission, when he keeps pushing for a certain project or a particular property that certainly does not fall under your requirements. Most often you will not hear this broker ask you about what you need, the purpose of your purchase, or your requirements. Instead, he will try to push a certain property until he gets you to sign the deal. Do not give in, unless you are totally convinced the property is the one you need.
One of the things that lets brokers and agents know whether the property is right for their client is asking what the client actually needs. For example, if the client needs a condominium unit that is good for long-term rentals, then something situated outside a business district where there is no large pool of potential renters is definitely not a good fit. Buyers are always advised that in order to avoid disappointments, the right expectations should be set early on.
Another example would be when a client is looking for a good property to invest in today and make profit from selling it in a few years’ time. Buying a preselling property would be more appropriate in this case. But if your agent or broker is focused on selling his ready-for-occupancy property, he will stick to it instead of offering the ones that are more appropriate for your needs.
Also, make sure that even years pass by, you are able to contact him, or he gives you updates of your preselling purchase.
3. He tells you both the Pros and the Cons
Every choice has pros and cons, and buying real estate is no exception. So if your broker or agent does not tell you about the other side of what he is offering, it is either because he is lying or he is just too incompetent to see the other side of things. Either way, he is not worthy of your trust. Of course, as part of their job in marketing the properties, they will not really highlight the cons or voluntarily bring them up. But when asked, they should readily be able to give you some information—and be as truthful as they can.
4. He has a license or registration
Under the Real Estate Service Act (or RESA Law), brokers and real estate agents in the Philippines are now regulated by the Professional Regulation Commission (PRC). If a broker does not have a PRC license (or registration, in the case of sales agents), that means he is woefully unaware or ignorant of the country’s fundamental real estate laws.
The PRC license also tells you that you are dealing with someone who is serious with his profession. If the broker causes you trouble, you can sue him to get his professional license revoked and he will consequently be prohibited from continuing with his practice. In short, he has something to lose in case he does not do his job properly. This is a good motivation for him to serve you well.
With these tips in mind, you should now be able to easily spot which brokers or agents are likely to only cause you problems instead of helping you get the best property deals. We cannot emphasize this enough: real estate brokers are supposed to be your partner in buying a property, especially when it is for investment, so choose wisely whom you deal with.
Ask for Mikko and Noemi’s PRC and HLURB IDs.
This article was sponsored by Lamudi Philippines.