The broker is the neutral man who hears both sides, the first to know if a deal can really take place
In the US and Europe almost all transactions are made with an intermediary
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Disclosure: Before I entered the world of brokerage I also thought that brokers are cheaters.
Honestly, I have no idea why I thought so.
The little I got to meet a broker or two before I entered the field, they were kind, charming, honest, talked about everything.
I came across two women in different situations, and both did a serious and respectable job.
I wonder why that thought was there after all, so much so that even though the real estate world fascinated me greatly, the thought of entering a field whose image was not so positive raised concerns in me.
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The big surprise occurred when I talked to my cousin Oren, and he as a veteran mediator asked me: "Why do you even need a mediator?".
While I was thinking, I answered, like a good Israeli, the question: "Why really?".
Especially since we are in the internet age and anyone can find properties for themselves.
Then he revealed to me considerations that did not even occur to me: price, security in the transaction, property protection, larger inventory than what is on the Internet and the ability of the realtor to cooperate with other realtors and make lots of other realtors work on your specific asset without compromising its value.
Another question he asked me: "How is it that in the US more than 90% and in Europe more than 80% of real estate transactions are made through a realtor? After all, most of us know that the US and Europe are developed countries and Israel is quite behind them.
What do they know that we Israelis do not know?
Moreover, if the brokerage fee in Israel is on average 2% plus VAT on purchases and sales and a month plus VAT on rent (and even in these cases there are exceptions), in the US the brokerage fee is about 6% to 7% per transaction. Why most of them Are you happy to pay the brokerage fee? "
Must note that after my conversation with Oren, my whole view of the world of mediation changed.
I realized that a broker is very essential in a deal, as he is the neutral man who hears both sides.
He is the first to know if a deal can really take place here, being aware of the asking price and how flexible the seller may be and being aware of the price the buyer is willing to pay and what his financial capacity is in favor of this deal.
Is the person who can find the equal valley, so that all parties will be satisfied.
Things to see from there
The realtor will maintain the value of the property for as long as he is the sole representative of the property.
Once there are a number of brokers working on the property, everyone will try to sell at a cheaper price in order to complete the deal quickly.
This is only if the property is attractive.
If he is unattractive, the realtor will not work on him at all, and will always prefer to pay attention to assets on which he has exclusivity.
This exclusivity is the responsibility of a realtor towards a client who has placed his trust in him that he will indeed invest maximum effort in marketing the property in the best possible way.
A professional realtor learns and researches the real estate world from many aspects. He enriches his knowledge in a wide range of areas, such as understanding the legal side to a certain level, especially the essential issues surrounding the transaction. He is not an attorney and is not a substitute for an attorney, but a bone. Knowing it can help with a lot of issues in the early stages of drafting an agreement.
He is a bit knowledgeable about taxation, a bit about planning and construction, a lot about the market situation in his area of expertise.
He will guide you and give you tools and guidance in dealing with the other side and many other issues that the sheet will be too short to contain.
The biggest surprise I experienced in the world of mediation, and it was said about it: "What you see from there, you don't see from here", is that I knew a lot of realtors and most of them are incredibly honest.
I unfortunately came across clients who tried to bypass the broker, and approached the broker I was dealing with directly, offered him certain offers, and the broker did not respond to them.
Even more surprising is that I received praise for the broker's integrity from the client who tried to get around.
He was just embarrassed and told me how honest my colleague is.
A somewhat unfortunate phenomenon that happened to me in the field of brokerage is actually on the part of clients, who because I respect them very much I did not sign them, and they took advantage of this and allowed themselves to reduce the brokerage fee unfairly.
They may have saved a few shekels out of pocket at that moment, which would pay them in state taxation anyway after the profit (it is important to mention that brokerage is a recognized expense for many years), but lost my trust and desire to work with them and offer them attractive deals.
A broker is among the first to be exposed to interesting deals.
He will prefer to offer them to customers who value him, his professionalism, understand his added value and pay him with a happy heart, and there are quite a few.
Why not everyone?
Some people have difficulty paying a brokerage fee.
To many of them it seems that the broker works little and earns a lot.
The question I ask is: why not everyone mediates, if the field is so profitable and easy?
Why engage in other fields at all?
Reality shows that out of about 1,500 to 2,000 people who take the mediation tests on average in the quarter, only about 60% pass.
The more interesting figure is that of those who passed and received a brokerage license, 80% retire in the first year, and another 10% retire in the second year.
Of the examinees, only about 10% survive, stay and engage in the field.
If the field was so easy, we would not have witnessed almost 90% retirement.
Apparently the practice of mediation is not as simple as it seems.
The customer who wins the deal needs to be happy, because a lot of deals that are brewing do not come to fruition.
This field requires excellent interpersonal skills, a strong heart, faith and endless learning.
This is in addition to everything that is involved in running the business: locating assets that do not exist in the network, a pool of potential customers, professional marketing and more.
Have you ever tried to find an apartment to rent?
This is a job in itself, which can take days and hours to locate the property that is specific to you and also take several months to locate the right property.
And that's when there are sites that help.
The search for a commercial property is even more difficult.
Since most customers are business people, who are busy promoting their business, a standalone search may take much longer and be less effective.
I have been involved in commercial commercial real estate for several years and deal with reputable businessmen. Most of them are amazing and decent people, well aware of the virtues of the realtor and find great value in it. Certain.
I have also come across those who have flirted with me to come and get what I deserve, which is definitely heartwarming.
The principle that should guide us all is "and love your neighbor as yourself," and then we will all be blessed with blessed deals.
Because even if we made a deal it is important that it be blessed.
The author is the director of the commercial division of the National Chamber of Realtors
Galia Levy
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