The Role Of The Realtor/Real Estate Agent: Friend Or Foe? -By Godwin Ebuka Nnamoko

INTRODUCTION

Across every city in Nigeria, several people have various tales to tell about their experiences with some real estate agents; ranging from the completely hilarious encounters to the entirely grim episodes. Stories abound where real estate agents have taken clients to uncompleted buildings and told them: “once you pay, the landlord will use your rent to roof the house and finish plastering and tiling”. Not only are such statements comically ludicrous they are outright scams when you consider the possibility of being able to roof, plaster and tile a house with a rent of say N300,000?

Of course, the role of a realtor/real estate agents transcends the everyday function/reputation of being the link between a landlord and tenant for the traditional 10% fee. Ideal real estate agents worth their salt do much more as they provide guidance/advisory to their clients in real estate dealings. Indeed, beyond the unpalatable narratives of the dealings of some realtors, real estate agents can guide you in identifying rewarding investment opportunities, following market trends in the real state sector, brokering transactions, leveraging professional networks etc. These quintessential roles of the real estate agent/realtor are the focus of this article and shall be discussed below.

ROLES OF THE REALTOR

• Identifying Rewarding Market Trends: Some 15 -20 years ago, the Kaura, Wuye and Katampe District areas of Abuja were largely regarded as “bushes” and to the non-discerning eye, buying property in such areas would not be profitable. On the contrary, the opposite is however true. People who bought properties in those areas for as low as N7,000,000 now make profits of over 1700% as those properties now have valuations of over N 170,000,000. These are the kind of opportunities a good realtor can help a client identify – for instance, to know what areas or parts of a city government policy or private sector investment would rapidly develop and then strategically purchase property in those areas.

• Leveraging Professional Networks: Standard real estate agencies operate as one-stop shops – they aid clients in identifying properties within budget and preference spheres; ensure the conduction of due diligence as regards the title of properties through their in-house legal teams; and the provision of other professional services such as obtaining survey plans etcetera. A further advantage a real estate agent can offer is that even when they are unable to personally provide a specific service, owing to years of industry experience, they can always connect their clients to the appropriate professionals such as lawyers and quantity surveyors in a bid to get the best for their clientele.

• Brokering Transactions: Many potential investors are laymen – without knowledge of the prices of properties or suitability of properties for specific uses. By engaging a competent real estate agent, a client is afforded the benefit of buying or selling his property at the best market price. For instance, when selling a property, an agent would be able to effectively advertise same and promote such a property within the right circles that would ensure quick purchases. Similarly, in purchasing property, agents can equally aid in protecting client interests by negotiating costs, structuring payment plans, facilitating bridge financing, sourcing mortgage facilities etcetera.

• Estate Management: In addition to helping clients secure property, real estate agents can also be instrumental in ensuring that the properties are put into the best possible use that yield returns – by providing facility management services. As facility managers, real estate agencies ensure that rented properties are properly maintained to ensure they attract the best possible rent, they save landlords the hassles of having to advertise properties for rent and equally play a vital role in interviewing prospective tenants and the eviction of problematic tenants.

CONCLUSION

As discussed, a real estate agent/realtor can be very instrumental in ensuring that investing in real estate is a rewarding experience to an investor. Accordingly, engaging competent realtors or agencies is invariably a smart decision for the many benefits they bring to the table. One of the timeless lessons on investments from George Clason’s The Richest Man in Babaylon goes thus: “But why trust the knowledge of a brick maker about jewels? Would you go to the bread maker to inquire about the stars? No, you would go to the astrologer…”. The story leading to this advice was essentially about a man who had lost a fortune by engaging in a jewelry trade based on the advice of a brickmaker who had zero expertise in the trade of jewelry. It therefore makes sense that every investor, especially when in doubt, should take the conscious effort to engage the advice/services of competent realtors in navigating the rigors and intricacies of real estate investments.

Godwin Ebuka Nnamoko
He can be reached at: Gwinnnamoko@gmail.com 08130274749