The broker, according to simple definitions, is the one who mediates between the seller and the buyer to facilitate a commercial or real estate deal. This is in exchange for a percentage of money. We all know brokers well and deal with them from time to time. But the number of brokers and their spread in all fields has become an issue that deserves attention. The number of these brokers has become in the millions.
The brokers are everywhere
In all professions and crafts, until half of the citizens became “brokers”, everyone became a mediator in buying and selling with or without experience. Everyone mediates and seeks until social media turns into a large auction hall, and brokers control the market.
Dozens or even hundreds of groups are on Facebook whose main function is to market products. This is based on brokers and intermediaries. Regardless of whether they are good or bad, but everyone is trying to “eat a living” in the language of the people of the country. So everyone has become an expert in everything.
Entering the market
You can enter this world which contributes significantly to increasing the cost of the good or service. This is mainly due to a large number of circles between the producer and the final consumer. This is in addition to the commissions earned by intermediaries.
The field in which the brokers are most active
The areas in which brokers are most active are real estate. I follow from time to time groups working in this field on Facebook. This is to the extent that one of the real estate brokers’ groups has reached about 70,000 people. This is a very large number that makes marketing impossible.
The average and luxury housing sector achieves from 80 to 100 thousand units annually, according to the statements of real estate experts. While social housing and units built by the state do not involve direct mediation in the stages of allocation and sale. The role of intermediaries may appear in later stages after paying the price of the unit and reselling it. This confirms that there is a “glut” in the real estate brokerage sector as everyone has turned into brokers!
The Brokers in real estate
The large numbers that work in the real estate brokerage field exacerbate the pressure on the consumer. They are chasing him day and night with annoying messages, and the companies that work in this field often do not provide salaries for this category.
The work is often “pure”. If a unit price in the market is one million pounds, the broker may start talking to you that its price is one million and 200 thousand. If you do not succeed in discovering the trick or have sufficient experience with prices, you will be exposed to fraud. Fraud is about 20% of the price of the housing unit you want to buy.
Of course in this case the broker will get a “respectable” percentage of the amounts charged to the buyer. This is other than the normal percentage he gets. Also, this affects the market negatively. The percentage of sales decreases due to the broker’s greed.
Beware of fraud
Real estate brokers chase you regularly, before buying the housing unit, and once the purchase is completed, and you get your full money or facilities, no one will contact you. Also, no one will answer you. You have become a goal accomplished, and you are no longer in the circle of attention. So he must beware the consumer takes into account all possible possibilities and turns to reliable companies or institutions. Companies with a good reputation can help you not to fall victim to brokers, whose numbers exceed all estimates.
There must be a legal mechanism to regulate the work of brokers. Brokers in the real estate sector in Egypt, especially with the presence of these large numbers, should be regulated. There is a need to establish a legal entity that expresses this category and organizes its work.
Measures can be taken to ensure that the real estate sector does not turn into a fraudulent investment style, which is known to economists as the “Ponzi chain”. This simply depends on persuading the public to put their money into a fraudulent investment, which generates returns, and as soon as the deal is done, the head of the chain gets what he was planning from the money. He goes out quickly to start losses on everyone who is inside this chain. So the game continues from person to person, and we have to watch out for real estate brokers before making any purchasing decision.