Realtors appeared in our country relatively recently - since the advent of private ownership of real estate. As soon as our legislation allowed the sale and purchase of residential property, real estate companies also emerged. To be more precise, this happened in 1991, when the Russian Federation Law “On the privatization of housing stock in the RSFSR” was adopted. After this, many apartments were transferred to private ownership, and this process continues to this day.
The Russian real estate market has been growing and developing rapidly in recent years. This is due both to the emergence of private ownership of real estate and to the active construction of residential buildings. Many Russian cities are experiencing a sharp increase in the number of new buildings. According to experts, this is due to the dilapidation of the country’s housing stock and the need to replace it. At the federal level, many programs have been adopted to improve the living conditions of Russians. However, it is worth noting that many Russian citizens take the housing issue into their own hands and build houses on their own.
The desire of citizens to invest in something reliable, which is real estate, has made the profession of a realtor very in demand and popular on the Russian market. However, due to the lack of a legislative and regulatory framework, real estate firms in our market do not have uniform operating principles common to all, which is typical for Western realtors. Therefore, real estate activity in Russia has its own characteristics.
Types of real estate activities
Areas of activity of a realtor
Real estate companies
Real estate service
Professional qualities of a realtor
Payment for realtor services
Types of real estate activities
Real estate activity is the activity of private firms and (or) individual entrepreneurs on the basis of an agreement or agreement with an interested party to carry out civil transactions with real estate and rights to them in the interests of the interested party.
The activities of realtors have various directions:
- agency;
- brokerage;
- activities of an attorney and dealer;
- trading;
- mediation;
- consulting.
In addition, we can name such types of activities as real estate management by proxy, legal support of real estate, development and redevelopment activities, information technology. The main activity of a broker is considered to be that which is carried out in the interests of specific individuals and at their expense. It is associated with the establishment, termination or change of their rights to real estate, which must be registered in accordance with the law of the Russian Federation “On state registration of rights to real estate and transactions with it.”
The services provided by real estate firms also include those that are not directly related to the mediation or purchase and sale of real estate. Realtors often provide services for the redevelopment or reconstruction of residential premises. In addition, real estate firms can engage in the following types of business activities:
- property valuation;
- purchase and sale of apartments on the secondary housing market and in new buildings;
- purchase and sale of private houses in cities and rural areas;
- leasing previously acquired real estate;
- organization of auctions and competitions for the sale of real estate;
- providing consultations on taxes;
- sale of mortgaged real estate;
- relocation of houses, etc.
In addition, the client can entrust the realtor to carry out any operation with his real estate. To do this, you must issue a notarized power of attorney to the realtor. Its validity period can be up to three years. When certifying a power of attorney, a state fee is paid.
From the above, we can conclude that the concepts of realtor and real estate company in relation to the Russian real estate market have a slightly different meaning than abroad, and the range of services provided by realtors in our country is much wider. In Europe and the USA, realtors mainly provide intermediary services in the acquisition and sale of property.
Thus, all real estate services can be divided into two groups:
- concluding real estate transactions;
- other actions that give rise to rights and obligations for the client in relation to real estate, but are not related to its civil turnover.
Consequently, real estate activity is an entrepreneurial activity in the real estate market, which is carried out by independent market entities, to carry out transactions with residential and non-residential premises, buildings, structures, land plots and rights to them.
Carried out on the basis of an agreement with the interested party. The main goal of a realtor is to make a profit as a result of concluding transactions with real estate. A realtor can act both on his own behalf and on behalf of the client, but always at the expense of the client in whose interests the transaction is being made.
Realtor or realtor - which is correct?
Another question that worries everyone who cares about the Russian language: how is this word realtor or realtor actually spelled? Both forms appear in modern dictionaries, and therefore both spellings are acceptable.
Linguists have long been arguing about how to correctly spell the word: “realtor” or “realtor”.
Both names are acceptable according to the norms of the Russian language. But real estate experts have made an unambiguous conclusion: a realtor sounds more convincing due to the hard “E” .
So, the spelling realtor and realtor is considered acceptable; other variants should not be used, although they can also be found in modern dictionaries.
Areas of activity of a realtor
A realtor is often called a real estate agent, broker, attorney, or dealer in the market. What is the difference between these concepts?
A real estate broker is usually an individual who has received a broker qualification and has been working in the market for at least two years. Having a qualification certificate gives the right to sign documents on behalf of a real estate market entity. The broker enters into agreements with clients to carry out civil transactions with real estate, as well as change the ownership rights to it.
A broker operates on behalf of an independent entity in the real estate market. It involves negotiating, bringing to the attention of business partners or potential buyers information about real estate objects involved in turnover, and distributing advertising. The result of the broker's activity is the purchase, sale, exchange, rent, mortgage, leasing of real estate or other transactions with rights to real estate. Its goal is to make a profit.
A real estate agent is an individual who has received a qualified agent certificate and represents the interests of a broker. The agent works directly with clients and carries out preparatory work for the broker to conclude agreements with them on transactions with real estate and changing ownership rights to it. An agent, unlike a broker, does not have the right to sign documents on behalf of market entities. He conducts his activities on the basis of a civil contract concluded between him and the broker.
The activities of a real estate agent include the functions necessary to carry out auxiliary actions for transactions in the real estate market and operations related to the transfer of rights to real estate. These functions are delegated to him by the broker of an independent real estate market entity.
As an attorney, a realtor works on the basis of an assignment agreement concluded with a client, which provides for the imposition on the realtor of obligations to carry out, on behalf and at the expense of the principal, certain legal actions in relation to property owned or used by the client.
The activity of an attorney can be considered as a real estate agent only if it is related to the alienation, acquisition, acceptance or transfer for temporary or permanent use of real estate specified in the contract.
A realtor acts as a dealer when the real estate that is the object of a purchase and sale transaction is in his ownership (it was previously acquired for the purpose of sale).
Dealership activities are usually carried out by large firms, since they require significant investments. First, realtors purchase real estate, then sell it at a higher price or rent it out. Space can also be purchased in residential buildings under construction under contracts for the assignment of rights of claim. Acting as a dealer, a real estate company may not enter into an agreement with the consumer for the provision of real estate services - the legal relations of the parties are formalized by lease or sale agreements.
Description
The profession of a realtor is the ability to do everything. One person must combine a sales manager, a lawyer, an economist, a psychologist and a diplomat. All these qualities are necessary for successful completion of transactions. The most important thing for a realtor is his versatility and ability to adapt.
The responsibilities of a specialist in this profession include presenting real estate to potential buyers, preparing all necessary documentation and verifying its authenticity. Association of seller and buyer, execution of the transaction. At the same time, a realtor can additionally help in re-registration of ownership of real estate, which is a big plus for him.
In addition, a good realtor knows how to correctly present both the advantages and disadvantages of the objects being sold. Knows all the rules and techniques of successful sales, knows how to work with objections, successfully overcoming them. After a transaction with a true professional, clients will always be satisfied and will recommend him to all their friends.
Real estate companies
In the Russian Federation, all real estate firms can be divided into two types. The first type are companies that provide only intermediary services in the real estate market. As a rule, these are small organizations whose activities consist of selecting various options for the purchase, sale, exchange or rental of real estate. Such firms are common in most Russian cities, and the main condition for their existence is the presence of demand for the purchase, sale, rental or exchange of residential premises.
Real estate firms of the second type not only provide intermediary services for concluding real estate transactions, but also take part in transactions themselves. Such firms can invest in construction, participate in the construction of residential complexes on a shared basis, and buy housing on the secondary market. These firms are quite large, usually have a complex structure, and may have branches and representative offices in different cities.
The development of real estate firms occurs in different ways. Some of them prefer to open branches in different cities and regions, believing that it should be convenient for their clients to get to the office. Others consider it more appropriate to develop new areas of activity.
Many organizations prefer to specialize in certain areas of real estate activity: purchase and sale, consulting, mortgages, or allocate separate employees for each area. The reason is that many types of services are complex and require a special approach and specialized knowledge. Universal specialists involved in several areas at the same time are becoming increasingly rare.
Real estate service
Real estate services begin from the moment a client contacts a real estate agency. Any realtor service consists of two parts: preparation for the transaction and its implementation. Preparing for a transaction includes several sequential steps.
First, the client contacts the agency and expresses to the realtor his wishes (whether he wants to purchase, sell, rent real estate or carry out another transaction with it) and gets acquainted with the agency’s working conditions. If the client is satisfied with them, a contract is concluded. When purchasing an apartment, the buyer’s requirements for it are drawn up, and the realtor selects suitable options. When selling property, a realtor collects and checks the necessary documents, places advertisements in the media, researches demand, and arranges showings of the apartment.
After the buyer and seller have found each other with the help of a realtor, the parties agree on the terms of the transaction - the cost of the property, the terms of the transaction, the payment procedure, the terms of vacating the apartment, etc.
Then the seller (again with the help of a realtor) prepares all the required documents, and the buyer finds funds for payment. After this, the parties sign an agreement on the procedure for transferring ownership of this property from the seller to the buyer. This ends the process of preparing for the transaction, and the realtor begins its actual implementation.
Conducting a transaction involves registering an agreement with the Federal Registration Service (Office of the Federal Registration Service), deregistration (deregistration) of all persons registered in the apartment, and the departure of the former owners. The seller must provide the buyer with residential premises that are free both legally and in fact, within the terms specified in the contract. In accordance with the terms of the contract, the buyer is obliged to transfer the specified amount of money to the seller.
After the seller receives the money, and the buyer receives the property and ownership of it, confirmed by the necessary documents, the realtor’s service is considered completed and he is paid a remuneration.
Thus, a real estate service is a set of actions required to complete a transaction with a real estate property required by the client. Each such transaction is unique and requires a different set of actions carried out by the realtor in the interests of the client. Contacting professional realtors allows you to find the best options for resolving your real estate issue, which helps save time, money and nerves.
The quality of services provided to the client by the realtor is determined by the fulfillment of all the conditions stipulated in the agreement concluded between them. When purchasing or selling real estate, such conditions include the price of the property, the amount of payment for its use, the quality and operational characteristics of the property.
Who is this profession suitable for?
The profession of a realtor is suitable for active and hardworking people – workaholics. The working day is irregular, so a day off can turn into a weekday in a matter of minutes if a potential client calls. A realtor's earnings directly depend on how hard he works. After all, his income depends on the number of clients.
Communication skills and the ability to restrain oneself are important. You should always smile and, even in the most unpleasant situations, remain calm, pretending that this was expected and everything is going according to plan.
A realtor must have excellent organizational skills. He is involved in presentations and organizing his work.
Demand
This profession is always in demand. This is quite a difficult job, and many people give up halfway to success, unable to withstand the difficulties. If you decide to become a realtor, remember that this is work for results. Be prepared for difficulties and obstacles.
You can always find realtor vacancies on any website or in a recruitment agency.
Professional qualities of a realtor
The main qualities that a realtor must have are communication skills, attentiveness, the ability to think analytically, and clarity. In addition, it is desirable that he be a good psychologist - this will help him easily find contact with potential clients. Clients are often distrustful, cautious, and sometimes poorly able to explain what exactly they want. A realtor must delve into the problems of clients, be able to identify the main thing, and help set priorities.
In the real estate market, work is carried out in several directions. Some realtors sell secondary housing, others sell apartments in new buildings, and some specialize in rental housing. But in any case, a realtor must work with a large number of different documents. Therefore, it is necessary to know the intricacies of drawing up contracts and agreements, to clearly understand what documents will be needed to complete a specific transaction.
Depending on the stage of their occurrence, the entire volume of documentation can be divided into two groups. The first stage of document flow is the preparation of the required contracts, agreements and execution of documents for all concluded transactions. The second stage is the state registration of transactions with the justice authority of the Russian Federation for registration of rights and transactions with real estate.
A qualified realtor accompanies a real estate transaction until the client receives from the registration chamber all documents confirming the state registration of real estate. If a realtor does not say until what point in the transaction he will accompany the client, he should be wary - such behavior may indicate an attempt to deceive the client.
A large number of individual entrepreneurs and firms engaged in real estate activities has given rise to fierce competition in the real estate market. This requires realtors to improve their qualifications, quantity and quality of services offered. Therefore, some companies undertake to provide clients with a full range of services, including assistance with relocation. The reputation of the company is of considerable importance, since it affects the degree of customer trust. If a realtor is involved in any housing fraud scandal, the flow of clients to him will immediately decrease.
Payment for realtor services
There are no uniform rules for payment for real estate services; each company chooses the method of payment for its services independently. Large organizations usually establish a tariff system. The amount of payment may be fixed or determined depending on the value of the real estate involved in the transaction. Different types of transactions can have their own payment option. For example, when making transactions to re-register rights to a land plot or renovate (redevelop) an apartment, the price may be fixed. When buying and selling property, the price of the service varies depending on the value of the property.
Some realtors charge an advance payment for the services they provide, while others receive payment only after the work is completed. The following procedure for determining the price can be established: the client names the desired value of his property, and if the realtor manages to sell it for a higher price, then the difference will go to him as a reward for the services provided.
