New agent from India

[Devendra Singh]

i am devendra.
reside in india.
i am REALTOR.
trying to make some profits out of it.
anybody has any suggestions?

[Vikram C.]

In India, sellers and buyers contact as many realtors (called brokers or agents) as possible and no realtor has an exclusive on the property. It is a tough business.

The other thing is that the seller and the buyer each pay commission. The "official" rate is 2% from each, but in reality this is discounted down to 1% or less. For larger properties, it can be even lower.

One other difference is that realtors are not really licensed professionals. Anybody can be a realtor by calling themselves that. This means that there is a wide variety in the quality and knowledge of realtors.

One more difference is that there is no MLS or equivalent. Realtors find out about properties available for sale or rent through word of mouth and by reading FSBO ads in the classifieds - primarily a newspaper called the Times of India. They then call the owners, check out the properties, etc. If they find a buyer, the buyer will at least pay them some commissions.

One more difference is that the rental market is more important to realtors in India than it is in the U.S. A good chunk of a realtor's income comes from commissions for rentals. The "official" commission is one month's rent each from the landlord and the tenant. This is often negotiated down depending on the circumstance.

I can go on and on about the differences. India is actually a great investment opportunity for investors with lots of capital. But it is really not suitable for smaller investors. If you guys are interested in more information, I will be happy to share. I know a fair bit about investing in India - much more than I do about investing stateside. Vikram