The promise of lucrative returns, brought about a boom in the Philippine real estate sector resulted in huge profits for real estate developers, whereby real estate brokers and salesmen, likewise had their share of the benefits.
This new year, 2014, will bring new opportunities and we expect real estate to remain bullish. The Philippines has once more become the “flavor of the month” and “sweet spot” for local and foreign investors. The favorite property sectors will be in housing, residential development, commercial and retail, office spaces, BPOs, and most importantly the reconstruction and redevelopment of the Visayas region affected by Yolanda.
If I may, take the case, of Real Estate Broker Gabriel “Billy” Dominguez, who made a huge leap from being a government employee, to becoming a successful real estate sales agent, believing that a career in this sector holds huge opportunities for any individual. Today, Dominguez is president of his own real estate company called Green Circle Realty.
“While working as a government employee, I saw the need to augment my income. I told myself that my salary alone as a government employee would not be enough to provide for the needs of my growing family,” Dominguez shared.
Dominguez’s life-changing moments came when he was invited by a friend to attend a seminar on real estate selling, which he immediately accepted. Shortly afterwards, he became a part-time sales agent.
And as Dominguez was trying to learn the ropes of the business, it was then that he started to realize that he was earning more from his part-time work than from his regular job.
“This was the time I decided to resign from my government job and went full-time with my real estate selling. In selling, once you tap the potential buyers, there is always that opportunity to earn big. There is always that possibility of earning unlimited income,” Dominguez explained of his bold move.
Dominguez is so happy to have accumulated 22 rewarding years of experience in the real estate selling business.
“I have no regrets. A lot of the good things my family and I are enjoying right now came from this business that I have learned to love and enjoy doing,” he claimed.
“In an opportunity-based job like real estate selling, income can be unlimited because it is dependent on the opportunities captured by the sales agent. The more hardworking an agent is, the more he will earn. In a security-based job like employment, salary is fixed based on what is stated in the employment contract and the corresponding job description,” he explained.
“Undoubtedly, real estate selling is one of the most financially-rewarding endeavors one can engage in, but more than the financial rewards, the opportunity to be of help to many people, especially the homeless, is more fulfilling. As president of Green Circle Realty, I am happy and proud to have been instrumental in helping thousands of people own their homes,” Dominguez further shared.
People think that brokerage makes a lot of money, but it’s not that easy reaching the pinnacle of success. From passing the Licensure Exam given by PRC, to facing difficulties such as:
2.Lack of professionalism,
4. Difficult Buyer-seller relationships
5. unscrupulous Developers who do not pay commissions – this is called “commission-dectomy” where for example the agreed commission was 5% but the broker will have to settle to 3% on a “take it or leave it” with no other option.
One of the most blatant unethical practice being done is advertising properties for sale without authority.
Dr. Kirby Salvador -a successful real estate broker- stated her experience “I have personally encountered a lot of offers from co-brokers who have No Authority to Sell and works with a group of all colorum sales agents. Worst of all was this brokers, will post pictures of properties of sellers on Facebook without permission and Authority to Sell. I called his attention, and his response to me was he is not aware that one should have an Authority to sell, before offering to clients. Shocking isn’t it? He wasted 20k for his CPE review but did not learn the need for an Authority to Sell.
Another issue and concern by real estate brokers today is the price war of condominium selling has started because of over supply, and therefore, competition is now very stiff. The unethical practice of offering rebate is commonly done. We expect competitors to start cutting down on their prices by using “creative financing schemes” or ready to match a competitors price, terms and conditions.
Another unethical practice commonly done by unprofessional brokers is to go direct to a seller or to a buyer even if they gathered the information from other brokers. This is called the “torpedo”. Buyers and sellers sometimes agree to cut off the broker in order to save on commission expenses that is why I recommend never to accept a net sale listing.
Seller or buyer “blackmails” the broker and request the broker or sales person to pay part or cover the cost of sales such as taxes, the condominium dues, utility bills, attorney’s fees, and other miscellaneous expenses or “grease” money.
There are also unlicensed real estate practitioners who sell, transfer, mediate, facilitate of real estate properties which is strictly prohibited by the law under Section 29 of the RA 9646 or Colorum Acts otherwise known as Real Estate Service Act of 2009. It is shocking to see that even foreigners are acting as colorums taking advantage of selling or buying from their countrymen. This is predominantly done by Koreans, Chinese nationals, and other foreign groups.
Our problem at the Professional Regulatory Board of Real Estate Practice is not to having enough police power. What we need is to police our own ranks, implement the National Code of Ethics and that the initiative of implementing the law must come from the real estate practitioners having gathered enough material evidences so that colorums may be prosecuted in the proper courts.
My advice for real estate brokers is to remain “focus” to achieve a quantum leap for 2014.
The acronym focus could mean as follows:
F- Focus in carrying too many listings, projects, and other extra curricular activities.
O- be organized. Make best use of time, your most important resource. Therefore, budget your time well by making a daily time schedule.
C- Commitment or being diligent in work, have a passion in what we do. Build up a good name and prestige
U- Utilization of resources and unity of life meaning what we say, we do and believe in what we do.
S- Spirit of Service, smile, build good relationships, be happy in serving others, this is the very essence of our profession, being able to help the clients and give their needs.
There is still so much to share, experiences that I would like to write about but we don’t have enough space or time. However, I will be more than happy to answer your individual queries. Kindly send me your issues or concerns at firstname.lastname@example.org. Be patient if I cannot answer immediately but rest assured I will. I wish you all the best of success and a prosperous new year.