Should house hunters go to an un­der­writer or a bro­ker?

HT Estates - - FRONT PAGE -

Nis hat Khan, an in­vestor, booked two apart­ments in Gur­gaon through a bro­ker in 2012. While do­ing so he had a choice be­tween go­ing through an un­der­writer and a bro­ker. He tells us why he chose the lat­ter.

I pre­ferred a bro­ker be­cause he promised me a cer­tain com­mis­sion. In this case, it was 2%. This means that if the bro­ker him­self got a 3% com­mis­sion from the de­vel­oper, he promised to give 2% as com­mis­sion to me. I chose to go through the broking route be­cause it helped me main­tain cash flows in the short term.

Also, if you are on good terms with your bro­ker he might even help you sell your apart­ment once the project is for­mally launched at a higher price or af­ter some time when prices ap­pre­ci­ate.

Had I booked a unit with an un­der­writer, I would have re­ceived a good base rate as the ben­e­fit of bulk book­ings (economies of scale) would have been passed on to me. I would, how­ever, have en­joyed this ben­e­fit over a pe­riod of time and not in the short term.

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