There are quite a few different terms that in one way or another designate professional activities in the field of real estate sales. Let's figure it out once and for all, in terms they mean and what is the difference in the provision of services.
Let's take a closer look at the International and Russian real estate markets, but we will especially focus on the differences between real estate companies and real estate agencies, as opposed to an international business broker in the field of agricultural real estate.
1. Real estate agencies and real estate companies specialize in several main areas: the sale of urban apartments, the sale of houses in the city, the sale of suburban real estate (summer cottages, houses in the countryside, houses in suburban elite villages, land plots for the construction of city houses, country houses and even land industry). The second block for real estate agencies and realtors is the renting of apartments, houses, office space. There are agencies specializing in the sale of office space, lease of warehouse property.
2. Business brokers specialize in selling ready-made businesses in any industry (office buildings, old mansions in the city, business centers, factories, warehouse and logistics centers, shopping centers, restaurants, cafes, shops, and even elevators and livestock farms).
What is the main problem of companies that are not specialized in the agricultural business?
- They do not have land and construction lawyers on the staff of their company. Accordingly, they cannot correctly assess the legal risks associated with illegal buildings and the category and type of permitted use of the land plot. Another not unimportant moment of their lack of competence is not knowledge in the field of planning projects, general plans for the development of the territory or the development of federal and local roads. And for the buyer, these are additional risks, the state can seizure by buying out a certain part of the land plot for the development of road infrastructure or for other infrastructure development plans. Yes, private property involves the purchase of this land plot, but you are deprived of developing your enterprise in this region.
- Realtors and real estate agencies do not understand anything about soils (black soil, chestnut or forest soils), they do not know what the yield is on this or that land plot. They will not be able to provide you with a service in agricultural consulting. Their task is to quickly sell the land and forget about the client.
- Real estate agencies and realtors in the company's staff do not have appraisers who can realistically assess an agricultural asset, they follow the lead of sellers who in 70% of cases overstate the price by 1.5 times.
- A real estate agency or realtor aims to quickly sell an object. And who will help a foreign citizen in obtaining a work permit, searching for employees, searching for agricultural equipment or animals, where a foreign citizen can get a service for permission to build or reconstruct a livestock farm and put it into operation? Land and construction lawyers do this too.
- But the most important point for a foreign citizen is the correct registration of a land plot, this is a very complex legal technology that real estate agencies or realtors simply do not possess. Therefore, to support such transactions with foreign citizens, they involve our land legal company "GeoBuro".
This is the general name for professional real estate agents. Anyone who is involved in renting, buying and selling houses, apartments, rooms, commercial premises can call himself a real estate agent. Regardless of the period of work, experience and membership in professional organizations.
For example - in the US market the term "real estate agent" corresponds to "real estate agent".
Some US real estate agents like to add the word "licensed" to emphasize the fact that they have a valid license. Indeed, in the United States, the activity of a real estate agent is subject to compulsory licensing. And in Russia real estate agencies are not licensed, and you should know that. In the USA, you need to go through some training, pass exams and get the coveted license. But obtaining a license is relatively easy, and all agents in the United States have one. The only exception is when the agent says he is licensed in a particular state. "Licensed in the state of New York" does not mean that the agent is so cool that he even managed to get a license, but only indicates the territory of the agent's work - it means the right to work only in the state of New York. In Russia, this type of activity is not licensed not at the local not at the Federal level.
The concept of realtor came to the Russian language as an analogue of the word from the English word Realtor. If we talk about the United States, then only a member of the professional organization National Association of Realtors can be called a Realtor. But these subtleties are unknown to the general public, so this short and capacious concept is very often used as a replacement for the longer word - real estate agent. There are guilds of realtors and various associations in Russia, but they do not provide any additional advantages, since the activities of realtors in Russia are not licensed.
There is no direct analogue in Russian, something like “seller” or “salesman”. In conversation, this term is rarely used, but in the US this is officially called the type of initial real estate agent license - “Real Estate Salesperson”. There are no similar companies in Russia, and their activities are also not licensed.
In the US market, a broker can only be called a “Real Estate Salesperson” who has completed additional training, passed exams and obtained a broker license. And most importantly: to obtain a brokerage license, you need to work as an ordinary agent for several years (often two years) and close a certain number of transactions, at least 12 pieces. Accordingly, the “broker” says that he is an experienced agent with a considerable number of transactions in his track record. By the way, unlike the “Real Estate Salesperson” agent, the broker has the opportunity to work for himself and open his own company, and then the term “Real Estate Broker” is used, or continue to work for a large company, and then the term “Associate Real Estate Broker” is used ... In Russia, there is no concept of a broker in the real estate market, they are on stock exchanges. But in Russia there is an analogue of such activities, as a rule, it is a company that specializes in the sale of not just real estate objects, but ready-made business objects, which require quite serious knowledge and competencies in the field of business, accounting, knowledge of jurisprudence. Such companies are called Business Brokers for the sale of a ready-made business if they operate only in the Russian market. Or International Business Brokers who specialize mainly in working with foreign companies or foreign citizens.
- Land and Legal Center (legal support for Russians and foreign citizens in the field of land, water, forestry and town planning codes of Russia).
- Agrarian realtor - who specializes in the sale of agricultural facilities for Russian citizens.
- International agricultural business broker - which specializes in the sale of agricultural enterprises, land plots, agricultural consulting and the search for qualified personnel in the field of agriculture.