RA 9646 compliant restructuring plan for In-House units of developers
[ADVOCACY SERIES] - Now this is the multi-million management idea that I was hinting about and today I will be giving it out for free for the best interest of the Real Estate Sector. This is one of the solution the developer can take if they don't want their in-house people to become classified as real estate practitioners that is supposed to be administered by RA 9646. The solution is to convert the in-house salespersons into Project Representative (PR).
A PR does not sell real estate to buyers and he is not a real estate practitioner. A PR is trained by the developer to become an expert on the technical specification and features of the project. He is trained and managed by a PR Manager.
The main function of the PR is to visit the licensed brokers. His mission is to convince the broker to accept the project into his listing portfolio.
The PR will arrange an appointment to visit the broker or tour the broker to the project site for a briefing. After the briefing the PR will give the broker a Property Folder (PF). A Property Folder contains the Authority to Sell issued by HLURB to the developer, some leaflets, fliers, brochures, CD, price list, site contact person, and the pre-approved Authority to Sell granted by the developer to the broker.
For example in Metro Manila, there are 1,000 active licensed brokers. If the PR Unit wants to visit all these brokers in one week, the developer would need around 200 PRs.
If I am the broker, I would bring along with me three salespersons (under my license) during the project briefing of the PR. My function is just to "appreciate" the project and get an overview about it. You see I am a broker, I could possibly be handling at least 50 projects all over Metro Manila, you don't expect me to be technically knowledgeable about those projects.
It is my salesperson's job to master the features of the project. I will order my two salespersons to specialize in selling the particular project for the next three months. The salesperson would get whatever amount of fliers they need from the PR. I will take care of training them in sales techniques and I will also be the one who will give orders on where will they distribute those fliers.
As a broker, I want the developer to have a PR on the project site to work with my salesperson in the event of a tripping wherein the buyer wants to see the place.
As a broker, I am entitled to the commission for every sale we make and will share it with my salesperson who closed the sale.
I will not be sharing the commission to the PR. The PR gets salaries and wages from the developer.
I took this model from the medical profession. The pharmaceutical companies have medical representatives who visit the doctors. The doctors prescribe the medicine to their patients. There are no pharmaceutical company representatives who prescribe and sell directly to patients. Patients have to transact the prescription with the doctor.
In real estate, buyers must transact directly with the broker or to his salespersons. Buyers must not transact directly with the developer.
By the way, developers should not be selling directly to buyers because as a broker I am not comfortable with it. Brokers can compete with one another but the developer should not compete with me. If I am the Broker, I would post a big note on the door of my office saying that I don't accept project listing wherein developers have in-house agents who compete with me in the open market. Why? Because the idea of a real estate owner competing with an agent is an absurd idea.
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I dedicate this blog to my Facebook friend/s who celebrate their birthday today. Efren Petalcorin, Koji Sedutriv, Krizchelle G. Remollo, Maricel Ogaa, Regil Daruca, Salvie Ann Sedigo