When to Use Real Estate Brokers for a Project to Increase Sales Efficiency

Real estate brokers for a project is a key issue in current real estate business operations. Developers must determine the precise moment to coordinate with trading floors to optimize cash flow and accurately reach target customers. In the following article, Long Phan Consulting Company provides detailed information on utilizing real estate brokers for a project to boost sales efficiency.

What is a real estate broker?

The concept of real estate brokerage is clearly defined in Vietnam’s current legal system. This is a conditional service business aimed at promoting the circulation of real estate goods on the market.

Under Clause 2, Article 3 of the 2023 Law on Real Estate Business, real estate brokerage is a form of real estate service business. Furthermore, Clause 11, Article 3 explains that real estate brokerage is acting as an intermediary for parties in buying, selling, transferring, leasing, subleasing, or lease-purchasing real estate. The broker performing this act does not directly participate in the contract as a buyer or seller but plays a transaction coordinating role.

The scope of real estate brokers for a project activities is specified in Article 62 of the 2023 Law on Real Estate Business, including:

• Searching for partners meeting the client’s conditions to participate in negotiations and sign contracts.
• Acting as an authorized representative to execute tasks related to buying, selling, transferring, leasing, subleasing, or lease-purchasing procedures.
• Providing information and assisting parties in negotiating and signing contracts.

>>>See more: Professional Real Estate Brokerage Service Benefits

Conditions for conducting real estate brokerage services

To practice real estate brokers for a project, one must meet specific practicing conditions. Specifically, under Article 61 of the 2023 Law on Real Estate Business and Article 18 of Decree 96/2024/ND-CP:

For Organizations and Individuals Conducting Brokerage Business 

Organizations and individuals conducting real estate services must establish an enterprise under enterprise laws or establish a cooperative/union of cooperatives under cooperative laws, and must meet the following conditions:

• Must possess operational regulations for real estate brokerage.
• Must possess physical and technical facilities matching the enterprise’s operational scope. Physical facilities refer to a stable operating location/headquarters valid for over 12 months. Technical facilities are the machinery and equipment systems serving operations.
• Must have at least 01 individuals holding a practicing certificate.
• Before operating, the enterprise must send its information to the provincial real estate business management agency where it is established to be published on the housing and real estate market information system.

For Individuals Practicing Real Estate Brokerage

• Must possess a practicing certificate.
• Must practice within a real estate trading floor enterprise or a real estate brokerage service enterprise.

Obligations of businesses and individuals when engaging in real estate brokerage services

Under Clause 1, Article 65 of the 2023 Law on Real Estate Business, brokerage enterprises must:

• Provide full, truthful dossiers and information about the brokered real estate and bear responsibility for the info provided.
• Organize annual training and refresher courses to enhance the brokerage knowledge of their staff.
• Fulfill tax obligations to the State.
• Compensate for damages caused by their own faults.
• Execute reporting regimes as prescribed by law and submit to inspection by competent state agencies.
• Fulfill other obligations per the contract.

Regarding individuals, practicing brokers must execute obligations under Clause 2, Article 65, which similarly include providing truthful information, fulfilling tax obligations, compensating for damages, adhering to their employing enterprise’s regulations, and participating in annual training.

When should you use a real estate brokers for a project to increase sales effectiveness?

Determining when to use real estate brokers for a project directly dictates the capital recovery speed and the developer’s ability to capture market share. Enterprises must carefully analyze variables regarding market cycles, internal operational capacity, and the specific nature of the real estate product. Below are strategic moments when the participation of professional brokerage units becomes mandatory to optimize revenue.

The project’s sales launch phase needs to accelerate

Currently, many companies choose to use real estate brokers for a project to increase sales effectiveness during the initial launch phase. The launch phase is a golden opportunity to create market buzz and attract a large number of interested customers. Utilizing a wide network of brokers helps disseminate project information to thousands of investors in the shortest possible time.

Affiliate platforms have access to a pool of potential customers, which shortens the initial search and consultation process. This ensures that the shopping cart fill rate meets targets, paving the way for subsequent price increases.

When the developer lacks a professional sales system

Currently, many companies choose to use real estate brokers for a project during the initial launch phase. The launch is the golden timeframe to create market momentum and attract a massive volume of interested clients. Using an extensive brokerage network helps broadcast project information to thousands of investors in the shortest time. Affiliated trading floors possess ready-made potential client bases, shortening the initial search and consulting process. This ensures the cart-fill rate hits targets, creating momentum for subsequent price-increase phases.

When a project needs to expand its market and reach new customers

To accelerate consumption, developers utilize real estate brokers for a project to increase sales efficiency. Building and maintaining an internal sales team consumes massive operational, managerial, and training costs. When an enterprise focuses on its core strength of construction and development, outsourcing brokerage services is the optimal solution. Professional brokerage units possess effective closing and objection-handling skills thanks to practical experience. You can leverage the existing infrastructure of trading floors to deploy sales without heavy investments in an internal apparatus.

When the market is highly competitive

Each trading floor usually holds strengths in specific geographic areas or client segments (like apartments, land plots, or resort properties). When a developer wants to penetrate provincial markets or reach high-net-worth individuals, brokers are an indispensable bridge. Real estate brokers for a project possess a deep understanding of local consumption cultures and investment habits. The presence of distribution agents helps the project reach the exact target audience with the most appropriate message.

When it’s necessary to optimize costs and sales efficiency

Amidst abundant supply, competition between projects in the same segment becomes fierce. Using brokers is considered a suitable solution for large-scale projects. Real estate brokers act as persuaders by comparing the project’s competitive advantages. They can grasp competitor psychology and flexibly adjust consulting tactics for specific situations. The proactiveness of the brokerage team helps maintain the project’s heat even when the market shows signs of saturation.

>>>See more: Rights and Obligations of Real Estate Brokerage Service Companies

When you need to deal with excess inventory or slow selling products

Developers only pay brokerage commissions when a transaction is successfully established as committed in the distribution contract. This model converts fixed costs into variable costs, reducing financial pressure during project deployment. Trading floors also bear their own marketing, advertising, and sales event costs. This is a smart financial risk management plan, ensuring every dollar spent brings actual revenue.

Benefits of using a real estate brokers for a project

The benefits of partnering with professional distribution units highlight why they are strategic partners optimizing developer resources.

• Exploiting Available Client Data: Brokers possess massive client databases categorized by investment needs and financial capacity, enabling swift and accurate targeting.
• Providing In-Depth Market Reports: Professional units have dedicated research departments providing data on price fluctuations and purchasing trends to adjust sales policies.
• Supporting Legal and Financial Procedures: Brokerage teams directly guide clients through bank loan dossiers and administrative procedures, reducing the load on the developer’s legal department.
• Creating Multi-Channel Media Effects: Extensive networks create strong resonance on digital platforms, maximizing brand coverage and reputation.
• Enhancing Client Experience: Professional customer care increases conversion rates and gathers practical feedback to promptly fix product weaknesses.
• Optimizing Costs and Personnel: Outsourcing allows enterprises to flexibly scale their sales force according to the project phase without maintaining a bloated internal team.

>>>See more: Conditions for Real Estate Brokerage Business (Effective from August 1, 2024)

How to use real estate brokers effectively and legally

Establishing a professional cooperation method thoroughly solves how to utilize brokers amidst market fluctuations. Developers must build a strict management framework combining economic benefits with legal responsibilities.

• Establishing Standard Brokerage Service Contracts: Developers must sign agreements detailing the scope of work, duration, service fees, and damage compensation responsibilities under the Law on Real Estate Business.
• Selecting Lawful Distribution Units: Only partner with trading floors holding valid business licenses and staff possessing competent agency-issued practicing certificates.
• Controlling Information and Consulting Activities: Clearly define the document lists and project information standards permitted for clients to prevent false promises and legal risks.
• Building Transparent Financial Mechanisms: Design clear commission, reward/penalty systems, and committed payment schedules to stimulate distribution agents.
• Providing Professional Sales Toolkits: Ensure brokers have full access to legal dossiers, Sales Kits, and current promotional policies.
• Conducting Periodic Training and Coordination: Organize sessions to update floor staff on product features and situational handling skills.

Real estate brokerage consulting services at Long Phan Consulting Company

At Long Phan Consulting Company, we provide comprehensive legal and strategic solutions to help you optimize project brokerage operations. We structure our professional support into the following key area:

• Drafting and reviewing real estate brokerage service contracts ensures a thorough understanding of rights and obligations.
• Providing legal advice to businesses on establishing real estate exchanges in accordance with regulations.
• Verify the legality of the professional licenses of affiliated brokerage firms.
• Establish operating regulations and coordination procedures between the investor and distribution agents.
• Representing clients in negotiating commercial terms in exclusive or non-exclusive distribution agreements.

Some frequently asked questions about when to use real estate brokers for a project to increase sales effectiveness

The following, Long Phan Consulting Company some frequently asked questions regarding the use of real estate brokers for a project to increase sales effectiveness. We invite interested clients to consult them:

If a business only has one employee with a brokerage license, is it eligible to operate?

Yes, according to point c, clause 2, Article 61 of the 2023 Law on Real Estate Business, a real estate brokerage service business only needs to have at least one individual with a real estate brokerage license to meet the professional personnel requirements for operation.

Are individuals still allowed to practice as independent brokers as before?

No, according to Clause 2, Article 61 of the 2023 Law on Real Estate Business, individuals practicing real estate brokerage are required to practice within a real estate exchange service business or a brokerage service business; they are no longer allowed to practice completely independently.

Is the developer liable if a real estate agent provides false information to a client?

It is possible that if the investor does not control the content provided, however, according to Clause 1, Article 65 of the 2023 Law on Real Estate Business, the brokerage firm has the obligation to provide truthful information and must compensate for damages caused by its own fault. Therefore, the investor needs to strictly stipulate this responsibility in the brokerage contract.

What criteria are used to calculate brokerage fees in order to comply with the law?

Real estate brokerage fees do not depend on the price of the brokered transaction but are based on the agreement between the parties in the contract, as specifically stipulated in Article 63 of the 2023 Law on Real Estate Business.

Is it mandatory for real estate exchanges to publicly list project information?

Yes, according to point b, clause 1, Article 55 of the 2023 Law on Real Estate Business, the real estate exchange has the obligation to provide documents and information about the real estate and is responsible for the accuracy of the information provided to customers.

Is it mandatory for a real estate brokerage contract to be notarized?

According to Clause 3, Article 44 of the 2023 Law on Real Estate Business, it is not mandatory for real estate service contracts (including brokerage contracts) to be agreed upon by the parties and to be in writing; notarization or certification is at the voluntary agreement of the parties.

Conclusion

Determining when to use real estate brokers for a project to increase sales efficiency is a strategic question demanding market understanding and legal knowledge. Long Phan Consulting Company is committed to accompanying you in building a safe and sustainable real estate distribution system.

Should you have any legal procedure inquiries or require in-depth consultation, please contact Hotline 1900636389 for immediate support.