| |November 20169CIOReviewWhere the Virtual Approach Falls Short On the surface, this approach to selling and buying real estate seems novel and even logical. What works against it is the manner in which the real estate market actually functions in India. A house is a brick-and-mortar structure that sells at a very high cost. In fact, a home is by far the most cost-intensive investment that most Indians will ever make in their lifetime. As such, a property purchase commitment is not one they will make with the same confidence and detachment with which they would buy a smaller commodity online. Secondly, buying a home is all about forming a personal bond with the chosen property. The home-buying process invariably involves personal inspection of a number of options at close quarters. In making the final choice at the end of a prolonged selection process, the buyer effectively accords it the highest distinction among all other personally inspected options. The likelihood of a home buyer making such a decision based solely on virtual information is on par with that of an art connoisseur buying a Rembrandt in an online auction. The `Real' Facts Developer's PerspectiveFrom the viewpoint of a developer, selling a property directly to a buyer via the Internet is a means to cut on the costs of brokers and channel partners, marketing collaterals and OOH advertising, and also the cost of maintaining a large sales force. However, this perception does not acknowledge certain immutable market facts: 1. Brokers and channel partners do business by virtue of their market knowledge, ability to convince buyer and many other ways in which they can connect the various dots along the bridge between developers and potential buyers. Importantly, they also provide buyers with the assurance that the legal aspects of property purchase will be taken care of2. A strong sales force is at all times required to transform direct inquiries into purchase decisions3. OOH advertising and attractive marketing collaterals not only speak for the project, but also for the strength of the developer's brand and market standing.Broker's PerspectiveFrom a broker's perspective, the Internet is not a threat but a helpful resource. While a broker will be very familiar with his area of operation and also have valuable personal contacts, the Internet can make these bonds even stronger. With emails, a broker can stay in constant touch with his clients, provide them with regular updates about projects and deals, and complete the paperwork involved in property purchase. The consensus among real estate brokers is that the Internet is an unmitigated blessing, and no threat at all to their business. Times are changing, and the way the real estate business functions will also change. However, certain ground rules that guide how real estate is sold and bought will not change. Real estate is a people business across its entire spectrum. Just as social media cannot replace a healthy social life but certainly aid it, the Internet can never become a standalone real estate business solution - but is certainly a valuable adjunct to it. The consensus among real estate brokers is that the Internet is an unmitigated blessing, and no threat at all to their business
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