Real estate advisors are CLIENTS DRIVEN, not sales driven. They have in-depth knowledge of the commercial and investment segment not only for Singapore but globally. As a result, they know just which property stands in a uniquely favorable position for you to maximize your returns.
In a snapshot.
- Who hires an advisor vs a broker?
- What is that one UNIQUE QUALITY OF ADVISORS that brokers don’t have?
- To what extent does an advisor’s professional service differ from a broker’s?
- What are the top 5 things that you will get in an advisor?
- How do I cater to my clients in the capacity of an advisor?
- One case study of a Raw to Polished Diamond – Loft Nathan Retails Shop
- Want to hire an advisor yourself?
- Looking to find a raw diamond?
In simple terms, both broker and advisor’s responsibilities may seem similar. Both are hired by a single party. And both receive a commission on closing a transaction.
The difference lies in the details.
Who hires an advisor vs a broker?
An advisor is a paid professional hired by the buyer or investor. They help you to get your desired property in the best terms and conditions. On closing the transaction, they will receive a commission from the hired party.
A broker on the other hand is a matchmaker between the seller and the buyer in exchange for a commission.
Still, sounds similar? Here’s the difference.
An advisor is usually from the buyer’s side. So, they don’t have any self-interest if they can sell the property at a higher or lower price. Their main focus is fulfilling their clients’ needs. And also maximizing their investment.
Brokers on the other hand can be from either buyer’s or seller’s side. If they work on behalf of the seller, they can push you to buy the property at a higher price. Because that means a higher commission cut for him from the seller.
Moreover, brokers can also sometimes act as a seller or buyers. In such cases, they become the principal party. Thus, they are working for themselves when they are negotiating a deal.
So, we can conclude that advisors are in a position where they can be:
- More transparent
- More focused on client’s needs
What is that one UNIQUE QUALITY OF ADVISORS that brokers don’t have?
A blind, inexperienced eye can never identify a diamond in its raw state. Most people may stamp over their own acres of diamond without realizing what they are missing.
An advisor can identify a raw diamond and polish it to make its true worth. They can identify an undervalued property, pick it up, and renovate it to enhance its value.
For commercial usage, they will access the crook and cronies of paper trails to maximize the property’s business use. For rental, they will help with tenant profiling. All in all, they will manage the assets in all forms.
To what extent does an advisor’s professional service differ from a broker’s?
Brokers offer a one time service in buying or selling a property.
Advisors offer lifetime service, stepping to your every need.
- Advisors help you to purchase and revamp properties to turn unidentified properties into valuable gems.
- They help you steer clear of murky water of commercial real estate and stay out of the ugly side.
- An advisor conducts full due diligence of the property. This safeguards your interest against unfavourable legal terms and conditions.
- They act as Property managers to manage property portfolios. Hence, they can cater you from purchase to rental to maintenance of the property.
- They also act as Asset manager with a team that includes lawyers, accountants, corporate secretary and contractors to give you a 360 degree service.
What are the top 5 things that you will get in an advisor?
1. An advisor has a valid realty broker license.
A broker can be anyone who matches a buyer and a seller. But advisors need a valid license to operate. Besides, they often take more competitive courses to amplify their real estate knowledge.
For example, I am certified by the MIT School of Architecture and Planning in Data Science and Real Estate. And I am in the midst of further studying with regards to data science. Pursuing more knowledge on this part has enabled me to interpret raw data to predict property trends ahead of time to better cater to my customers.
I also have a Diploma in Strategic Wealth Management and Charter Wealth Manager (CWM). As I deal with lots of overseas buyers, this helps me to utilize their wealth efficiently.
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2. An advisor needs to have a reputable track record to prove their mettle.
Usually advisors deal with high end clients, often with interest in commercial realty in Singapore. Such clients won’t trust their money with just anyone. So, they need to have an excellent track in acquiring or structuring a portfolio for their clients. This goes on to prove that they are capable of handling high profile clients’ needs.
3. An advisor’s knowledge covers a much wider range than brokers.
Advisors often deal with overseas buyers and ultra high net worths. They are very particular about their needs. So, advisors have to be aware of global trends, the economy, border measures, and visa procedures. Just property knowledge is not enough! For example, I am well versed in China forte and network since I attain many clients from there.
While for brokers, they are mostly bound within the knowledge of properties. They do not need to go high and low like advisors to get their clients what they need. Hence, their range of expertise is limited.
4. An advisor is often your friend besides being a professional.
An advisor is your extended hand whereas a broker seems more like a borrowed hand.
Why I say this is because the broker will stick to your single purpose. They will help you to close a transaction.
But an advisor consults and negotiates with you like a friend. They will not shy away from a comment in the fear that you will walk out of the deal. Because they know what they are doing. And they aim to get the deal best suited for you.
They will educate you, guide you and enrich you with the necessary knowledge. This will help you to make informed decisions on your investment.
5. An advisor is more than just a hired help.
Advisors are not limited to your property transaction needs. If you are planning to move to Singapore, they will help you with the process top to bottom. They have the means to cater to your legal needs, visa needs and wealth management as well.
For example, I often help my clients to diversify their money in a way that they can comfortably settle in Singapore:
- I help allocate their funds for the best investment deals.
- Find a home at the best price with nearby schools and hospitals.
- Help deal with any challenges they face with their properties.
How do I cater to my clients in the capacity of an advisor?
My bread and butter started from being a fitness trainer to managing it to finally treading into real estate. As a fitness trainer, I learned early on that no one client is the same. You have to tailor a customized plan to cater to their needs the way they want. This lesson helped me far in my real estate career. I focus on clients’ needs on a one to one basis to give them the best service.
I often deal with overseas clients with an interest in high end commercial and investment segments. During Covid, some of my foreign clients could not come to Singapore due to border restrictions. Still many of them are dealing with border measures due to Omicron. But I have not standstill. In these 2 years, I helped overseas buyers purchase property in Singapore via online means.
From selling over 50 million worth of properties, my team purchased and renovated the properties on the buyer’s behalf. And today, it has increased in value and rolling returns for the owner.
Know the latest about How reopening borders is paving a booming Singapore property market?
One case study of a Raw to Polished Diamond – Loft Nathan Retails Shop
The shop mentioned was purchased at S$5 million in 2014. Later, it was transacted at a discount of S$3.968 million with a vacant position. At the peak of Covid, in April 2020, we found a good tenant profile, A Gallery of Global Treasure Trove, who is a collector of the finest and most coveted watches worldwide.
The shop is now a state-of-the-art in-house Swiss WOSTEP watchmaker service centre. This tenant profile injected a high-end ambiance to the stretch of shops. Since then, the valuation of the shop has increased by 20%.
Want to hire an advisor yourself?
Ask these 4 key questions.
1. What are the most recent deals the advisor closed which did not collect a single cent?
2. What is the performance of his portfolios acquired for clients?
3. Has he turned any bad appearing properties into profitable ones?
4. Does he have good testimonials from his clients?