The Realtors in Colombia: An Unregulated Landscape
by: Daniel Luque
published: 2024-07-09

In Colombia, the real estate profession stands unregulated, an open field where anyone can claim the title of a realtor. This lack of regulation invites a spectrum of practitioners—both the competent and the incompetent. As with any profession, the scarcity of truly exceptional realtors amplifies the impact of those merely fishing for commissions.

A proficient realtor must possess a suite of soft skills: communication, empathy, transparency, and unwavering ethics. Yet, these attributes alone are insufficient. A realtor must also be armed with technical knowledge to guide clients effectively through the complexities of buying or selling property.

Mastery of Market Dynamics

An outstanding realtor should be well-versed in the market dynamics of their operating area. This includes knowing the average price per square meter, identifying which sectors command higher prices and understanding the reasons behind these variations. They should keep abreast of ongoing and upcoming projects, and have a deep understanding of the local area’s advantages and disadvantages, allowing them to compare it effectively with other regions.

Architectural and Construction Insight

Beyond market knowledge, a realtor should have a foundational grasp of architecture and construction. Recognizing the value of good design, assessing space optimization, and understanding material costs—especially premium ones—are essential. A basic knowledge of common property fixes, such as kitchen and bathroom renovations, painting, and masonry, can significantly enhance a realtor’s value.

Economic Literacy

Economic literacy is another critical area. A realtor should understand concepts like supply and demand, inflation, interest rates, opportunity costs, and amortization. These insights allow them to provide sound financial advice within the economic landscape effectively.

Crucially, a realtor must be well-versed in the procedural aspects of real estate transactions. This includes understanding the power of attorney, the implications of a Letter of Intent and Promise of Sale, taxes, delivery logistics, notary fees, and closing costs. Mastery of these areas ensures that the realtor can manage transactions smoothly and transparently.

The Pitfalls of the Unregulated Market

In contrast, many realtors focus on amassing vast, unfiltered portfolios, showcasing properties without discernment. Their sales pitches often exaggerate benefits or flaws, employing high-pressure tactics by fabricating competition to rush clients into decisions. This approach neglects critical transaction details like GMF (4x1000 tax), capital gains, transaction timing, and international transfer documentation.

The drive for commissions often leads to an abrupt end in communication post-deal, leaving clients stranded. It’s not uncommon for realtors, once highly attentive and persistent, to vanish after securing their commission. This sudden disappearance can be jarring and disheartening for clients who have grown to trust them.

Closing the Deal: The Final Steps

Even after the deed is signed, essential tasks remain. These include updating utility bills, paying registry rights, and registering the deed. Additionally, updating the cadastral office on the predial tax and maintaining communication with both parties for any unforeseen issues are crucial steps in ensuring a seamless transaction.

Conclusion

In Colombia’s unregulated real estate market, the challenge lies in distinguishing the proficient realtors from the opportunists. A good realtor combines soft skills with technical knowledge, market insight, architectural and construction understanding, economic literacy, and procedural expertise. As the market stands, it is incumbent upon clients to seek out these qualities, ensuring their real estate journey is guided by professionalism and integrity.

Looking for a good, professional, and reliable realtor to help you get your dream home? WhatsApp us