The main difference between a real estate agency and a developer is that the former acts as an intermediary between buyers and sellers of existing properties. While the primary function of a developer is to acquire land, plan, finance, and manage construction projects.
There are other aspects that can be used to establish differences between this type of business and how real estate project development company We will explain them to you in detail.
1. Its main activities
The developers manage the activities and investment for the acquisition of land and to pay for costs associated with the construction, infrastructure, marketing and development management of projects.
On the other hand, real estate agencies focus on promoting existing properties for rental or sale purposes, so they focus more on marketing, sales, and advertising activities.
2. How they make money
Developers' profits come from the sale and rental of properties.
Besides, Real estate agencies earn their income through commissions for the real estate transactions they facilitate.These commissions are part of the sale or rental price of a property and are earned upon successful closing of a transaction.
3. The stage they focus on
Developers are focused on all stages of real estate project development.From planning to management of the finished property.
This includes tasks such as detailed planning, architectural design, obtaining permits and authorizations, construction of the properties, and marketing and sales of the units.
However, A real estate agency has nothing to do with these dutiesInstead, its focus is on acting as an intermediary between those who want to buy, sell, or rent existing properties.
That is, they are more focused on the marketing stage.
Additionally, they focus on other tasks such as facilitating the transaction process, negotiating contracts, coordinating inspections, and providing advice on the real estate market.
4. How they manage properties
Developers can handle rental management, maintenance of common facilities, customer service and other operational aspects..
These entities typically have a long-term vision for managing the properties in their projects.
This is another difference from real estate agencies that do not manage properties long-term, as once a sale or rental is closed, the property management is typically left in the hands of the property owners.
5. The market they serve
Real estate agencies typically serve different markets rather than specializing in a particular niche.. Therefore, they offer a wide range of properties for different buyers and sellers.
While developers They choose to specialize in specific niches within the market, such as senior housing, sustainable developments or luxury projects.
This allows them to focus on meeting the particular needs of a demographic or creating properties that fit a particular market.
Real estate agencies and developers are not the same, but they can work together.
Real estate agencies and developers are entities that can be confused, but they fulfill different roles in the real estate market.
Now that you know some of the most common differences between real estate agencies and developers, you can choose which one to work with. At Proyectos 253, we help you effectively plan, manage, and market your real estate development project.
