{"id":1103,"date":"2018-03-14T10:59:08","date_gmt":"2018-03-14T10:59:08","guid":{"rendered":"https:\/\/www.mortgagefinder.ae\/blog\/?p=1103"},"modified":"2025-05-28T13:49:49","modified_gmt":"2025-05-28T13:49:49","slug":"why-you-need-a-real-estate-professional-on-your-side","status":"publish","type":"post","link":"https:\/\/www.mortgagefinder.ae\/blog\/why-you-need-a-real-estate-professional-on-your-side\/","title":{"rendered":"Why You Need a Real Estate Professional on Your Side"},"content":{"rendered":"

Nine out of 10 people said the number one reason they use a real estate agent is to help them negotiate price, according to a consumer survey published in Propertyfinder Trends.<\/strong><\/p>\n

 <\/p>\n

Although the Real Estate Regulatory Authority (RERA) in Dubai has not set a standard percentage for commission that can be charged by agents, the market practice is 2 per cent on the total sale amount; often paid only by the buyer.<\/p>\n

 <\/p>\n

Expecting an agent to earn their commission from the buyer is a mistake many sellers make in this part of the world. If it\u2019s the buyer that\u2019s paying their commission, it\u2019s the buyer they\u2019re working for. If you\u2019re a seller, you want them working for you.<\/p><\/blockquote>\n

 <\/p>\n

Real estate agents across the world often have a bad rep, and many deservedly so. Barriers to entry are low and there are those who shouldn\u2019t be in the business, but there are truly excellent agents out there who live and breathe real estate, who are on 24\/7. These agents are driven, passionate, and inspiring individuals: they know how to qualify a buyer, how to play off one against another, how to create urgency, when to push hard, and when to hold back.<\/p>\n

 <\/p>\n

\"\"<\/a><\/p>\n

 <\/p>\n

Good agents are highly specialised in a single community, or sometimes a single building. They know the owners, know the investors, and they have personal relationships with a database of previous and prospective buyers and tenants. They set calendar reminders to send their well wishes on birthdays, anniversaries, Eid and Christmas.<\/p>\n

 <\/p>\n

They know which properties transacted when and at what price. Good agents know the difference between a Type E and a Type F and which ones are easier to sell, are easier to rent, and how long they\u2019ll sit on the market at what price. They will be able to say, If you want to sell it within four weeks, this is the price you need to list at.<\/p>\n

 <\/p>\n

This skill set takes years of training and experience, and if you\u2019re selling your most valuable asset, you want them in your corner. Not on the other side.<\/p>\n

 <\/p>\n

Two percent commission on AED 2.5 million property (AED 50,000) may sound like a lot, but how often do you sell or buy a property? If you come up against someone who does this day in, day out, 365 days a year, who\u2019s going have the advantage? Here\u2019s a hint: not you.<\/p>\n

 <\/p>\n

Peer to peer sites give consumers the ability to transact all types of goods, big and small. Fine if you\u2019re selling those old bar stools your wife hates, but for larger transactions, these sites have been fertile ground for scammers.<\/p>\n

 <\/p>\n

Personally, I\u2019m dumbfounded by the refusal of some vendors to pay a professional to sell their property. If you were charged with murder would you hire a lawyer or would you think to yourself \u201cthe prosecution has a lawyer so I don\u2019t need one. I\u2019ll just let their lawyer negotiate the terms\u201d? If you needed open heart surgery would you hold a mirror in one hand and scalpel in the other? Do you ever service your own car?<\/p>\n

 <\/p>\n

While buying and selling real estate is not usually a matter of life and death, few would argue that the stakes are not high. And scrimping to save costs is a false economy and will ultimately be counterproductive.<\/p>\n

 <\/p>\n

Okay, but is 2 per cent commission reasonable?<\/strong><\/p>\n

Purplebricks, a flat-fee, online real estate brokerage that operates in the UK, Australia and now the US, has surged in popularity in recent years. Sellers pay a flat fee (GBP 849 to 1,119 in the UK) to be represented by an agent, instead of paying commission on the sale price.<\/p>\n

 <\/p>\n

The fee is paid either once the property is sold or after ten months, whichever comes first.<\/p>\n

 <\/p>\n

Analysts have claimed that around half of Purplebricks customers end up paying the fee after ten months, before the property is sold. Purplebricks disputes this, saying the figure is around 12 per cent. And while they don\u2019t publish details of their transactions, they do admit their figures do not take into account sellers who withdraw their listing.<\/p>\n

 <\/p>\n

If you\u2019re selling low end generic property in high transparency markets, where transaction data going back decades (and centuries) exists and where viable Automated Valuation Models (AVMs) are prevalent, some may ask if it\u2019s worth it to hire an agent and if paying 2 per cent (or more) is reasonable. In my view it certainly is. If not for the time and convenience but even in such markets, good agents will always get you more than they cost.<\/p>\n

 <\/p>\n

Purplebricks\u2019 share price experienced phenomenal growth from December 2016 to July 2017, increasing by almost 400 per cent. And although it\u2019s since lost 40 per cent, it\u2019s caused some disruption in the UK market in particular.<\/p>\n

 <\/p>\n

It\u2019s interesting to note that of the 17,638 listings on their UK site, barely 1per cent are priced above GBP 1 million, while 50 per cent are priced below GBP 250,000, which is counterintuitive. This service seems more popular with sellers with low priced properties who at best will receive minimal benefit from its flat fee structure. Clearly, those with more valuable assets are opting to use and pay professional agents.<\/p>\n

 <\/p>\n

Take from that what you will.<\/h3>\n

The propertyfinder.ae \u2018Find Agent\u2019 section showcases more than 3,000 verified UAE real estate agents complete with their transaction history. Searchable by service offered, areas of expertise, nationality, and languages spoken, it is by far the largest and best database of professional real estate agents in the region.<\/p>\n

Find one that will look out for your interests.<\/p>\n

________________________________________________________________________________________________<\/p>\n

Written by Lukman Hajje \u2013 CCO Propertyfinder Group.<\/p>\n","protected":false},"excerpt":{"rendered":"

Nine out of 10 people said the number one reason they use a real estate agent is to help them negotiate price, according to a consumer survey published in Propertyfinder Trends.   Although the Real Estate Regulatory Authority (RERA) in Dubai has not set a standard percentage for commission that can be charged by agents, […]<\/p>\n","protected":false},"author":1,"featured_media":1112,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[3,2],"tags":[],"yoast_head":"\nWhy You Need a Real Estate Professional on Your Side<\/title>\n<meta name=\"description\" content=\"Expecting an agent to earn their commission from the buyer is a mistake many sellers make in this part of the world. If it\u2019s the buyer that\u2019s paying their commission, it\u2019s the buyer they\u2019re working for. 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