S
Simon Mc
New Member
Having been a veteran of the Dubai property market for some 15yrs I have noted with interest the 'techniques' applied by Real Estate Brokers and Agents. They have gone from out and out commission chasing...to out and out commission chasing at all costs...to the detriment of the client. I would suggest only 10-20% of Agents 'do the right thing'.
Yes, Brokers & Agents need to make a living but there is something fundamentally wrong with the Dubai 'advisory' side of the property market.
The Dubai Real Estate Regulatory Authority (RERA) ruled that an Owner of a property must sign marketing agreements with Agents and limit their agreements to 3 Brokerages. This is to stop Owners wasting the markets time by listing with 10+ Brokerages. Good idea you would think. However, one twist is that If an Agent can get an Exclusive Marketing Agreement signed by the unwitting Owner, the Owner can not place their properties elsewhere. They are locked in.
The twist upon the twist is that the holder of the Exclusive Marketing Agreement gets their FULL commission on the property, if sold, whether they Sell it or not. Centre stage rushes the lazy, duping unprofessional real estate agent(s) (and there are many) who simply trawl the market, whether they have any interest to market a clients property or not...to try to get them to sign them up to 3mth exclusive marketing agreements. Without any marketing effort, provided the property is sold, they get paid. It seems Its quite a big incentive for some.
Below is a graphic showing some interesting stat's. To me, it looks like an industry in need of a serious 'cull'...either of agents or licensed offices
Yes, Brokers & Agents need to make a living but there is something fundamentally wrong with the Dubai 'advisory' side of the property market.
The Dubai Real Estate Regulatory Authority (RERA) ruled that an Owner of a property must sign marketing agreements with Agents and limit their agreements to 3 Brokerages. This is to stop Owners wasting the markets time by listing with 10+ Brokerages. Good idea you would think. However, one twist is that If an Agent can get an Exclusive Marketing Agreement signed by the unwitting Owner, the Owner can not place their properties elsewhere. They are locked in.
The twist upon the twist is that the holder of the Exclusive Marketing Agreement gets their FULL commission on the property, if sold, whether they Sell it or not. Centre stage rushes the lazy, duping unprofessional real estate agent(s) (and there are many) who simply trawl the market, whether they have any interest to market a clients property or not...to try to get them to sign them up to 3mth exclusive marketing agreements. Without any marketing effort, provided the property is sold, they get paid. It seems Its quite a big incentive for some.
Below is a graphic showing some interesting stat's. To me, it looks like an industry in need of a serious 'cull'...either of agents or licensed offices
