Upon closer look, buyers realize there are only a few genuine sellers’ listings
Why are properties so expensive to buy? Why can’t I sell my property for more? These are the two most common questions agents are being asked at the moment. These, then,beg the question of what is a good representation of the market? To get an understanding of what is actually happening in the market agents need to first question themselves.
Looking at property listing in today’s various property portals, most people can safely assume that,firstly, there are plenty of properties available for buyers, and secondly,that sellers are asking for a lot more than in previous months, which is, of course, quite understandable with the current positive market sentiment.
However, looking more deeply than just covering the mere surface – simply by taking an extra step and finding out how many of these properties are actually available, you come to the stark realization that actually, there is a very limited number of genuine sellers with listings in the market.
The reason for this is that many of the real estate agents in Dubai don’t regularly check with their sellers if their properties are still available. At the same time, property listings are not regularly updated, and agents list properties that are clearly above the market rates.
Sellers that look to the market to get an understanding of how much their property should be marketed come across countless properties listed above current market averages.
Unbeknownst to them, these properties have been listed by inexperienced agents, or agents who are simply playing a numbers game to get more listings at any cost, even if this means creating a false market. The same properties would have also been listed for long periods of time, and are unlikely to sell until the market changes. Without this vital knowledge, seller’s expectations are increasingly moving upwards. On the other hand, you have average buyers who are actively searching to buy a property for their own use or maybe as an investment, but they are, on average, seeing the same property on various portals listed with vague and mostly incorrect descriptions with a wide price range. Aside from these two aspects of listings, there are also many properties that are no longer available and have been sold, in some occasions more than two or even three months before.
Combine these two aspects of day-to-day dealings of agents and you get a very bad formula for buyers’ and sellers’ expectations with an increasing divide between the two.Again, all agents should be looking to themselves for an explanation as they are one of the biggest reasons (as illustrated earlier) why this is happening.Agencies complain the market is moving too quickly, and that there are no genuine sellers at the moment. It is the responsibility of qualified agents to educate sellers (and buyers) on current market rates with evidence of comparable properties. Everybody wants the market to move upward, but at a steady pace with sound advice.
If we, as agents, take greater care in qualifying owners realistically while also educating them as to what is a realistic market rate, we will greatly improve the market and eradicate the challenges we are all facing as agents, sellers, landlords, buyers and tenants. By removing properties that are no longer available from listings, we also eliminate the doubts in buyers minds as there would be no opportunity for them to wonder about properties that are no longer available.
As real estate agents, we should do more to assist in the development of the Dubai property market because we all know that in the end, we will definitely profit from it.
Safura Abas
General Manager, Aston Pearl Real Estate
