“If you don’t adopt disruptive technology, you will be disrupted.”
Brad Inman
A great realtor can be identified by their in-depth understanding of the real estate market. But where does an agent gather the necessary information to build this expertise? Agents can get an extensive understanding of the performance of the real estate market in the UAE with Bayut’s Profolio™, which offers two invaluable Insights tools – Transaction Insights(for Dubai) and Market Insights (for Dubai and Abu Dhabi).
In this article, we will be looking at the highlights from the Bayut Academy workshop ‘Using Market Insights and Transaction Insights as a realtor. Register for the next session to get a comprehensive understanding of Bayut’s Insights and get the chance to engage in various activities and roleplays that can help amplify your learning.
Market Insights
What are Market Insights?
Market Insights is a feature on Profolio™ that displays rental and sales trends in an area, based on the properties advertised on Bayut.
You can head over to Profolio™ by logging into Bayut using your credentials; the email address your leads are sent to and the password of your choice. Once you log into Profolio™, click on the Insights Menu and navigate to the Market section to access all the valuable data available within Market Insights.
Data offered by Market Insights
On the topmost bar of Market Insights, you can filter the results based on your location of interest. You can either look for your speciality area (to view trends there), or leave it blank if you want it to default to Dubai.
The first graph displays rental versus sales trends over the past 3 months. On the right, you can get a snapshot of transaction volume and price trends. You can switch between villas and apartments to view the average rental prices for each.
The table below this further details the rental and sales trends in Dubai based on:
- Highest Traffic
- Earning Potential
- Best Return on Investment (ROI).
Market Insights also has information on Popular Areas as shown below. You can use this to identify which buildings (or sub-communities) receive the most interest and the earning potential for these locations.
Using Market Insights
The primary use of Market Insights is to understand current trends within the market. If you have inventory in the most popular areas, it can maximize your earning potential. You can use this information when deciding which properties in your inventory to allot as your ‘Signature Listing’. A good practice is to use “Signature” and “Hot Listings” in areas with high demand.
Market Insights is especially useful if you are asked about an area outside of your expertise and can prevent you from never saying “I don’t know”. If you are a new agent, it can help you learn about your area.
Knowing the average costs (rent or sale) of various property types can help you while having a conversation with your client.
Pro tip: Promote your listings’ authenticity and get more leads with TruCheck™. This is a guaranteed way to get higher impressions and leads. TruCheck™ + Signature is a powerful combination, which will improve the quality and quantity of your leads.
Something to be mindful of while using Market Insights is that the data is based on averages, leaving room for outliers to exist.
For example, some buildings in an area may be priced lower than the average rent. Hotel apartments are usually listed at prices higher than the average.
Transactions Insights
Transaction Insights is another feature available on Profolio™ as part of the larger Insights section. This offers last sold transactions of property in Dubai, straight from the Dubai Land Department (DLD).
Transaction Insights allows you to search based on the following criteria:
- Location: The geographical area you want to get data on
- Category: The type of property, which includes choices for apartments, villas, townhouses and more
- No of Beds.
Data from Transactions Insights shows what current property values are and is non-partial data from the Dubai Land Department
Creating a Comparative Market Analysis (CMA) with Transactions Insights
‘The right price’ of a property is that which generates at least one reasonable offer within the average number of days it is listed. (Note: average days change based on the area and property type).
Determining the right price of a listing becomes much easier with Transaction Insights. With an analysis of the last sold transactions of property in an area, you can advise both buyers and sellers about the expected outcomes in the market.
The most effective way to display this information to your client is with a Comparative Market Analysis, or CMA. It is an estimate of the value of a home, based on properties sold within the last three to six months in the same area. Commonly used to help sellers find the right price to list their property, it involves comparing last sold transactions in the same area with similar features. This compilation includes both active and recently sold properties.
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The following information needs to be taken into account when creating a CMA:
- The property’s location
- A description of the property (that lists essential features such as the number of bedrooms and bathrooms, floor plans, view that the property offers, etc)
- Area, in square footage, of the property
- Sold price per square feet (of comparative properties)
- Renovations and fixtures.
A good CMA is one that lists out properties that are most similar to that of your clients’ property. This makes finding the right price much easier.
Here’s a sample CMA that can be used while listing your clients’ property:
Improving Conversations using Transactions Insights
How do you use transactions insights to have informed conversations with your clients?
Here’s a typical discussion with a potential seller about listing it online.
Seller: I have a 2-bedroom apartment in King Tower. Can you help?
Agent: Sure, my job is to help you price your property correctly so we can get the highest price in the market will bear and sell it as quickly as possible. What do you think your property is worth?
Seller: I purchased my property 5 years ago for AED 1,950,000. I know that due to the pandemic, the prices may have dropped. I think I can probably get around AED 1,500,000 for it due to its full sea view. I have the 04 unit which is 1181 square feet.
Agent: Well, let me pull out a list of last sold transactions from Profolio™, which is the most accurate measure of what people are willing to pay for your property. Let us take a look at the data.
Using Comparative Market Analysis with Buyers
A comparative market analysis can also be used with potential property buyers. A CMA can give them an estimate of the price range to expect from their properties of interest.
Here’s an example of a conversation. between a potential buyer and seller:
Buyer: I am thinking of buying a home in The Greens. Can you help me?
Agent: Sure, tell me, what specifically you are looking for?
Buyer: I am looking for a 1-bedroom in the old Greens, preferably Al Arta. My cousin says he bought a unit there in late January for AED 420,000
Agent: Wow, that is an extraordinary price. May I ask what your budget is?
Buyer: The same. I won’t go higher than AED 450,000 because I know that this is the current price.
Agent: No problem. How about we go through the last sold transactions of property in Al Arta to see what sales occurred in the last six months.
Buyer: Sure. No agent has offered such a thing to me.
How do you proceed with such a conversation?
After showing them the last sold data, ask them the following question:
Agent: Based on the data, can we increase your budget in order for your offer to compete with other buyers in the market?
If your client says yes: “Let us begin the buying process and find you some options”
If they say no: “Let’s look at other communities that fit your budget”
Lead generation with Transaction Insights
Apart from arranging for listings appointments and buyers appointments with Transactions Insights, you can also use this information to create content for lead generation.
Send out useful emailers on sales trends and area highlights to property seekers. This helps in establishing yourself as an area specialist.
Refer to resources like Bayut’s Building and Area Guides to compile area or building highlights. This information can be great talking points with your clients too!
Start creating emailers and posters using the data from Transaction Insights using our easy-to-use templates for flyers.
To summarise the session:
You can use Market Insights on Profolio™ to:
- Understand the supply and demand as per trends on Bayut
- Generate leads to obtain inventory/stock.
- Build expertise on an area, by understanding the popular buildings, ROI and more.
Use Transaction Insights to:
- Advise buyers and sellers on the ‘right price‘ for a property in their area of interest
- Help sellers to come up with the right listing price
- Assist buyers by offering an estimated price using which they can refine their property search.
Using these Insights from Profolio™, your pathway to becoming an expert real estate agent becomes easier than ever. The secret to a successful real estate agent is definitely being on your toes and being aware of the changing needs of property seekers in the country.
To take a more in-depth look at using Market and Transaction Insights as a real estate agent, join us for an interactive workshop at Bayut Academy.
Find out more tips on taking your real estate career forward with our resources on the Content Corner in the Agent Portal.