Buying property anywhere is stressful. Using one agent to help through the entire transaction is one way to offset the stress… IF you can find an agent you trust and can make that ever important personal and professional connection. We’ve had many a qualified agent come through the doors at Bayut Academy, and heard too many stories of clients jumping from agent to agent for no reason. So why does this happen? We think many potential buyers, sellers and renters believe some of the most common myths about Dubai realtors.
We encourage our readers to stay loyal to the professional agents who do provide value and not believe the below myths.
Dubai brokers are paid a salary
While some make a very low basic salary, this is recouped back to the broker. But how do they afford their expensive clothes, that car, the lunches and coffees, etc., you say? The answer is – from previous commissions. 100% of your agent’s time and expenses depend on them. If you find one that is providing value, do them the courtesy of allowing them to complete the sale.
that commission goes to them
This is not true. Depending on if they get a small basic salary or not and how senior they are, they keep between 25-50% of that commission. When it is all over, the amount they take home may be a surprise. Let’s take an AED 750,000 house and assume the seller’s agent is getting 2%. This works out to be AED 15,000 in total commission for that sale. However, that agent could get as little as AED3,750 or as much as AED7,500. And most likely that agent didn’t just show you one house. Think how much time and expertise they provided you. Now imagine, they worked with another agent to show you that property? That commission may now be AED 1,875 – AED 3,750.
For the agents that have provided you with market insight, built the personal and professional connection, worked with other agents, picked you up and taken you for lunch/coffee that is not much money at all. Imagine what happens when you take their advice, insight and professionalism only to go through another agent. That previous agent, the one that provided value just got paid AED 0.00.
The agent’s car, Salik and phone expenses are all paid-for
Yes, this one is not true either. All the trips the agent makes to show homes; the trips that the agent sometimes makes to clean the property beforehand; the Salik tolls, the phone charges, the trips to take photos, the meetings with owners, the meetings with clients who don’t buy or decide to go with another agent just because; the wear and tear on their car. None of these expenses get recouped.
Another agent has the same property listed at a cheaper price
Now, occasionally there will be an exception to the market price but this is the exception to the rule. Be very wary of the agent who advertises a property at a lower price. This is most likely a bait and switch move and never do business with someone who “just sold that property but has another for just AED 20,000 more.” If that property exists, allow your agent to work with the listing agent. Trust us, shared commission is better than no commission.
Buying a house is like buying gold in the gold souk. Always start low
Just as sellers make the mistake of pricing too high, buyers often offer a price that is too low despite their qualified agent advising against such practices. While it is acceptable to negotiate, going too low will only alienate the seller and prevent you from being taken seriously. Worse, it could end with a seller refusing to entertain any offers as you have insulted him. Remember all the things your agent did to help you? When this happens, both you and the agent end up with nothing. When an agent is professional and armed with market data, trust them.
All Dubai agents are the same
This is absolutely not true anywhere in the world and is certainly not true in the UAE. Agents in UAE are often lumped together, and the bad practices of some agents ruin the reputation of the many professional agents. Different agents have different techniques, different approaches and not all will be the best fit for you. Interview a few agents and find one that connects with you professionally and personally. Allow them to call other agents on your behalf and allow them to close the deal should they provide value and service. If they’ve done the legwork, they deserve the business.
There are many agents throughout the UAE who are professional, ethical and work diligently. Please remember what they have done on your behalf and allow them to close the deal. Jumping ship for no reason just isn’t right.
This article was written by Caroline Tinkle, the Senior Customer Experience Manager at Bayut
If you’re a broker and you’d like to brush up on your Customer Service skills and attend a training at Bayut Academy, send an email to Caroline at firstname.lastname@example.org.