It offers the best opportunity for an agent to convert a listing into commission
LIAM ORANGE
Principal Product Manager, Property Finder
Short-term rentals is a booming industry worldwide but has only recently started to grow in Dubai and the UAE. Therefore, this is the right time to write about this trend, especially in line with the upcoming Expo 2020. The biggest challenge is explaining to homeowners the benefits of short-term rentals. However, it’s getting easier as the sector develops. What I love about the industry is that it’s a win-win for everyone: owners make more money and have full access to their properties, guests have more accommodation to choose from at different price points and empty properties get used.
In an open market with no limit to the number of brokers that can list a single property, the experience for buyers and sellers is more frustrating than it needs to be. Some sellers believe that engaging several brokers will lead to greater exposure, a quicker sale and a higher price – but this is usually not the case. Intense competition to close sales can lead to unethical behaviour from some brokers, where there is no incentive to achieve the best outcome for the seller. The reality is that the same buyer will return to the property with various brokers, who will then only deal with the broker advertising the lowest price.
At Property Finder, we believe that listing a property exclusively with a licensed brokerage is the best approach for sellers and holds the key to a more professional real estate market in the UAE. That is why in 2019, we launched our Exclusive Listing product to reward brokers who actively secure exclusive appointments and improve the holistic experience for our consumers.
What is Property Finder’s Exclusive Listing product?
Exclusive Listing is effectively a new category of Property Finder listing. It demonstrates to buyers that the owner(s) of the property has entered into a contract with a licensed real estate agency, whereby the chosen agency has the exclusive right to advertise the property and will be the exclusive representative of the seller to close the deal.
Every Exclusive Listing goes through a fast-tracked verification process to ensure that the broker has a signed Form A to prove the exclusive appointment. When published, Exclusive Listings enjoy priority ranking in search results, appearing above Verified Listings for the same product type.
How does an Exclusive Listing benefit buyers?
From a buyer’s perspective, an Exclusive Listing provides reassurance that the listing is authentic and “on the market”. Better still, consumer only has to deal with one agency regarding this property, reducing lost time and unnecessary frustration from being shown the same property multiple times.
Simply put, brokers will prioritise enquiries from Exclusive Listings over non-exclusive listings. Their incentive to sell is much greater, which translates to faster response times and the highest degree of professionalism.
From a buyer’s perspective, they only have to deal with one agency regarding this property, reducing lost time and unnecessary frustration from being shown the same property multiple times
What are the benefits of listing exclusively for landlords?
An Exclusive Listing gives landlords the best chance of transacting quickly, at the highest price, with the least amount of hassle. Landlords have peace of mind in building a relationship with one qualified agent, knowing they will put in maximum effort to move the property rather than have five agents doing the bare minimum.
It is also worth remembering that most agents have many listings on the market at one time. An Exclusive Listing will ensure that an agent prioritises yours above non-exclusive listings, which significantly enhances the chance of a result.
Exclusive agents are not prevented from working with other brokerage companies to source a buyer or renter, which effectively opens up access to all property seekers in the market. This is at no additional cost to the property seeker or landlord as the two agencies will privately agree to the commission being split.
What’s in it for the brokers?
It is important that the agent feels that their hard work has a high chance of being rewarded. An exclusive appointment offers the best opportunity to convert a listing into commission. In contrast, where a property is listed with five other agents, then the agent will feel that they have a lower chance of being rewarded for his/her efforts.
To summarise
At Property Finder, we are focused on building products that improve the real estate market as a whole and provide mutual benefit for property seekers, landlords and agencies. As a landlord, consider the benefits that an exclusive appointment will offer you and ask the agent for an Exclusive Listing on Property Finder.
If you’d like to talk about products or know more about what we are building, please feel free to reach out to me at liam@propertyfinder.ae.
