Real Estate Agents around the World
Most countries and markets have some really professional practitioners in the real estate business. Finding them is usually the problem. In many countries the industry is totally unregulated; so bad actors don’t get punished or removed from the business. They continue sowing havoc throughout the local market.
The lack of regulation is the main problem. The buyers and sellers are also a large part of the problem. The buyers and sellers have no loyalty to the broker. The broker returns no loyalty to the buyer or seller. Every party looks out for their own self-interest only. No one really benefits. Markets need several things for the brokerage system to function well and provide actual benefits for the buyers and sellers.
The first is regulation and licensing. This is best done by government. In some places where government is unwilling to do the job. Trade associations try to fill the gap. A good example is AMPI in Mexico. They have a code of ethics and minimum membership requirements. This is better than no regulation at all; but it cannot compare with government regulation. Panama is an excellent example of regulation stimulating the market. Since they began licensing brokers, the real estate business and the brokerage business have both prospered.
The second thing is exclusive listings. When a broker cannot get an exclusive listing they have to keep the fact that the property is on the market a secret in order to be in the middle of the transaction. When “everyone” is responsible for marketing, “no-one” does it.
A multiple listing system, where all brokers share all listings is the next thing. Multiple listing systems and exclusive listings are like the chicken and the egg. Either is difficult without the other. Brokers sharing listings with universal offers of cooperation is the only way for the brokerage business to function efficiently and for the real estate markets to achieve their full potential.
Transparency is also a necessity. Unless the data on comparable sales is available, pricing and appraisals are just guess work.
David Segrest is a REALTOR in Charlotte, NC
David S. Segrest, CIPS, CCIM, TRC, CEA
david@segrestrealty.com
http://www.segrestrealty.com
Serving the world in the Carolinas, Serving the Carolinas in the World
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