Do you know how real estate agents can help you? Do you want to know all the details about the role of an estate agency? We have written this article so that you can clarify all your doubts and follow the best guidance in the transaction of your property. Do not be alone in a significant step of your life.

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What is a real estate agency?

Real estate agency is an activity in the housing sector that involves the promotion of real estate to third parties, i.e., clients, with the aim of selling it. These agencies are not limited to sales but also broker properties for exchange, transfer or rent. The real estate offers are displayed on digital platforms, presented to the company's client portfolio, and advertised locally through posters. The means for successful advertising are many and include property photography, 3D video tours, aerial photography and written marketing plans with content.

Take a look at our property portfolio and see the resources we use to market your home.

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The listing of new properties is another responsibility performed by a real estate agent. This is an important industry segment since it provides portfolio buyers with many options. Property listing is about finding properties with sales potential that should end up meeting the buyers' requirements.

Listing contracts can be exclusive, meaning there is permission for the real estate agency to advertise the house alone, without other agencies being able to do so during the contract period. The exclusivity contract is beneficial for both parties. The real estate agent has more freedom of choice and can pursue a better marketing strategy. In addition, the buyers' visits are not affected by the other agents' schedules.

The exclusivity contract is advantageous for the seller because it guarantees that the agent will focus on selling your house at the desired price and in the shortest possible time.

Want to put your home on the market but do not know the value of your property?  Check this link and see how we can help you.

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The growth of the real estate sector in Portugal

At the end of 2021, there were 14% more new companies related to the real estate sector in Portugal than in the same period before. Although it was a year still marked by the pandemic, an average of 136 real estate agencies were created per month. This increase in new companies in Portugal is due to the high demand from buyers. The pandemic and subsequent restrictions have shown that some homes are not suitable for families. Spacious homes with private outdoor areas and rural areas demand may have been the trigger for new companies opening, and operating in the real estate market.

In the Algarve, there are sub-agencies associated with major international brands. However, there are also estate agencies which operate on their own and are not hostage to the guidelines of a particular brand. The freedom of these agencies gives excellent results in a market as competitive as the Algarve. 

In the case of Casas do Barlavento, an independent agency, national and international clients are served with the proximity that smaller agencies can offer. Our agency operates only in the western Algarve, with each estate agent having precise knowledge of the needs of this specific market.

Real estate may always have cutting-edge technological tools, but technology will never be able to replace people. Human relationships create trust. These are the crucial ingredients for any business. When real estate agents list a property, they hold their clients' assets in their hands, which are sometimes their greatest material value.

Buying or selling a property could be the biggest transaction in a person's life. Almost half of the Portuguese people's wealth is based on their property. In 2019, they accounted for 49% of Portuguese people's wealth. It is important to understand the value of the interpersonal relationship between the real estate agent and the buyer/seller and the trust that this connection brings.

Learn about one of the Casas do Barlavento tools to promote your property on platforms dedicated to the real estate market.

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Do you know how much you should pay a real estate agency?

This is the biggest doubt of those who want to put their property up for sale: How much should you pay an estate agent? Many never know the exact value and prefer to venture into the competitive property market on their own. To avoid any doubts, we will provide you with the necessary information here and if you need more information, do not hesitate to contact us.

The main objective of an estate agent is to bring a seller and a buyer together by advertising the property correctly and then assisting with the legalities of the transaction. For this to happen, there must always be a real estate agency contract between the two parties, i.e., between the real estate agency and the seller/buyer. This contract should set out the rights and obligations of each party.

When a contract is signed with a seller, the amount to pay to the agency may differ. Because there is a minimum and maximum limit in Portugal, the percentage you pay to the agency can range between 3% and 5% of the transaction value.

When do you have to pay? Normally, this amount is paid when the house is deeded. Still, Portuguese law allows for an agreement to be recorded in the property contract in which both parties specify a payment period. In addition to the payment during the deed period, it is common for real estate agencies to request 50% or 100% of the value when the promissory contract is signed.

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What are the myths in real estate?

Surely you have heard some myths about real estate, and you take them for granted. Before making any deal, be informed, and nothing better than exposing all the doubts to your real estate agent. Read the most common myths about real estate and make the sale or purchase of your home without any mistakes.

1. Property owners decide the price of their properties

The owners give their final opinion on the property price, but this value depends on other factors such as the location, the house conditions and the size of the property. These elements will dictate the price of the house, and of course, the owner will have to confirm or change that same value. To get a quick and fair sale, listen to your real estate agent; he will have the necessary knowledge to achieve a good deal.

2. Undervalue your house

You will not achieve a higher value in a short time when you sell. Buyers are increasingly paying attention to practised values. If they find a house undervalued, they will notice it immediately when searching for other houses with the same features and in the same area. Your property will most likely remain on the market indefinitely, blocking you from receiving offers from potential buyers. If the same house keeps popping up on social media or real estate platforms, buyers will assume there's a problem with it.

There is also a myth associated with the undervaluation of houses, that people set the price a little higher in order to have room for negotiation. As already mentioned, buyers do research. Information is everywhere, and no one wants to take the time to negotiate if there are better offers.

3. You get better offers if the property stays on the market longer

On the contrary, if the property stays on the market for a long time, you are likely to get lower and lower offers. This thought usually occurs when your agent receives an offer after only a few days. You might think that the offers will be higher if the house stays on the market longer. It’s actually the opposite! As previously said, buyers are more likely to inquire about the house's condition if it has been on the market for some time.

4. Real estate agents do not believe in the potential of the house

If the real estate agent behaves professionally, he will appraise your home at the correct value, rather than the one you want to hear. Remember that the emotional value is not the same as the actual value! Sellers tend to confuse these two values, but the market needs hard data to stand out. Do not ignore estate agents who give you lower values than you want. If you feel more comfortable, do your research, talk to several agents and choose the one that gives you the most realistic value.

5. You save money by selling your house on your own

We believe that you can do everything yourself, but we know that a large percentage of people who try selling their house without the help of a professional sell for lower values. When you consider all the services provided by a real estate agent, you will see that the percentage of the sale given to the agent is fair. Casas do Barlavento provides useful services that will make your life easier:

- A marketing team focused on selling your property fast;

- An agency with a diverse client portfolio;

- An agent to manage all visit requests and enquiries about your property;

- Assistance with the house visits;

- Assistance with bureaucratic matters and negotiations.

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Keep up to date with all the latest news on the property market. We at Casas do Barlavento are at your disposal to answer your questions about the real estate market.