Housing Crisis: Real estate agency and fixed commission to lower the cost of selling

With Euribor rates rising to their highest levels since 2008, there is growing anxiety amongst those looking to sell or buy a house. More and more people are blaming rising interest rates for the current situation. Managing the expectations of owners who are selling their homes because of economic necessity and buyers who cannot afford their mortgage payments has become an urgent issue.

Miguel Mascarenhas, CEO of real estateagency Imovendo, believes that people want, need and demand to know what they can expect, and any indecision or delay in real offers only worsens the situation in general and, consequently, the real estate market.

In such a crisis situation real estate,''Real estate agencies, as active market participants, should also be responsible and join families to demand three things: regulation of the industry, better conditions for real estate consultants and restrictions on real estate commissions, insists Mascarenhas.

He believes that regulating the industry should include simplifying procedures and structuring relations between market participants (builders, real estate agencies, municipalities, notaries, banks and credit agencies).

Mascarenhas also notes that in order''For the real estate market to be fair, it is necessary to create an environment where consultants are happier and more trained sellers, thus promoting business between agencies and ensuring professionalism and security for owners when transferring their property.

The best solution, according to Mascarenhas, would be to introduce a fixed real estate commission in order to reduce the cost of sale without affecting the owner, contributing to a better functioning market, increased business profitability and a corresponding reduction in the cost of mortgages for home purchases.

If we want to have a healthy real estate market, we cannot maintain a percentage-based fee system that favors certain sales -''more expensive houses bring in higher commissions, to the detriment of others - cheaper properties bring in lower commissions. Owners suffer, the market stagnates and absurd commission fees are not justified by real work, warns Mascarenhas.

We must show the state that a fair and healthy real estate market is synonymous with a thriving economy, concludes the CEO of Imovendo.