'Housing Crisis: Developer seeks fixed commission to reduce sale price'

Housing crisis: real estate advocates 'fixed commission as a way to lower sales price'.

"We believe that regulation of the industry should go through decertifying processes and structuring relationships between participants, as well as making money laundering and real estate legislation more robust," predicts CEO Imovendo.

With Euribor rates rising to their highest level since 2008, there is growing concern among those looking to sell or buy a house, with more and more blaming the situation on rising interest rates.

PUB 'Managing the expectations of owners who are selling their homes due to economic need, with buyers who cannot afford the rates required''to get a mortgage', has become an urgent debate topic.

"People want, need and demand to know what they can expect, and any indecision or delay in presenting effective offers only worsens the situation and consequently the real estate market," says Miguel Mascarenhas, CEO of real estate agency Imovendo.

PUB In the crisis, real estate agencies, as active market players, "should also be involved and join families to demand three things: regulation of the industry, better conditions for realtors and limits on real estate commissions," defends Mascarenhas.

"We believe that regulation of the industry should come through decertification of processes and structuring of relationships'between the participants (builders, real estate agencies, municipalities, notaries, banks and credit agencies). Legislation on money laundering and real estate should also be strengthened, as well as effective controls on transactions brokered,' predicts Imovendo's co-founder, 'proptech', who recently conducted a survey in which more than half of the 1,112 respondents say that real estate agencies are one of the main causes of the housing access crisis in Portugal.

According to Mascarenhas, "If we want a healthy real estate market, owners need to feel confident in what is often a deal of a lifetime. There needs to be a strong structure and proximity of participants," he says.

PUB 'Income'. 'Realtors in many cases depend on self-promotion and are divided between different levels of the agency.' In addition, "most work as freelancers, getting paid by receipt," he notes.

For the real estate market to be "fair," Imovendo's co-founder believes that "conditions need to be created for realtors to be happier employees and trained salespeople, ensuring business between agencies and appropriate market dynamics, ensuring professionalism and security for owners when transferring their properties.

How. "Fixed real estate commission as a way to lower the cost of sale without loss to the owner, promoting better market functioning, greater business profitability and''a corresponding reduction in the cost of home loans would be the best solution,' Mascarenhas suggests.

PUB If we want a strong real estate market, "we can't maintain a percentage-based fee system that favors certain sales - expensive homes bring in higher commissions - to the detriment of others - cheaper properties bring in lower commissions. Owners end up at a loss, the market stagnates, and unnecessarily high commissions are not explained by efficient performance," he warns.

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