'Comparing real estate agencies in Portugal and the US: first-hand differences'

The United States and Portugal are two countries with very different real estate markets and ways of buying and selling homes. As part of an interview for idealista/news, Massimo Forte, a consultant, trainer and coach specializing in real estate, took on the challenge of acting as a journalist to talk to Andrea Cordeiro, who has been in the industry for 19 years.

Experience working abroad

Andrea talked about her experience working abroad. It all started in 2019 after a trip to New York with friends. "A few months after that trip, I finally moved to New York and decided to completely change my life. I decided to leave behind a portfolio of clients I had worked with for over 16 years and start from scratch in a completely unknown to''me country.".

Andrea currently holds a U.S. residency permit as well as a license to work as a real estate consultant. She began her work with an ambitious project - selling real estate in Portugal to American clients, an increasingly popular trend in the country. "I had contacts of my colleagues from real estate agencies, clients and developers in Portugal, and I decided to contact them and offer cooperation. Thanks to that, I was able to close a few deals and make some money to last me until I started working in real estate in New York. I continue to do that to this day. I go to Portugal three or four times a year to meet with business partners and have properties''real estate for sale to American customers and also to Portuguese immigrants living here'.

Comparing the real estate market in Portugal and the U.S.

Comparing the real estate market in Portugal and the United States is a complex exercise. One difference is that the US has a platform called Multiple Listing Service (MLS). How does it work? "In the US, we use MLS to list all properties. It's a platform that agents pay an annual fee to use. I pay for two MLSs since I work in New York and Connecticut. This platform works great because we have access to all properties as soon as they come into the system. "

When we have an interested buyer, we don't have to search for the right property on''our website or other agency websites. Within this platform, we can access all information about the property, such as whether there is an offer, whether the property is under contract or has already been sold. We can also find out the commission offered by the agent and the conditions for viewing the property. We have access to all real estate information such as tax levels, owners and the number of sales since construction began.

The real estate showings system

How does the real estate showing system work? "Within MLS, we have a system where we can assign viewings directly. All you have to do is click a button, specify the day and time of the viewing, and the system will confirm it with the terms of access. If the property is active, the agent is obliged to''show it. In Portugal, in many cases, peers make it difficult to schedule viewings to make 'captive' deals. "

Lockboxes

Tell us a little bit about lockboxes. What are they and what are they used for? "In the United States, almost all properties have lockboxes. Usually the lockboxes codes are numeric. To gain access, we need to have an app on our phone and when we arrive at the property, we enter our personal code and open the lockbox which contains the key to the property.

G/h3>Once a real estate license is obtained

Are there many differences between the two countries when it comes to obtaining a real estate license? "In Portugal'"Anyone can pursue the profession of real estate consultant. All you have to do is get an interview and, if you like the conditions, you can start working."

"In the US, we have to get a license for each state, which has to be renewed and paid for annually. We also have to be registered with NAR, the National Association of Realtors. This is just one of the annual costs, also including access to the MLS, lockboxes and commissions of the agency we work for. "

"Captive" transactions

You've mentioned "captive" deals several times. This has to do with the commissions received for closing and selling, correct? "In Portugal, advisors always try to do "captive" deals to get more commission. In the US, in order for an agent to do a 'captive' deal,''he needs to have a document signed by both the seller and the buyer consenting to his representation. If one of the clients disagrees because of a conflict of interest, the agent should select a colleague with an active license to represent one of the parties. Sometimes a referral is passed on.".

The payment of commissions

How are commissions paid in the United States? "In Portugal, when a transaction is concluded, the real estate agent is present at the notary or attorney's office and the commission is paid by the selling client. The payment can be made the same day or later. Often the real estate agent has to call and ask for payment. "

"In the U.S., transactions are done in attorney's offices, and real estate agents representing the seller and''the buyer, are present. At the end, the attorney hands the commission checks to the real estate agents. The transaction cannot be completed until the real estate agents receive the commission checks. "

"Escalations in stores "

"Escalas in stores." What are they and how do they work in Portugal and the U.S.? "In Portugal, there are what are called escalas, which means a counselor is in the office at a certain time and all customer inquiries by phone, visits in the office or inquiries from the website belong to that counselor. "

"In the U.S., there are no escalas or commercial service offerings. Counselors must find clients themselves through their contacts. Offices do not provide potential clients because in most cases agency brokers also sell real estate''and are our direct competitors'.

Access to customers' personal information

How is it with access to customers' personal information in the U.S.? "In Portugal, when searching for customers, it is difficult for us to access their personal information. In most cases we have to knock on the door to communicate with the owner. There is a data protection law here. "

"In the US, agents have access to the personal data (name, address, phone and email) of all property owners. There are several sites to search for information, as well as direct access to the MLS through an app called "Remine." This tool is widely used to send letters and make calls to solicit properties. We just can't call phones labeled "Do Not Call" so''as they are protected by the Data Protection Act'.