Real estate buyers in Cyprus are Struggling

[Saudisteve63]

I find the article today very interesting especially the penultimate paragraph saying that real estate agents dont set the prices for properties for sale and rent.

We are always being reminded to use a licenced agency.

If they dont advise on the price then what services do they provide . Just marketing of the property?

Thx

[Nigel Howarth]

Hi Steve,

In the UK it's very straightforward for an estate agent to assess the value of a property as houses change hands every seven years on average. There's a wealth of information about sale prices achieved in the same area as the property, when they were sold, etc.

There's none of this in Cyprus. I've lived in my house in Cyprus for 20 years and my neighbours haven't changed in that time. An agent cannot find out sales prices achieved in the area (they're prevented from doing so as the information is confidential) and there's slower turnover of housing stock.

Some agents are able to provide a realistic valuation of a property, but some people selling property have unrealistic expectations of its value and it's that value that's used to advertise a property.

I wrote an article many years ago Top 8 questions to ask estate agents, which contains a hint of the problem.

A RICS valuation surveyor or a member of the Valuers Association will be able to provide a more authoritative estimate of a property's value

Regards,

[Pantheman]

I find the article today very interesting especially the penultimate paragraph saying that real estate agents dont set the prices for properties for sale and rent.

We are always being reminded to use a licenced agency.

If they dont advise on the price then what services do they provide . Just marketing of the property?

Thx

Real estate agents don't set the prices or rents, the market does. The RE agent advises on the likelihood of achieving a certain price based on other properties sold that are similar. Of Course as Nigel pointed out, data in Cyprus is hard to get, Valuers can obtain comparable from the land registry and unbeknown to many it has now been agreed that registered and licensed agents can do the same.

This brings us to properties that have no comparable sales figures to compare, here it needs to be evaluated by a different method, usually by conducting a Depreciated Replacement Cost (DRC) analysis. Most agents are not familiar with this technique as it is the kind a valuer may use.

Many agencies that have 'Sales Consultants' wouldn't know a valuation it it hit them on the head and even worst the ones that don't even speak, read or write in Greek.

In many cases, owners want to set their own rents or sales prices regardless of what the agent might advise.

The agents job (the ones that know how to do it) is not only to market the property, but to explain the law and the intricacies to any potential buyer in order to facilitate a sale. Not to mention being a guide to lawyers, banks or other government organisations.

I hope that has clarified you concern?

[Saudisteve63]

Thanks both for your frank and honest answers to the question.

We also have found the real estate agents here lacking . Especially the ones we have had the misfortune to come across both from a selling and buying perspective

We recently sold our property privately ourselves after the agents suggested unrealistic prices for what was a standard 3 bed villa .

[Cat Taylor]

Could you advise how you sold your villa yourself?
How you marketed it etc what lawyer did you use?

[thedukewood]

All seems very wild west to me and very challenging to get a feel of what the true market price should be.
At least that's what I have found looking so far

[Nigel Howarth]

All seems very wild west to me and very challenging to get a feel of what the true market price should be.

A RICS Valuation Surveyor will give you a realistic market price. You can find them listed at Surveyors in Cyprus.

Alternatively, a member of the Property Valuers Association.

IMO many people trying to sell their property put it on the market for considerably more than it is worth.

Regards,