A property intermediary is concerned that the new regulations being proposed for real estate agents will force her to raise the amount of commission from two per cent to around five per cent.
Property intermediaries or introducers, known as sensara, range from full-timers like Janice Azzopardi, to part-timers who get to hear about properties for sale through their work – anything from notaries dealing with inheritances to village grocers – and match them to a buyer.
At present, these intermediaries charge one per cent to both the buyer and seller of the property – but Ms Azzopardi, who set up a website at the beginning of the year, is convinced that the task force drafting the White Paper on the regulations is determined to bring the commission in line with the five per cent charged by real estate agents.
Ms Azzopardi is sick and tired of the way that real estate agents try to portray intermediaries in a negative light – and is quite willing to say so.
“Let me say, loud and clear, that I acknowledge that there are a lot of cowboys out there who know nothing about property, who become intermediaries opportunistically because they hear that something is for sale.
“Many of them know nothing about the legal or financial side of buying and selling a property, let alone about its price and condition. But there are people like myself who have worked in both the construction and property industry for decades,” she said passionately.
The task force is made up predominantly of real estate agents and developers, who she believes are obviously looking at their own agenda.
“Real estate agents know that only a percentage of the public turns to them, and they are constantly trying to show what value-added they offer through their services, databases and so on.
“But they are only as good as their staff and I know from working with some of them that there are times when a ‘property consultant’ takes someone to view a property that they themselves have never seen!
“The big companies are aware of this – which is why the leaders from the main real estate agents are the ones pushing for higher standards through the White Paper. The intention is to do this by making it obligatory to have a warrant – which would in turn impose the need for training, which many sensara would not be able to afford – but I cannot see why they should also tamper with the commission, as seems to be the case,” she said, saying she would fight any such attempts to prevent her from offering a cheaper service, in the interest of the consumer.
There are an estimated 600 property intermediaries in Malta – but the actual number could be much higher as some people only ever sell a handful of properties and do not pursue further business.
“I keep costs very low and focus on a few locations that I know well. I can afford to provide a service for just two per cent – and that is already built into the price on my website so what is quoted is what the buyer gets and the seller pays. And the price valuations that we give customers are much more realistic. Isn’t that what competition is all about?
“Like all the serious stakeholders, I am convinced that we should do all we can to raise the level of professionalism and prevent cowboys from giving the sector a bad name. But let us do this without curbing competition.
“I am all in favour of getting a licence or warrant. I am more than convinced that I would pass with flying colours! I wonder how many of the existing ‘consultants’ would...” she said with disdain.