Not all land markets are created equal. The differences have fundamentally supported by the principle of cooperation.
International land authority, Carlos Matias, explains that the first difference across global markets is rooted within the presence or absence of systems and policies supported cooperation. As founding father of leading global land technology companies, GryphTech and Phoenix Software, Carlos has 20+ years of experience helping global land companies in over 60 countries grow and is uniquely qualified to know this.
According to Carlos, four of the foremost significant challenges unique to land markets outside North America are as follows:
1. Lack of Systemic Cooperation
Without an MLS system, associates are reluctant to cooperate, buyers struggle to understand what's on the market, and sellers have limited property exposure to get a fast sale at the simplest price. With quite 800 MLSs in North American land, broker cooperation is that the norm and broadly perceived as beneficial for both sellers and buyers. Sellers enjoy increased exposure for his or her properties and buyers enjoy access to all or any MLS-listed properties while working with just one broker. Whereas outside North America, there are only a few areas with an MLS, so brokers, as a rule, don't typically share their listings. As a result, the way during which consumers look for, buy, and sell properties and associates service their clients varies significantly.
As an example, a couple of years ago Carlos experienced this challenge first-hand when trying to find a property to get in Portugal. to start his search he traveled to Portugal and walked into a true estate office asking to ascertain some local listings. He was shown only three or four listings represented by that agent and when he asked if there have been any others he was pointed to a different land office down the road. When walking into this second office, Carlos was again shown just a couple of listings and directed to yet one more office a couple of streets over to ascertain if that they had additional listings. This was clearly not the foremost efficient model from a buyer’s perspective nor did it serve the seller’s best interests.
When competitors cooperate it benefits everyone involved within the transaction. It also provides for max exposure of properties, which is sweet for both buyers and sellers. Without an MLS, brokers create their own separate systems of cooperation, fragmenting instead of consolidating property information. This fragmentation inhibits the quantity of exposure each listing receives and limits referral opportunities between associates.
2. Open Listing Agreements
Open Listing Agreements limit seller opportunity thanks to the prices of undedicated representation and misguided buyer perceptions. Unlike North American markets where exclusive listing agreements are largely the norm, within the majority of markets outside North America, open listing agreements are commonplace.