The biggest differences between real estate mediation in Portugal and the USA

There are significant distinctions between the two marketplaces and prevalent techniques of selling and buying a home in the USA and Portugal´s real estate sectors, which are highly different from one another.

23 Feb 2023 min de leitura

The real estate sector in the USA is very different from Portugal, mainly due to the geographic dimension of both countries.The strategies for selling and buying a home that are used in the two marketplaces are very different from one another. Massimo Forte, a real estate agent, trainer, and coach, spoke with Andreia Cordeiro, who worked as a real estate agent in the Algarve and headed to the USA.

She starts the story by saying, "I obtained my real estate consulting license in New York and Connecticut and I´m currently employed as an agent".

Before relocating to the US, Andreia Cordeiro worked at ERA Alvor and Remax Sun, both in the Algarve. She shares her experience as a real estate consultant overseas, an adventure that started in 2019 following a trip to New York with friends. "After returning from that trip, I went to New York permanently and made the decision to start again. I made the decision to start over in a foreign country after leaving behind a portfolio of over 16 years old of clients.

She currently holds a residence card in the nation and has already earned a license that allows her to work as a real estate consultant. The selling of houses in Portugal to North American clients, a trend that has grown in the region, is where Andreia started her adventure.

"I made the decision to get in touch with them and extend an offer of collaboration because I have connections with my real estate colleagues, clients, and builders in Portugal. In order to maintain myself until I could work in the real estate industry in New York, I was able to do some business and earn some money. I still continue on doing it." To offer houses to North American clients and Portuguese immigrants who reside here, I visit Portugal three to four times a year to meet with business associates, she claims.

Massimo Forte first asks Andreia Cordeiro a series of questions.

- Is one of the biggest differences the fact that the US has a platform called Multiple Listing Service (MLS)?

In the US, all references are entered into the MLS. It is a platform used by real estate consultants that is funded yearly and operates by states: Andrea pays two MLS because she works in New York and Connecticut. The platform is great since it allows users to see offers from all real estate companies as soon as they are submitted to the database.

There is no need for a buyer who is interested in a property to visit the websites of other agencies or real estate portals in order to find the property of interest to him. You have access to all information about the property on the same platform, including whether you have a proposal, if a purchase and sale agreement has been completed, or whether it has already been sold. You may see the cost of the commission that the real estate offers as well as the requirements for making a viewing appointment.

- And how does the planning of the viewings, the " showings" work?

MLS has a system that allows you to schedule visits directly. Simply click the button indicating the date and time you would like to book the visit and the system will confirm the visit with the access conditions. If the property is still in operation, the consultant is obligated to show the property.

- What is Lockerbox and how does it work?

In America, most homes have lockerboxes. Lockeboxes codes are usually digital. Access requires the system app to be installed on the mobile phone. Upon arrival at the property, you enter your personal code to open the locker containing the property key. In the United States, seller agent does not accompany the buyer agent to viewings. The good thing about this is the fact that these agents spend more time acquiring new properties, the bad is the fact that buyers’ agent don´t know the properties well and can´t provide good service due to lack of information.

In the United States, for a real estate agent to represent a buyer and seller, a signed document is required of both parties agreeing to act on their behalf. If one of the clients disagrees due to a conflict of interest, the real estate consultant must select a colleague with a valid license to represent one of the parties.

- How are commissions paid in the US?

In Portugal, when the deed is signed, whether it is a private notary or notary (Casa Pronta) or a law firm, the buyer and seller and the real estate agent are present, and the commission is paid by the seller´s client. Payment can be made on the same day or later.
In the United States, transactions take place in law firms and there are real estate agents representing the seller and the buyer. Finally, the attorney gives the corresponding commission check to the real estate agent. The deed cannot be completed without the real estate agent receiving the appropriate check for commission.

- Shop schedule. What are they and how do they work in Portugal and the USA?

In Portugal there is a so-called schedule (Escala in Portuguese). This means that agents will be in the office for a period of time and all leads generated through phone calls, store visits, or website inquiries will go to the consultant.

No stopovers or in-service agents in the US. Agents should make their own clients from their sphere of influence. In most cases, agency brokers also sell real estate and are direct competitors, so the offices don’t give leads.

- Is there full access to US customers´ personal data?

In the United States, realtors have access to all landlord personal information (name, address, phone number, email). There are several websites that you can search, and you can also access MLS directly through an application called "Remine". This tool is typically used to send emails or phone calls to solicit properties. Phone numbers marked "Do not call" cannot be called as they are protected by data protection law.

In short, the main differences are the use of the MLS platform, where each consultant has access to all kinds of information and properties in the US market, unlike in Portugal, the lockers where you can access the property keys via a code, and the seller agent not being required to be present at the viewings.

Text Adapted from Idealista