Dubai : The propertyfinder.ae website has added a feature which allows potential buyers and tenants to calculate the average they should pay for a property.
A discussion over what the ‘real' market price should be has occupied the real estate industry for some time.
Experts have concluded the price depends on demand and supply at a specific time.
"There is no market price other than what a buyer is prepared to pay and a seller willing to accept depending on their personal circumstances," said Asteco CEO Elaine Jones.
However an indication of where to set a price, especially for those new in a market, would serve as a welcome guide.
The new website tool called ‘Market Price Life' compares all property adverts posted by member agents.
The result is an average advertised price, not a transaction price, which could differ as the gap between asking and offering price in the UAE has still not closed.
"Some sellers feel they get downright silly offers for their properties," said Landmark Properties CEO Charles Neil.
"The gap between asking and offer price has widened but should sort itself out again."
propertyfinder.ae head of marketing Marcello Sambartello said prices advertised on the website feature were sometimes thought to be on the high side.
"This is an issue the agents posting the adverts need to address," he said.
Real Estate brokers largely agree that properties have to be priced reasonably to not confuse punters.
"We do encourage sellers not to overprice property," Neil said.
However, brokers would push this matter harder when they have to spend more on advertising a property in print rather than online.
"Only 10 per cent of ads out there online are worth looking at (realistically priced)," said Engel & Völkers head of real estate Jakob Kristensen.
"We can work with a discrepancy of about 25 per cent between asking price and the offer made.
"We put our best 30 properties in Gulf News the rest, over 1,000 goes online."
He added his brokerage had banned silly offers.
"A big part of our time should be spent on negotiating the right price, not useless adverts."
It will be up to those using the tool online to judge if they feel the average price the property they are searching for is right or not.
The website tool allows for a detailed area search, narrowing down the margin of error.
For example a villa in the Arabian Ranches or an apartment in Downtown Dubai can be searched by type, area or tower.
Agents can also be selected, for example a search could leave out brokers known to advertise high prices out.
The search reveals the most common price in relation to the number of listings for that kind of property. It can also show the average square footage and price. Sambartello said results were up to date.
