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AGENTS ABANDONING THE PRACTICE OF TOPPING PROPERTY PRICES WITH COMMISSION.
Abandoning the practice of topping property prices.
Several years ago, when I first ventured into the Ugandan real estate market, a common practice among real estate agents was to top-up property prices with their commission. This practice resulted in each agent having their own price for the same property. Back then, it seemed like a normal part of doing business, as landlords were often unwilling to pay commissions on their quoted prices.
 
Agents resorted to topping-up property prices in order to secure their commissions, and the more they added, the more they earned. However, this practice had its downsides, including the hardening of landlords' hearts, locally known as "Okuzimba Omutima."

As a proponent of capitalism and a believer in free market economics, I initially saw no issue with agents topping up prices. Buyers willingly paid the quoted price, and yet they had plenty of options to choose from. Moreover, topping-up property prices was not illegal.
 
However, times have changed, and this practice has become increasingly rare in favour of commission as a percentage of the sale price. In this blog, we will explore the reasons behind this shift in the Ugandan real estate market.

1. Emergence of large-scale Developers:
 
One significant factor that contributed to the decline of price topping was the emergence of large-scale property developers. These developers built numerous apartments and were unwilling to let agents set different prices for similar properties. To maintain a competitive edge and uphold their commitment to affordable housing, developers encouraged uniform pricing. Divergent prices for identical apartments within the same complex frustrated potential buyers and discouraged the practice of topping-up.

2. The Rise of Real Estate Portals:
 
The spread of the internet and the emergence of real estate portals like Lamudi, Realtor Uganda, and the Real Estate Database (RED) revolutionized the way properties were bought and sold in Uganda. These platforms allowed buyers to search for and compare prices of identical or similar properties easily. Agents who inflated prices found it challenging to compete when their listings were significantly higher than those of other agents on the same platform. Transparency and price visibility became key factors in property transactions.

3. Market Saturation:
 
In some areas, the property market became saturated with available properties. Oversupply reduced the ability to create artificial scarcity and drive up prices through topping-up. The abundance of options and increased competition among sellers put downward pressure on property prices, discouraging the practice of price topping.

4. Focus on Affordability:
 
Buyers shifted their focus towards affordability. When property prices became excessively high relative to the average income in Uganda, it limited the pool of potential buyers. This affordability constraint discouraged agents from inflating prices, as it could lead to properties sitting on the market for extended periods.

5. Reduction in Speculative Buying:

Speculative buying, where investors purchased properties solely for the purpose of selling them at a higher price in the future, was a driving force behind property price inflation. However, speculators have become less active in the market, resulting in a cooling effect. This reduction in speculative activity has contributed to more stable property prices.

Conclusion:

The practice of real estate agents topping up property prices in Uganda has evolved significantly over the years. While it was once a common practice driven by market dynamics, several factors have contributed to its decline. These include competition from developers, the rise of online real estate portals, market saturation, a focus on affordability, and a reduction in speculative buying.
 
As the real estate market in Uganda continues to evolve, transparency and fair pricing are becoming increasingly important, benefiting both buyers and sellers in the long run.

Kind Regards
Julius Czar
Author: Julius Czar
Company: Zillion Technologies Ltd
Mobile: +256705162000 / +256788162000
Email: Julius@RealEstateDatabase.net
Website: www.RealEstateDatabase.net
App: Install the RED Android App
Follow me on: Twitter, LinkedIn, Facebook.

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QUESTIONS EVERY AGENT SHOULD ASK THE SELLER. - In the competitive world of real estate, establishing a strong rapport with potential sellers is crucial for success. The ability to connect with clients on a personal level not only makes the selling process smoother but also increases the likelihood of securing the listing.   To achieve this, skilled real estate agents employ a set of key questions designed to build rapport and demonstrate their expertise. In this blog post, Lets explore these essential questions that can help agents co ....

HOW TO SEE THE LATEST HOMES BEFORE ANYONE ELSE. - Whether you're a first-time homebuyer, an investor, or someone looking to upgrade their living space, staying ahead of the curve is crucial. Fortunately, technology has made it easier than ever to be the first in line for your dream home. In this blog post, we'll explore how you can get a competitive edge by using the Real Estate Database (RED) App, available on the Google Play Store.What Exactly is The RED App.The RED App is a game-changer for anyone in the Ugandan real estate market. It's a po ....

STRATEGIES ON HOW TO THRIVE IN A SLOW MARKET. - Seasoned agents understand the importance of adaptability and resilience. A slow market, characterized by slow sales, reduced demand, and stagnant property values, poses unique challenges that require a strategic approach. In this blog, we'll delve into the strategies employed by seasoned real estate agents to not only survive but thrive in a slow market.1. Market Expertise: Knowledge is Power.   Successful real estate agents in a slow market are well-versed in local market trends. The ....

THE ROLE OF REAL ESTATE DATA QUANTITY AND QUALITY. - Industries across the globe are experiencing the Artificial Intelligence (AI) transformation, and the real estate sector is no exception. In Uganda, the integration of Artificial Intelligence holds the key to unlocking new possibilities in the real estate market. However, the success of Artificial Intelligence in this sector heavily relies on the availability and accuracy of real estate data.The Untapped Potential.Artificial intelligence has the potential to revolutionize Uganda's real estate se ....

NAVIGATING THE REAL ESTATE JUNGLE - Embarking on a journey in the real estate business is akin to navigating a dense and challenging business jungle. Vanda Martin, a real estate coach, in one of her online videos vividly recalls her early struggles of being a businessperson and salesperson in a competitive field of real estate.   It was during those challenging times that a wise mentor shared a valuable piece of advice with her on how to succeed in the jungle of real estate, one must understand and adhere to the laws govern ....

PROPERTY MANAGEMENT IS BECOMING A THING. - In recent years, the real estate landscape has undergone a significant transformation, with property management emerging as a crucial business option for many professionals in the real estate industry. As more people recognize the value of efficient property management, the sector is experiencing unprecedented growth, characterized by numerous exciting property management trends and emerging indigenous companies to watch. In this blog post, we'll explore the reasons behind the rise of property m ....

FEATURES THAT MAKE CERTAIN PROPERTIES MORE ATTRACTIVE. - When it comes to real estate, the concept of attractiveness goes beyond mere aesthetics. A property's allure is a complex interplay of various features that cater to the diverse needs and preferences of potential buyers or tenants. Lets quickly delve into the key elements that make certain properties stand out and become irresistible in the eyes of discerning individuals.1. Location, Location, Location.The age-old adage holds true – location is a paramount factor in determining a property' ....

PROGRESSING FROM LOCATION, LOCATION, LOCATION TO DATA, DATA, DATA. - In the realm of real estate, the timeless mantra has always been "Location, Location, Location." The value of a property was traditionally determined by its geographical proximity to amenities, schools, transportation, and other key factors.   However, in the 21st century, a paradigm shift is occurring, and the industry is evolving to embrace a new mantra. "Data, Data, Data." In this blog, we will explore how real estate is undergoing a transformation as data becomes an increasingly cruci ....

100+ MOST EXPENSIVE HOMES IN UGANDA TODAY. - Uganda, a country known for its stunning landscapes and vibrant culture, is also home to some of the most extravagant real estate properties in Africa. In this blog, we will take you on a journey through the opulent world of Ugandan real estate, focusing on the list of "The top 100+ most expensive homes" that redefine luxury living. Our insights are drawn from the meticulous curation maintained by the Real Estate Database (RED), a platform that plays a pivotal role in bringing together "Million ....

IMAGINE A CITY AS A LIVING, BREATHING ORGANISM. - Imagine a city as a living, breathing organism, where each component plays a vital role in its overall functionality. Credit for this imaginative metaphor, which is currently trending on LinkedIn, goes to Sam Stewart Mutabazi, an Urban Development & Transportation Consultant.   In this metaphorical journey, we'll explore how the transport systems act as the brain, people as the heart, sewage system as the kidneys, green spaces as the lungs, electricity as the eyes, and buildings as th ....

THE 3 KEY FACTORS THAT WILL DETERMINE YOUR INVESTMENT. - Investing in real estate can prove to be a lucrative venture. However, before taking the plunge, it is crucial to assess and comprehend the key factors that will significantly impact your investment decisions.In a recent interview that has been featured on LinkedIn, Judy Rugasira from Knight Frank Uganda highlighted the three factors that should be considered before venturing into real estate. I concur that these factors are indeed crucial, and this has prompted me to initiate a discussion withi ....

REAL ESTATE REPORTS BEYOND KAMPALA. - Real estate professionals and investors consistently seek updated and accurate reports on the real estate sector to make informed decisions in their daily operations and also provide valuable advice to their clients. It's evident that while most available real estate reports in Uganda are doing a very good job, they focus on Kampala where the major players operate. However, many real estate professionals are eager for reports that encompass a broader scope, covering regions beyond Kam ....

ORDERLINESS OF REAL ESTATE CAN HELP TO ASSESS WEALTH. - The orderliness of real estate stands out as a compelling visual indicator of wealth. Beyond the glossy facades and manicured lawns, the arrangement and condition of properties can reveal a great deal about the economic health and prosperity of an area. This blog explores how the organization and maintenance of real estate serve as a visual barometer for assessing the wealth of a country or neighborhood.The Symmetry of Success.Picture a street lined with well-kept homes, each showcasing a sympho ....

I DON’T WANT A MORTGAGE. - As the operator of the largest database of properties in Uganda, I often receive direct messages from individuals seeking advice on how best to make installment payments for their dream house or land that they have identified on the Real Estate Database (RED).   Considering their needs and specifications, I frequently guide such buyers to RED agents who can negotiate favorable installment terms with developers and landlords. Alternatively, I suggest exploring mortgage options by connectin ....

INTRODUCING AI-GENERATED HASHTAGS IN THE RED. - Staying ahead of the real estate curve is essential for real estate agents and property sellers/buyers. The Real Estate Database (RED) has taken a groundbreaking step forward by incorporating AI-Generated hashtags at the end of every property description at the point of upload, revolutionizing the way listings are discovered and shared on social media. The Power of Hashtags.Hashtags have become an integral part of social media culture, providing a simple and effective way to categorize and searc ....

DOES EXPENSIVE PROPERTY MEAN LUXURY? - The terms "expensive" and "luxury" are often used interchangeably, leading to a common misconception that they are synonymous. However, delving deeper into the intricacies of the property market reveals a nuanced relationship between these two concepts. In this blog, we explore the question. Does expensive property mean luxury, or does luxury property mean expensive?The Expensive Property Conundrum.The term "expensive property" primarily refers to the high monetary value attached to a real estat ....

WHAT TO LOOK OUT FOR WHEN CHOOSING AN APARTMENT. - Whether you're a first-time renter or a seasoned apartment dweller, there are several key factors to consider when embarking on your apartment hunting journey. Choosing the right apartment is a significant decision that can greatly impact your daily life and overall well-being. In this guide, we'll explore the essential elements to keep in mind to ensure you find the perfect home that meets your needs and lifestyle.1. Location, Location, Location.The first rule of real estate holds true for apar ....

A REAL ESTATE WEBSITE IS NOT AN EXPENSE. - An online presence has become more crucial than ever in the rapidly evolving landscape of real estate. As technology continues to reshape the way we conduct business, real estate professionals are increasingly recognizing the value of having a dedicated website.   That's why many real estate agents in Uganda have already joined the Real Estate Database (RED) and received a website as part of the subscription package. If you're looking to join the RED and get your own website, contact Juli ....

IS IT TIME FOR AGENTS COUNTRYWIDE TO COLLABORATE? - Is it time for city real estate agents to collaborate with their rural counterparts? This partnership could potentially lead to increased coverage and a diverse range of property listings. Let's explore why this collaboration might be the key to unlocking new opportunities in the real estate market.   Sharing the same RED account and website.   The Real Estate Database (RED) has a collaboration function that enables subscribing real estate agencies to add several trusted agents to ....

HOW TO FIND HOUSES FOR SALE NEAR YOU. - With the advent of advanced technologies and online platforms, the process of finding a house near you has become more accessible and efficient. One such powerful tool at your disposal is the Real Estate Database (RED), a comprehensive platform that can help you discover houses for sale in your desired location. In this blog, we'll explore two effective ways to navigate the RED and find the perfect home by selecting your specific location and by utilizing the RED property map.1) Selecting Your L ....

REAL ESTATE AGENT SERVICES ARE NOT FREE. - Do you realize that real estate agents are independent contractors? They wake up every single day self-employed, meaning they don't have a salary, they don't have the ability to have an opinion on something. This is in stark contrast to employees who can simply return to their jobs, receive the same paycheck, and enjoy benefits, retirement plans, and vacation time.Despite these significant differences, there is a growing chorus of voices criticizing real estate agents. Some claim that agents are ....

DRAWING THE LINES BETWEEN ARCHITECTS ... - In the realm of construction and urban planning, architects play a pivotal role that goes far beyond what meets the eye. However, a prevalent misconception has blurred the lines between their responsibilities and those of other professionals, leading to the emergence of rogue practitioners. In this blog post, we will explore the common misunderstandings surrounding the role of architects and delve into the consequences of these misconceptions.The Architect's Canvas: Beyond Design:Architects are ....

WAITING FOR BUYERS IS NOT A STRATEGY. - Sitting back in your office and waiting for buyers to come to you is becoming obsolete. In today's competitive market, where the pace of transactions is as rapid as ever, real estate professionals need to adopt a more proactive approach to connect with potential buyers.   One powerful tool that has been transforming the game of proactive outreach is the Real Estate Database (RED) at www.RealEstateDatabase.net. This tool empowers you as a real estate agent or developer to upload all y ....

NOT EVERYONE CAN BUY OR BUILD A HOUSE. - Have you ever found yourself wondering why developers aren't constructing houses tailored for low-income earners? The answer lies in a simple economic reality, the cost of materials and land often surpasses what those with modest incomes can afford. In a world where housing demand outstrips supply, developers prioritize projects that cater to a higher income spectrum. This blog aims not to discourage the dream of homeownership but to shed light on the practicalities of achieving it, especially f ....

FAILING TO SALE A PROPERTY? - Frustration can reach its peak when your property fails to sell despite your best efforts. In a competitive real estate market, finding the right platform to showcase your property is crucial. That's where the Real Estate Database (RED) comes in, offering a game-changing solution to make selling your property easier, faster, and more cost-effective.The Power of RED.The Real Estate Database (RED) stands out as a beacon of hope for property owners and real estate agents alike. Unlike traditional p ....

WHAT DO YOU NEED TO START BUILDING A HOUSE? - Building a house is a significant undertaking that requires careful planning and consideration. In Uganda, a country known for its diverse landscapes and vibrant culture, the process of constructing a home involves several key steps and considerations. Whether you're a first-time homeowner or an experienced builder, understanding the essentials is crucial. In this guide, we'll explore the fundamental elements you need to start building a house in Uganda.1. Land Acquisition:The first step in buil ....

THE LATEST LISTINGS PAGE ON THE RED - Staying informed about the latest property listings is essential for those in search of their dream home or investment opportunity in Uganda. One platform that has taken this to a new level is the Real Estate Database (RED), offering a dedicated Latest Listings Page that showcases an extensive collection of new properties from various agents, locations, and price points.   The Latest Listings Page can easily be accessed by clicking on the white "bell icon" at the top-left of the RED plart ....

2024 IS HERE, NOW WHAT? - As the calendar turns its pages to 2024, the real estate market in Uganda stands at a crossroads, presenting both challenges and opportunities for real estate agents. The industry has always been dynamic, influenced by economic trends, government policies, and global events. In this blog post, lets explore the current state of the real estate market in Uganda and discuss the strategies that real estate agents can adopt to thrive in 2024.1. Market Trends and Insights:Understanding the current mar ....

HOLD ON! LET'S TAKE A CLOSER LOOK AT 2023. - Its not true that 2023 has been an easy year for the real estate industry, however the Real Estate Database (RED) has emerged as a trailblazer, introducing a slew of groundbreaking initiatives in 2023. Let's together take a closer look at how these real estate initiatives  and innovations in 2023 are reshaping the industry and providing unprecedented opportunities in 2024 for real estate professionals, investors, and buyers.1. Real Estate Blogs: A Wealth of Knowledge and Entertainment. ....

REAL ESTATE IS MOVING FROM 2023 TO 2024. - As we bid farewell to 2023, the real estate landscape is evolving at a pace never seen before. Technological advancements, shifting demographics, and global events have reshaped the way we buy, sell, and invest in property. As we step into 2024, it's essential to reflect on the trends that defined the past year and prepare for the exciting changes that lie ahead. Trends that Defined 2023.   1. Affordability trend.   Affordability remains a pivotal factor shaping the local real esta ....

2024 IS THE YEAR REAL ESTATE IS EXPECTED TO THRIVE. - As we step into the promising year of 2024, the real estate landscape in Uganda is poised for unprecedented growth and development. With a combination of favorable factors, including economic stability, infrastructure advancements, rapid urbanization, government initiatives, and foreign investment, the stage is set for the real estate sector to flourish. In this blog post, we will explore the key factors contributing to the anticipated boom in Uganda's real estate market and the opportunities it ....

TOP PROPERTIES OF THE YEAR 2023/2024. - As we bid farewell to another eventful year, it's time to reflect on the ever-evolving landscape of real estate and unveil the properties that captured the hearts and attention of potential buyers. The Real Estate Database (RED) is currently in the best position to provide valuable insights into the preferences and interests of property seekers all over the country. In this blog post, we'll delve into the Top Properties Of The Year 2023/2024, shedding light on the most-clicked listings and the r ....

PREPARING FOR THE YEAR AHEAD. - As the new year dawns upon us, real estate agents find themselves at the forefront of an ever-evolving industry. The real estate market is dynamic, shaped by economic trends, technological advancements, and shifting consumer preferences.   To stay ahead of the curve and make the most of the opportunities that lie ahead, real estate agents must be proactive in their approach to business. In this blog post, we'll explore key strategies and considerations to help you prepare for the year ahe ....

WHAT WILL KAMPALA LOOK LIKE IN 2030? - As the sun rises on the first of January 2030, we stand on the brink of a new decade, the cityscape of Kampala, the vibrant capital of Uganda, like any other city is poised for a transformation that could reshape its skyline, infrastructure, and quality of life.   The year 2030 is not so far away from today, however,  anticipating the future of Kampala involves envisioning a city that not only addresses current challenges but also embraces innovation, sustainability, and inclusivity. ....

INTRODUCING THE RED PROPERTY MAP - We are excited to unveil our latest project, the "RED Property Map," a groundbreaking initiative that seamlessly integrates property listings from Real Estate Database (RED) into the widely acclaimed Google Maps platform. Mapping Excellence with RED Property Map.The RED Property Map uses Google Maps to provide buyers with an alternative way to explore property listings based on geographical locations. By harnessing the power of mapping technologies, we aim to redefine the way you discover and en ....

OPEN HOUSES ARE PIONEERING A NEW ERA IN UGANDA. - Open House in the RED context typically refers to an event during which a property is available for public viewing by potential buyers. It is a scheduled date when the property is open to the general public for mass viewing, and interested individuals can walk through the space to gain a better understanding of its layout, features, pricing options and overall condition.The Real Estate Database (RED) now empowers its subscribers to schedule, organize and promote Open Houses as a marketing strate ....

UNVEILING THE SECRETS OF FINDING AFFORDABLE PROPERTIES. - In an era dominated by technology, the quest for affordable properties has evolved from traditional methods to a digital revolution. The Real Estate Database (RED) has emerged as a game-changer, empowering prospective buyers to explore a vast array of properties at their fingertips. This blog delves into the dynamics of how everyone can now uncover affordable properties online through the lens of the Real Estate Database.The Rise of Online Property Search:Gone are the days of flipping through ne ....

DID YOU KNOW THAT REAL ESTATE AGENTS ... - Beyond the familiar image of professionals helping you buy or sell a home, there's a wealth of knowledge and intricacies to explore. Join us as we unravel the lesser-known aspects of real estate agents with intriguing facts about them   1. Did you know that real estate agents undergo extensive training?Real estate agents often complete rigorous training programs to improve efficincy. This training includes learning about real estate laws, market trends, negotiation strategies, and ethical ....

A CALL FOR PROFESSIONALISM IN REAL ESTATE. - I recently posted a blog titled "The challenge of dealing with sellers who are in no hurry to sell", This piece garnered a response from John Bigyemano, a person with vested interests in the real estate sector. Below are his thoughts on the subject, primarily emphasizing the need for professionalism, self-regulation, licensing, and training in the real estate industry:   -------------------------   I recently read your content about sellers not being under pressure to sell, and I p ....

I NEED A HOUSE NEAR THE ROAD. - Finding the perfect rental home can be a thrilling yet challenging endeavor. As potential tenants embark on the house-hunting journey, they often express a preference for a residence "near the road." While this statement may seem straightforward, the reality is that the interpretation of proximity to the road can vary greatly between renters and agents. I have thus observed that this divergence in perspectives often leads to disagreements and misunderstandings during the house-hunting process.Th ....

BUYERS WHO DO NOT KNOW WHAT THEY WANT. - Dealing with property buyers who are unsure of their preferences can be a challenge for real estate professionals. Whether they are first time buyers or seasoned investors, some few individuals enter the market without a clear vision of what they want in a property. As a real estate agent, understanding how to navigate this uncertainty is crucial for providing valuable guidance and ultimately securing a successful transaction.   It's interesting to note that a significant majority of prop ....

WHAT I WISH I DID AS A NEW REAL ESTATE AGENT. - Embarking on a career as a female real estate agent is an exciting yet challenging journey. As a new agent, I quickly learned that success in the real estate industry is not just about closing deals but also about building lasting relationships and mastering the art of communication.   Reflecting on my early real estate days, there are several key aspects I wish I had focused on from the start. In this blog, I'll share valuable insights and advice for new real estate agents to help set th ....

HOW TO DEAL WITH FAILURE. - Embarking on a career in real estate can be both thrilling and challenging, especially for first-time agents. While the industry holds vast potential for success, it also comes with its fair share of obstacles. One such obstacle is the inevitability of facing failure. Whether it's a lost deal, a rejected offer, or a difficult client, setbacks are an inherent part of the real estate journey. Learning how to deal with failure is crucial for not only surviving but thriving in this competitive field ....

HOW TO EVICT A TENANT LAWFULLY - Renting out property comes with its challenges, and there may be situations where a landlord needs to terminate a tenancy. However, it's crucial to adhere to the legal procedures outlined in The Landlord and Tenant Act 2022 to ensure a smooth and lawful eviction process. This blog aims to guide landlords through the legal steps involved in evicting a tenant in compliance with the Act.1. Vacation of Premises on Termination of Tenancy.When terminating a tenancy in accordance with The Landlord and ....

SECURITY DEPOSIT, WHAT DOES THE LAW SAY. - Renting a property involves various legal aspects to protect both landlords or property managers and tenants. One crucial element is the security deposit, a sum of money paid by the tenant to secure the performance of their obligations during the tenancy. In this blog post, we'll delve into the legalities surrounding tenant security deposits, focusing on the key provisions outlined in The Landlord and Tenant Act 2022.1. Limitations on the Amount of Security Deposit.According to the law, a landlo ....

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Mansion for sale in Munyonyo
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