The Scary Truth About Gibraltar’s Estate Agent Industry

When almost anyone can advertise a property online, how can homeowners distinguish between an agent who can list their property and one who knows how to sell it? In a challenging market, the difference can be significant.

Selling a property can be daunting. For most homeowners, it represents one of the largest financial transactions of their lives. There may be another property to buy, a move abroad to organise, a mortgage to settle or a particular sum that needs to be achieved.

With so much at stake, choosing the right estate agent should be one of the most important decisions a seller makes.

Yet there is an uncomfortable reality in Gibraltar's property market. Getting a property onto the market is relatively straightforward. Selling it well requires considerably more.

A listing on a property portal, a few photographs and an asking price do not, by themselves, constitute a selling strategy. The real question is whether the agent has the expertise, judgement and commitment to turn that listing into a successful transaction.

And that is where the differences between estate agents can become apparent.

The difference between listing and selling

When choosing an estate agent, it is tempting to be persuaded by an ambitious valuation, promises of extensive exposure or the reassuring confidence of someone who appears certain they can achieve the price you want.

But an asking price is only a starting point. What matters is whether it is supported by evidence and whether the proposed marketing strategy gives the property the best possible chance of attracting the right buyer.

Unfortunately, some homeowners discover only after instructing an agent that winning their business and selling their property are two very different skills.

The property goes online. Weeks pass, then months. Viewings are limited, feedback is vague and the explanations begin.

The market is quiet. Buyers are cautious. Interest rates are affecting decisions. Perhaps it is time to reduce the price.

Sometimes these explanations are entirely justified. No estate agent can manufacture demand where none exists, and even a well-priced, beautifully presented property can take time to sell.

But when explanations replace action, homeowners are entitled to ask a simple question: what, specifically, is being done to sell my property?

When a challenging market exposes the difference

In a buoyant market, shortcomings can be easier to overlook. Strong demand may generate interest even when a property is poorly presented or priced too optimistically.

A more selective market is less forgiving.

Today's buyers can compare numerous properties online before arranging a single viewing. They can examine photographs, study floorplans, compare asking prices and quickly move on if something does not convince them.

In these circumstances, the quality of the initial marketing matters more than ever.

Consider an agency advertising more than 100 properties for sale. That might suggest an impressive market presence, but the number of listings alone tells us very little about how effectively the business sells them.

A large portfolio is not necessarily a sign of poor performance, just as a small one does not automatically guarantee good service. The important questions concern results, the nature of the properties being marketed and how well each instruction is being managed.

How many properties does the agency successfully sell? How does it approach those that fail to attract interest? And how much attention can each homeowner realistically expect to receive?

For a seller, these are far more useful questions than simply asking how many properties an agent has on its books.

A valuation should be based on evidence, not promises

A professional sale begins long before the first photograph is taken.

A proper market appraisal involves examining comparable completed transactions, competing properties, current demand and the characteristics that make a particular home more or less desirable.

It also requires an honest conversation about the owner's objectives. Is the priority to achieve the strongest realistic price, sell within a particular timeframe or coordinate a purchase elsewhere?

An agent should be able to explain how the recommended asking price has been reached, what evidence supports it and how the property will be positioned against its competition.

An optimistic figure may be appealing when choosing an agent, but an asking price unsupported by the market can have consequences. A property may spend months attracting limited interest before reductions become necessary, losing the valuable momentum that a well-considered launch can generate.

Honest advice is not always the advice a homeowner initially wants to hear. It is, however, the advice they need to make an informed decision.

Presentation is part of the selling strategy

Once the valuation has been established, the property needs to be presented in a way that reflects its genuine appeal.

Professional photography, accurate floorplans, carefully written descriptions and appropriate video content are not simply cosmetic extras. They help prospective buyers understand the property, appreciate its advantages and decide whether it merits a viewing.

Poor photographs can make attractive rooms appear dark or cramped. An inaccurate floorplan can create the wrong impression of a property's size or layout. A vague description can leave important selling points undiscovered.

These are avoidable problems, yet their impact can be considerable when buyers are comparing several homes at once.

Effective marketing also extends beyond producing attractive images. The agent needs to understand the likely audience, select appropriate channels, monitor the response and use feedback to inform the next steps.

If a property is attracting little interest, the answer should not automatically be a price reduction. The first step is to understand why.

Is the price out of line with competing properties? Does the presentation fail to communicate the home's strengths? Is the marketing reaching the right audience? Are the enquiries converting into viewings, and what are viewers saying afterwards?

Without that analysis, a seller is left making decisions without the information needed to make them well.

What happens after an offer matters, too

Even a successful viewing campaign is only part of the process.

When an offer arrives, an agent needs to assess the buyer's position, negotiate effectively, communicate clearly with both parties and help progress the transaction.

An agreed price is a milestone, not the finish line.

The quality of the agent's work throughout this process can influence the likelihood of the transaction completing, the time it takes and the experience of everyone involved.

A good agent should therefore be able to explain not only how a property will be marketed, but also how the sale will be managed from instruction through to completion.

The difference in practice: a recent Richardsons instruction

We saw the consequences of getting the fundamentals wrong first-hand when we recently took over a property that had spent six months with another estate agent without a single viewing.

The owner had taken an understandable view: surely, if somebody wanted to buy the property, they would simply contact the agent advertising it?

Unfortunately, the reality was more complicated.

During our comprehensive market appraisal, several issues became apparent. The previous asking price had not been established through a proper analysis of comparable evidence; instead, the vendor had been asked what price they wanted to achieve.

The advertised floor area was approximately 15% greater than the property's actual size. There was no floorplan to help buyers understand the layout, and the photographs had been taken on a mobile phone.

Individually, these might seem like small details. Together, they created a misleading impression and gave prospective buyers little reason to prioritise the property.

Once Richardsons took over, we reassessed the property and addressed its pricing, presentation and marketing. We were arranging viewings within the first week.

That does not mean every property should sell immediately, nor does one example prove that every previous agent will fall short. It does, however, illustrate an important point: a lack of interest is not necessarily a reflection of the property itself.

Sometimes, the problem lies in how the property has been brought to market.

A different approach at Richardsons

At Richardsons, we believe homeowners deserve a considered, professional approach to one of the most important financial decisions they will make.

We deliberately take on fewer properties so that we can devote meaningful attention to the homes we represent. Our focus is not simply on building a large portfolio, but on achieving results through informed advice, professional presentation and a carefully managed selling strategy.

That begins with a proper appraisal and continues through photography, accurate floorplans, targeted marketing, viewing feedback, negotiation and the progression of the transaction.

As an RICS-regulated firm, we are committed to recognised professional standards and responsible practice. These credentials are part of our approach, alongside the practical work required to bring a property successfully to market.

No reputable agent can guarantee a particular price or promise that every property will sell within a specified timeframe. What a homeowner should expect, however, is a clear strategy, honest communication and an agent who can explain what is being done and why.

Before you instruct an estate agent, ask a better question

The most expensive mistake a seller can make is not necessarily accepting an offer below their expectations. It may be spending months on the market without understanding why the right buyer has not come forward.

Before choosing an agent, ask how the valuation has been established, what the marketing will involve, how viewings and feedback will be managed, and what happens if the initial strategy does not produce the expected response.

Ask about completed sales, not just properties currently advertised. Ask how the agent measures performance and what evidence supports their approach.

Above all, look beyond the asking price they suggest.

The strongest agent is not necessarily the one with the biggest portfolio, the most ambitious valuation or the most confident promises. It is the one who can explain what needs to be done, demonstrate why it matters and put that plan into practice.

If you are considering selling your property in Gibraltar, or your current instruction is not generating the interest you expected, it may be worth taking a fresh look at your property's position in the market.

At Richardsons, we believe that selling property properly starts with understanding what makes the difference.

Because there is a fundamental difference between an agent who can put a property on the market and one who knows how to sell it.