Estate agents commissions

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This topic contains 39 replies, has 17 voices, and was last updated by Profile photo of Anonymous Anonymous 10 years, 6 months ago.

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  • #51816
    Profile photo of Anonymous
    Anonymous
    Participant

    Partly because the property market is slow is surely due to the horrendous commission some estate agents take. I reckon if I am to sell my property at a realistic price, I will end up with a profit of a few hundred euros, if I am lucky,and the agents will end up with over 35.000!!
    All I can see that they ( not all ) are doing is to put your property on a database together with thousand of others, sit back and do very little, if anything, instead of going out to promote your property. They even want you to write the description and provide them with photographs and floor plans.So at the end of the day, what are you paying for, what service are you given and how can they justfy their charges?

  • #62181
    Profile photo of Anonymous
    Anonymous
    Participant

    Quite simply they can’t. This comes from the experience we ourselves have had where the large agents in Puerto Banus were paid 59,000euros in commission for the apartment that we were buying that has never been built! We are just one of many this has happened to on our revoked licence apartments.

    As for the work they do to promote the sale of properties, once the initial “flurry” cools off they do diddly squat.The UK is no different IME.

  • #62185
    Profile photo of Anonymous
    Anonymous
    Participant

    @laggen wrote:

    what are you paying for, what service are you given and how can they justfy their charges?

    Ask them outright! Ask them exactly how they intend to market your property. Ask them to justify their commission. Get it all in writing. Negotiate on the commission charges. Tell them that the amount of commission you are prepared to pay them will decrease week on week the longer they don’t sell it. That should concentrate their minds. Everything in this life is negotiable.

  • #62200
    Profile photo of Anonymous
    Anonymous
    Participant

    I am a Spanish estate agent and I am about to stick my head above the parapet and say something that I will probably regret.

    I accept that in this unregulated market many agents are rogues and callous liars. However, I ask everyone to accept that at least some agents are hardworking and honest.

    At this point, I suggest something that will almost certainly attract a stream of criticism – if not abuse. I suggest that buyers and sellers often get the agents that they deserve.

    Surely, we must all accept some of the responsibilty for our decisions?

  • #62208
    Profile photo of Anonymous
    Anonymous
    Participant

    @Claire wrote:

    Quite simply they can’t. This comes from the experience we ourselves have had where the large agents in Puerto Banus were paid 59,000euros in commission for the apartment that we were buying that has never been built! We are just one of many this has happened to on our revoked licence apartments.

    As for the work they do to promote the sale of properties, once the initial “flurry” cools off they do diddly squat.The UK is no different IME.

    HOW MUCH???!!!!!
    59,000 EUROS ?!!

    Good grief, Claire. Were you buying a whole block of apartments?
    Do you mean that this is a “deposit” you paid to the agent as surely, this cannot be a “commission”?
    If someone was paying me 59k in commission, I would do everything I possibly could as that would be a client to take care of, for sure.
    However, even when a sale pays me 1 or 2k in commission, I still strive to look after my clients as most people buy numerous properties in their lifetimes.
    Furthermore, as I have said before, my situation is a little different than “large, mainland agents” as I live on a small island and my buyers become my neighbours and friends.
    But even so, it is easy to see why some agents do this job if they get 59k a time!

    Seriously – and I have said this before – I hope you get sorted on this.

    Stewart

  • #62210
    Profile photo of Anonymous
    Anonymous
    Participant

    @Rawlins wrote:

    I am a Spanish estate agent and I am about to stick my head above the parapet and say something that I will probably regret.

    I accept that in this unregulated market many agents are rogues and callous liars. However, I ask everyone to accept that at least some agents are hardworking and honest.

    At this point, I suggest something that will almost certainly attract a stream of criticism – if not abuse. I suggest that buyers and sellers often get the agents that they deserve.

    Surely, we must all accept some of the responsibilty for our decisions?

    If your head is still on your shoulders……

    I turned down 2 new listings this week as the vendors were simply asking too much for the sale of their property.
    So…..off they have gone to a “large” agent and put it on with them at a ridiculously inflated price.
    So, ref your post above….it certainly has some truth to it….

    Stewart

  • #62217
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Stewlanz,
    Yes I am being serious and no we did not buy the entire block just one apartment….that is if it had been built! ๐Ÿ™

    In the presence of our then lawyers, we were told that IF the developers were to give us back our (just under) 119,000euros, ie 30% of pp,15%of the pp had been paid in commission to “awful estates.” They denied this and said it was 7-9%!!! The developers reiterated 15%. We are not the only ones to have been told this.

    By the way, consider your head well and truly blown off. ๐Ÿ™‚ We did not deserve the disgusting treatment that we have received from our then lawyer or the developers or the agents. ๐Ÿ˜ˆ ๐Ÿ˜ˆ

  • #62220
    Profile photo of Anonymous
    Anonymous
    Participant

    @Rawlins wrote:

    I am a Spanish estate agent and I am about to stick my head above the parapet and say something that I will probably regret.

    I accept that in this unregulated market many agents are rogues and callous liars. However, I ask everyone to accept that at least some agents are hardworking and honest.

    At this point, I suggest something that will almost certainly attract a stream of criticism – if not abuse. I suggest that buyers and sellers often get the agents that they deserve.

    Surely, we must all accept some of the responsibilty for our decisions?

    UNBEELIEVABLE โ— โ— โ— But I doubt whether you will receive any abuse from the genuine people using this forum – just the comments that YOU DESERVE ๐Ÿ‘ฟ ๐Ÿ‘ฟ ๐Ÿ‘ฟ
    The people I dealt with regarding my apt. have abused my decisions. I am NOT responsible for their behaviour. But they will be. ๐Ÿ˜‰ ๐Ÿ˜‰

  • #62223
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Suzanne,

    Am I right in thinking you emailed News 24 about the lawyers acting for the developer and not you? Well done if you did. I did the whole lawyer bit but it was excluded. ๐Ÿ™

  • #62226
    Profile photo of Anonymous
    Anonymous
    Participant

    @Claire wrote:

    Hi Suzanne,

    Am I right in thinking you emailed News 24 about the lawyers acting for the developer and not you? Well done if you did. I did the whole lawyer bit but it was excluded. ๐Ÿ™

    Hi Claire
    Nice to hear from you. Yes, I did, but wished they’d spent longer on the whole problem in Spain, rather than just skimming the surface. Sorry they didn’t include your item. I’m sure it would have helped, and generated more response. We need an hour’s programme at least – just for starters โ—

  • #62228
    Profile photo of Anonymous
    Anonymous
    Participant

    This comes from the experience we ourselves have had where the large agents in Puerto Banus were paid 59,000euros in commission for the apartment that we were buying that has never been built!

    In the presence of our then lawyers, we were told that IF the developers were to give us back our (just under) 119,000euros, ie 30% of pp,15%of the pp had been paid in commission to “awful estates.” They denied this and said it was 7-9%!!! The developers reiterated 15%. We are not the only ones to have been told this.

    DID YOU PAY 59.000 โ‚ฌ JUST IN REA COMISSIONS FOR AN APARTMENT THAT HAS NEVER BEEN BUILT???? There is a very thin line (if any) between what’s described above and a criminal liable practice…

    Cesar

  • #62229
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Cesar
    We personally did not hand over the money to the REA. The developers paid the commission from our deposit. I understand, as a general rule, REA ‘s get their commission within 21 days of the signing of the pp contract. This was told to me by an employee of another large agent from the CDS. The lawyer of the developers told our lawyer this was the situation.(15%) We confronted the agents the very next day and suggested, under the circumstances, they should reimburse us that commission. They had said they wanted to help us,..Quote “because they care”….but obviously not that much, as we have heard nothing from them since that meeting 1year ago!!

    You can perhaps understand why I get on my soap box so often! ๐Ÿ˜‰

  • #62232
    Profile photo of Anonymous
    Anonymous
    Participant

    I can confirm that on large developments an agent would normally expect to be paid commission by the developer immediately after the deposit contract was signed. I can also confirm that the commissions offered to agents for selling to foreign buyers are significantly higher than the commissions offered to Spanish agents for selling identical properties to Spanish buyers. Such is marketing.

  • #62267
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    Anonymous
    Participant

    Hi Rawlins, Could you explain what difference it makes wheter your client is foreign or Spanish? Does not make sense to me why you would get more commission if the buyer is foreign. It is the same property …..

  • #62268
    Profile photo of Anonymous
    Anonymous
    Participant

    I’m beginning to understand where do some of the CDS building problems come from…

    The REA gets a 15% commission from a developer???? from total sales???? that’s insane!!! numbers just don’t match…

    Usual net profit of a development for a promoter before taxes (I’m talking about Asturias & northern Spain of course) is more or less 25% of sales minus costs, never less of that or the operation wont be profitable.

    Let’s see a very general and simple example in numbers:

    Where:

    Total sales minus building cost minus promoter’s profit equals land price.

    Let’s say a little promotion on a 100 square meter plot where you can build ground floor, three living floors plus an attic (50m2 of business premises, two flats of 70m2 and one in a two store of 120 m2 (rest is common services area)

    Gross building costs of a medium quality promotion is about 600 Euro per m2
    Additional costs (architect, licenses, insurances, BGs, financial costs, marketing and REA –usually only 2% from the promoter, I’m not counting situations where buyer pays directly and additionally to the REA)- are about a 30% of building costs.
    You may sell for an average of 3,000.00.- Euro per square meters of living space in the city center of an average town in northern Spain, and about 2,000.00.- Euro per square meter of bussiness space.

    So we have:
    Building cost = 270,000.00 Euro = 600 x 450 meters (complete volume of the building)
    Additional costs = 81,000.00 Euro = 270,000 x 30%
    Total sales houses = 780,000.00 Euro = 3,000 x 260 m2
    Total sales business premises = 100,000.00 Euro = 2,000 x 50 m2
    Expected promoter’s profit = 132,250.00 Euro = (880K – 270K – 81K) x 25%
    Land value = 396,750.00 Euro = 780K + 100K – 270K – 81K- 132,250

    But if you pay the REA and marketing services the 15% of the total selling price instead of the 2% of the initial building costs that makes 132,000.00 Euro extra costs!!!! which is more or less all the profit the promoter should get from the whole thing!!!!!

    Where is the hidden ‘trick’? Easy…. in the land value… and just because the given parameter (plot price is equal to total sales minus building cost minus promoter’s profit) it’s only valid when you act correctly and legally and you pay the full value of what you are purchasing which is a plot of land suitable for building and with all services in place… and that costs lots and lots of money…

    But, what happens when you buy a piece of country, not building-suitable plot??? sure, it’s much more cheaper (sometimes like 80% less)

    Then, a little ‘hocus pocus’ here and a little dark money there and, TADA!!! we do have now a splendid building-suitable plot (costing us like country land of course) And as we have saved lot’s of money we do not mind spending a little extra money to a REA willing to ‘convince’ innocent purchasers that we are excellent people (and it’s much better if they are ‘guiris’, sure, they will be easy to convince as they aren’t aware of their rights)

    But someday, someone finds out and starts looking trough, and starts denying licenses, threatens to demolish buildings…

    Sounds familiar??? Yes, I know, I’m being ‘acid’ and sarcastic again… I’m sorry

    Cesar

  • #62269
    Profile photo of Anonymous
    Anonymous
    Participant

    Acid and sarcastic? More like extremely perceptive!

    And I don’t think it’s just CDS, it’s happening all over Spain now.

  • #62271
    Profile photo of Anonymous
    Anonymous
    Participant

    Great post Cesar.

    It depresses me to report that (so Iโ€™m reliably informed by developers) some of the biggest agents working in Almeria, Murcia and South Costa Blanca earn commissions of between 20 and 25%. They wouldnโ€™t get out of bed for a measly 15%. These are seriously aggressive sales organisation, and they are still very dominant.

    Mark

  • #62272
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant
    laggen wrote:
    Partly because the property market is slow is surely due to the horrendous commission some estate agents take. I reckon if I am to sell my property at a realistic price, I will end up with a profit of a few hundred euros, if I am lucky,and the agents will end up with over 35.000!!
    All I can see that they ( not all ) are doing is to put your property on a database together with thousand of others, sit back and do very little, if anything, instead of going out to promote your property. They even want you to write the description and provide them with photographs and floor plans.So at the end of the day, what are you paying for, what service are you given and how can they justfy their charges?

    Can I ask, how much are you looking to sell your property for and what commission rate this agency is using?

    You should epxect several things from the agent.
    how will they market your property? magazines/newspapers/internet?
    Do they inform other area agents of their new properties?
    Have they offered suggestions to help improve the saleability of you prop?
    etc?

  • #62275
    Profile photo of Anonymous
    Anonymous
    Participant

    @laggen wrote:

    Hi Rawlins, Could you explain what difference it makes wheter your client is foreign or Spanish? Does not make sense to me why you would get more commission if the buyer is foreign. It is the same property …..

    My firms works with Spanish and British buyers and sellers. We charge identical commissions – usually between 3 and 2.5 percent. We have never discriminated and never will.

    We are sometimes offered the ‘opportunity’ to market large off-plan developments we are told that commissions paid will vary between foreign and national buyers. This seems to be standard practice.

    However, our firm specialises in resale villas and the world of speculative off-plan sales is something we have always steered away from.

  • #62276
    Profile photo of Anonymous
    Anonymous
    Participant

    @mark wrote:

    some of the biggest agents working in Almeria, Murcia and South Costa Blanca earn commissions of between 20 and 25%.

    Would this include the one advertised by Clare Sweeney?

  • #62286
    Profile photo of Anonymous
    Anonymous
    Participant

    @tilly wrote:

    Acid and sarcastic? More like extremely perceptive!

    And I don’t think it’s just CDS, it’s happening all over Spain now.

    No… I do not believe it is happening all over Spain. It is simply widespread in that tiny part of Spain popular with foreign buyers – the Mediterranean coastal strip.

  • #62287
    Profile photo of katy
    katy
    Spectator

    I don’t know ANY agent based on the CDS who charges more than 7.25% infact if they are not in the network they all charge 5%. Some of the biggest commissions earn’t were by the old system of the spanish runners when they asked the seller “how much do you want for the sale” their logic being if some foreigner came along they could ask a high price and anything over the amount the owner wanted was theirs. Unfortunately, this practice has been used by some of the english agents but it happens mainly in rural areas.

  • #62289
    Profile photo of Anonymous
    Anonymous
    Participant

    @katy wrote:

    I don’t know ANY agent based on the CDS who charges more than 7.25% infact if they are not in the network they all charge 5%. Some of the biggest commissions earn’t were by the old system of the spanish runners when they asked the seller “how much do you want for the sale” their logic being if some foreigner came along they could ask a high price and anything over the amount the owner wanted was theirs. Unfortunately, this practice has been used by some of the english agents but it happens mainly in rural areas.

    Yes, this system of runners is very much alive today and in rural areas pre-dates the commission based estate agency system as we know it.

    Many of the properties offered by British agents claiming to be buyer’s agents are in fact supplied through runners. These agents often claim that they only charge the buyer commission. But in reality the runner is charging the seller a large uninvoiced commission.

    In my experience runners are usually government workers who have the opportunity to meet the public in their job and are free to work for themselves in the afternoons. Their moonlighting income is always undeclared to the taxman.

    A purchase involving one of these runners will almost always involve black money and their presence in an operation is often the only reason that black money is demanded by the seller.

  • #62295
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi everyone – sorry it has been a long while since I raised my head above the parapet. After a long absence I decided to go back to being an estate agent

    One of the things an estate agent should do if they are selling a new development is to make sure that the development has an actual building licence. You may or may not be aware but the agent is jointly liable for any claims made by the developer – hence a good agent will always check these things out and other items such as taxes been paid by the developer (everyone dealing with any other business – even buyers, have the right to request a tax certificate from the developer to prove taxes have been paid).

    As for what an agent SHOULD DO to help you sell your house

    List your house in a professional manner, explaining what the costs of sale will be, the commissions that will be charged, and also put you in touch with experts such as financial advisors and abogados if you dont already have them.

    Advertise locally and where possible internationally
    Put it onto their own website
    Advertise it on other websites – thinkspain, compraventa.com, Kyero, segundamano and manymore spring to mind. Sure it costs money to do this but dont we get paid a commission to sell a house.
    If they are worth their salt they should have a news letter and a database of potential buyers – they should send info out on a weekly or by weekly basis to these people.
    Do they have a magazine or property leaflet? They should include your property in this
    Obviously advertise it in their windows

    We also go out and about in the local markets literally asking people if they are interested in buying a property. It works too.
    Any specific proeprties of interest we email a database of other agents we have, are signed up to inmolink multi lisiting service which gives access to over 400 other websites, and allows us to email these agents as well as 300 investor clients.

    If I can think of any other ways we can find clients to buy property – we try it. If it works great we keep it going, ig it doesnt we stop and try again later. But one thing we dont do is sit in an office waiting for someone to come in. Even in a flat market like now it is possible to find buyers.

    As for sellers. they have to be realistic in their expectations, but surely this is also the job of the agent. I believe we are one of the few in our area that give valuations (based on the bank metrics) so if a property is over valued we have a duty to tell the client. Likewise if it is under valued the client needs to know so they can get the best deal.

    There is so much your estate agent can do for you – and whether they charge 3% or 30% they should still go out of their way to help you – they earn enough money from you.

    Hope this helps and the best way to find out is always to ask the agent what they will do for you. Any decent agent will be more than happy to explain it to you and be open about their carges whether buyer or seller.

    Best wishes

    Vince

    These are just soem of the things I can think of.

  • #62296
    Profile photo of Anonymous
    Anonymous
    Participant

    It’s great to hear from you again Vince. I wish you the best of luck. You are a genuine guy. ๐Ÿ™‚

    Claire.

  • #62307
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant
    katy wrote:
    I don’t know ANY agent based on the CDS who charges more than 7.25% infact if they are not in the network they all charge 5%. Some of the biggest commissions earn’t were by the old system of the spanish runners when they asked the seller “how much do you want for the sale” their logic being if some foreigner came along they could ask a high price and anything over the amount the owner wanted was theirs. Unfortunately, this practice has been used by some of the english agents but it happens mainly in rural areas.

    all the INnewtork agents start at 7,5%. And progressively lower the commission as the price gets higher

  • #62310
    Profile photo of katy
    katy
    Spectator

    Correct, I was basing it on the commission I was charged. One thing that did annoy me was that when they brought a viewer there was never any feedback, none of the agents knew where the place was. surely with such high commissions they could show a bit more professionalism. A few times I had to get the car out to find them!

  • #62313
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    Did they manage to sell your property or is it still on the market? If it is, ask them what are they doing to market it.
    how many people have viewed it?
    Why did they not buy it? client feedback?

    Remember with the INnetwork if you not happy with a current agent, switch it to another. You’ll get a same coverage and maybe a better service!

  • #62324
    Profile photo of Anonymous
    Anonymous
    Participant

    That’s not strictly true. If you’re on with the IN network it’s best to be with the 2 biggest agents in the network. They generate more leads than the rest put together, and as their salesmen are on commission only they will always show their own listings on the network before anyone else’s.

  • #62327
    Profile photo of Anonymous
    Anonymous
    Participant

    I had my property listed with IN network and they where (in my opinion) worse than useless, there sales agents who I was actually listed with, sold there own privately owned properties first (same complex), obviously cheaper than mine as they didn’t pay the horrendous 7.5% fee ๐Ÿ‘ฟ . Then other members who brought clients to view, deliberately steered the buyers away from my property and into off plan ๐Ÿ˜•
    Better to use the smaller independent agents, who have smaller commisions and dont seem so obsessed with pushing off plan.

  • #62345
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant
    Bert Preast wrote:
    That’s not strictly true. If you’re on with the IN network it’s best to be with the 2 biggest agents in the network. They generate more leads than the rest put together, and as their salesmen are on commission only they will always show their own listings on the network before anyone else’s.

    The 2 biggest agents on the INnetwork are VIVA and ADH. As quite alot of people have mentioned here from their own experience, off-plan seems to be the properties that they push the most. So what is the motivation to place your property with them. Are they not going to rely on other INnetwork agents to sell their properties. Is that not why they put all the listings they get on the IN (with IN comissions)?

  • #62347
    Profile photo of Anonymous
    Anonymous
    Participant

    As I said, those two do the most marketing, which means the most potential buyers – and not just those looking for off-plan. Any IN agent is always going to show their own properties before anyone else’s. I’m not endorsing either of the two agents or the IN itself, but with the market as it is it can’t do any harm to have your property in as many places as possible.

  • #62348
    Profile photo of Anonymous
    Anonymous
    Participant

    Just for educational purposes โ€“ a few more specifics as to how the IN network operates. (Disclaimer โ€“ it has been over 2 years since I had anything to do with the IN Network, so the terms may have changed somewhat since then).

    Lets use a 300k euro property as an example. The total commission (7.5%) on this sale would be 22,500 euros.

    Now – if 2 different agencies are involved (one providing the buyer and one providing the property listing) the commission will be split as follows:

    65% of the total commission or 14,625 euros will be paid to the agency providing the buyer.
    30% of the total commission or 6750 euros will be paid to the agency providing the property listing.
    5% of the total commission or 1125 euros will be paid to the IN Network.

    So you see, an estate agency will ALWAYS try to sell their own listings first (so they can make both the 65% sellers commission + 35% listing commission) โ€“ and only resort to someone elseโ€™s listing as a last resort. Many times, even if there is a better property at a better price listed by another company, they will push their own listing, as it will mean considerably more commission.

  • #62350
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    i believe its now
    55% to the buying agent
    40% to the vending agent
    5% to the IN

    If you sell your own IN listing you get 100%

    They changed it because people were selling only their own listings. The changes were made to motivate people to use the IN more (& thus IN or more likely to get a cut)

  • #62526
    Profile photo of Anonymous
    Anonymous
    Participant

    We charge 3% on urban properties and 5% negotiable on rural properties.
    We do not agree with high commissions, but do appreciate that some companies offer free inspection trips, have large ads in all the glossy foreign property magazines, have U.K. offices to staff as well as in Spain, have stands at all the property exhibitions, have a fleet of cars and salesmen to escort potential clients during their visit, and that all this has to be paid for..
    Is even 3 or 5% too much? No, we aren’t making any more than a living. What is the profit margin of a jeweller, clothes shop, antique dealer? How much are the fees for auction deals, and vehicle commission sales etc.? But you will say a property is far more expensive,which is true, but the number of sales is far lower then in the case of low value items. We cannot get exclusivity contracts with vendors. We know that some potential clients see our adverts., then down load them from our website and go looking for the properties to buy privately. Some do go with us, tell us they do not like the property, then do a deal behind our backs. The money we have spent advertising these properties must be paid for vรญa successful sales
    It would be nice if the rogues were forced out of business, and that decent agents are treated fairly by the property buyers and sellers.

  • #62661
    Profile photo of Anonymous
    Anonymous
    Participant

    @Rusticasa wrote:

    We charge 3% on urban properties and 5% negotiable on rural properties.
    We do not agree with high commissions, but do appreciate that some companies offer free inspection trips, have large ads in all the glossy foreign property magazines, have U.K. offices to staff as well as in Spain, have stands at all the property exhibitions, have a fleet of cars and salesmen to escort potential clients during their visit, and that all this has to be paid for..
    Is even 3 or 5% too much? No, we aren’t making any more than a living. What is the profit margin of a jeweller, clothes shop, antique dealer? How much are the fees for auction deals, and vehicle commission sales etc.? But you will say a property is far more expensive,which is true, but the number of sales is far lower then in the case of low value items. We cannot get exclusivity contracts with vendors. We know that some potential clients see our adverts., then down load them from our website and go looking for the properties to buy privately. Some do go with us, tell us they do not like the property, then do a deal behind our backs. The money we have spent advertising these properties must be paid for vรญa successful sales
    It would be nice if the rogues were forced out of business, and that decent agents are treated fairly by the property buyers and sellers.

    Estate agents in the UK are charging between 1% and 1.5% commission at the moment. How would you explain/justify the difference between that and 3%-5% you charge? Everything you cite above applies equally there and yet they seem to manage to make a living ๐Ÿ˜‰ Many estate agents here don’t even have an office never mind qualifications and they don’t prepare or mail out property details either.

  • #62662
    Profile photo of Anonymous
    Anonymous
    Participant

    ๐Ÿ˜•
    Everyone knows spanish agents charge more commission than english ones. But lets be honest, when you come to spain to find a property, on a subsidized trip or not, you look in a completely different way to back in england.

    When you want to move in england, you simply drive to where you want to be, and take the number of the “For Sale” board from an agent on the house you like the look of. You have done all the work in finding what you want really!!!

    Spanish agents spend alot of money on exhibitions (these are not cheap) and drive you around to places and properties you may never have known existed. The running costs are significantly higher, so if fell that 5% seems reasonable, which is what spanish agents themselves charge.
    It takes money to bring the clients to you in spain, via website, agents in england etc, so the rate has to be higher, or you would not sell.

  • #62672
    Profile photo of Anonymous
    Anonymous
    Participant

    I was a qualified estate agent in the West End of London and now sell property in Valencia. Our commissions are higher in Spain than the UK – typically between 4-5 per cent and shared between buyer and seller.

    However, the amount of work involved in each sale is also considerably greater in Spain. In London, we often had properties on a sole agency or joint sole agency basis and once a sale was agreed we did little more than wait for a cheque from the solicitor.

    However, in Spain all visits must be accompanied; many British buyers expect to be picked up from their hotels; Spanish sellers are often reluctant to leave keys; Spanish sellers expect the agent to handle all registrial and notarial aspects; British buyers often require considerable pre-sales support to help them obtain the necessary tax identity numbers, bank accounts, and mortgages; British buyers also expect a great deal of after-sales care – often lasting years; and rural properties are often in a semi-abandoned state from the legal and physical point of view.

    Each of these services is necessary but also time-consuming. Yes, we make a living but I don’t see any small agents enjoying the high life.

  • #62745
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    Rawlins a question.

    I knew someone who had both work in the UK and Spain as an agent.
    They also said that one of the reasons for the higher commission was due to the fact that ” for every property in the UK there are 10 buyers whereas in here (spain) there are 10 properties for every buyer”.

    As you have experience in both markets, would you say this holds any truth?

  • #62783
    Profile photo of Anonymous
    Anonymous
    Participant

    @fuengi wrote:

    Rawlins a question.

    ” for every property in the UK there are 10 buyers whereas in here (spain) there are 10 properties for every buyer”.

    As you have experience in both markets, would you say this holds any truth?

    No, I wouldn’t agree that there are 10 properties for every buyer.

    But I will say that Spanish sellers are usually less motivated to sell than British buyers. This is because they are often selling a second home, and they are not generally selling because they need to sell. In fact, I find that Spanish sellers never confess to being in a hurry to sell.

    Also Spanish estate agents are usually more passive than British agents. That is to say they do not generally tell a client how much their property is worth and decline to market it for a much higher price. Instead, Spanish agents will ask a seller how much they want and if the figure is too high they will leave it to slowly turn yellow in the shop window until the owner decides to reduce price – if ever.

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