How much commission

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  • #56827
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    Anonymous
    Participant

    I am looking to sell my house in Marbella (around E400,00 mark). Some questions:

    1. What is the going rate to pay an agent and do you pay less if it is an exclusive listing.

    2. Do you think it better to go with an independent agent who lives in the urbanisation and obviously knows the property well or go with one of the big guys who have more exposure.

    3. Would you go all out and list it with all the agents in Marbella?

    Any advice is appreciated.

    Thanks

  • #108804
    Profile photo of Anonymous
    Anonymous
    Participant

    I would list it with as many as possible at an attractive price.

  • #108808
    Profile photo of Anonymous
    Anonymous
    Participant

    @bahiaboyz wrote:

    I am looking to sell my house in Marbella (around E400,00 mark). Some questions:

    1. What is the going rate to pay an agent and do you pay less if it is an exclusive listing.

    2. Do you think it better to go with an independent agent who lives in the urbanisation and obviously knows the property well or go with one of the big guys who have more exposure.

    3. Would you go all out and list it with all the agents in Marbella?

    Any advice is appreciated.

    Thanks

    The first thing is to establish a price in your own head with regard to the price you will get – I recently sold my 3 bed apartment on south costa blanca in an upmarket urb. I gave it to a Finnish estate agent who lives on the urb, the fact that she is advertising into the Scandanavian market is a big plus, I put it up in October had good viewings and had some offers but accepted the one that was close to my asking price which by the way was 30% off what I paid for it. Hope that is of some help!

  • #108807
    Profile photo of angie
    angie
    Spectator

    Good marketing Angela, you did your homework on the Scandinavian connection.

    I think even though the price you received was 30% less than you paid, it could look very attractive compared to what you might get if this Euro problem gets worse involving Spain and further bailouts, what price then for Spanish property? Everything is up in the air and no-one knows for sure 🙄

  • #108810
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @bahiaboyz wrote:

    I am looking to sell my house in Marbella (around E400,00 mark). Some questions:

    1. What is the going rate to pay an agent and do you pay less if it is an exclusive listing.

    2. Do you think it better to go with an independent agent who lives in the urbanisation and obviously knows the property well or go with one of the big guys who have more exposure.

    3. Would you go all out and list it with all the agents in Marbella?

    Any advice is appreciated.

    Thanks

    Hi most agents should charge approx. 5%. Some may try for more.

    Unless this ‘independent’ agent has clients waiting to buy where you are located, what would be the point? they will not have the marketing presence, would be limited in who they collaborate with. Most ‘independents’ are not official agencies (officially registered, tax number, etc…), so less legal security.

    If it was me? I would go with several agencies. One with a strong web presence in english, spanish, dutch, swedish/norwegian. I would then also choose 1 or 2 agencies located on main streets of marbella that seem to have a ‘good’ feel (open, friendly, professional).

    Also I would not give them a price, I would ask them to value the property, and then ask them to explain why? You will find that many agencies (unfortunately9 simply ‘ape’ other agencies, without any real knowledge of the trends/state of the market.

  • #108816
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi bahiaboyz:

    1. We charge 1.75% buyer and seller, this is typical but you might find ‘international’ agents charge more citing higher marketing costs.
    2/3. Go with all of them. You will inevitably end up working with a select few depending on which agents have their portfolio geared towards your type of property. If one agent has a lot of enthuisiasm and you KNOW that they have turnover of this kind of property, exclusivity is not stupid BUT make sure you haggle with them for either a discount on commission or give them a specific timeframe to sell the property, nothing worse than an unmotivated exlusive agent…

    Extra point, by contacting a variety of estate agencys you can get a better idea of the valuation in the market, DONT always believe the agent who gives you the highest valuation, buy by getting several opinions you will have a much better idea of the position of your property in the market.

    Ed

  • #108822
    Profile photo of Anonymous
    Anonymous
    Participant

    @angie wrote:

    Good marketing Angela, you did your homework on the Scandinavian connection.

    I think even though the price you received was 30% less than you paid, it could look very attractive compared to what you might get if this Euro problem gets worse involving Spain and further bailouts, what price then for Spanish property? Everything is up in the air and no-one knows for sure 🙄

    Hi angie,

    That’s one reason I wanted to sell – if Spain reverts back to original currency – property prices will half again. The Scandanavians are the only ones with money – their currency is strong.

    To the original poster – I paid a flat rate of E5000 commission – she wanted E5000 plus E900 taxes but when I didn’t get the original asking price – I got E8,000 below asking price – I said to estat agent she would have to shave off the E900 off her fee or otherwise there was no sale – she did do this.

  • #108975
    Profile photo of Anonymous
    Anonymous
    Participant

    @angie wrote:

    Good marketing Angela, you did your homework on the Scandinavian connection.

    I think even though the price you received was 30% less than you paid, it could look very attractive compared to what you might get if this Euro problem gets worse involving Spain and further bailouts, what price then for Spanish property? Everything is up in the air and no-one knows for sure 🙄

    Hi angie,

    That’s one reason I wanted to sell – if Spain reverts back to original currency – property prices will half again. The Scandanavians are the only ones with money – their currency is strong.

    To the original poster – I paid a flat rate of E5000 commission – she wanted E5000 plus E900 taxes but when I didn’t get the original asking price – I got E8,000 below asking price – I said to estat agent she would have to shave off the E900 off her fee or otherwise there was no sale – she did do this.

  • #108823
    Profile photo of angie
    angie
    Spectator

    I’ve used the same tactic in the UK Angela. When the selling agent submits an offer to me of say 10k or so below asking price, assuming it’s acceptable by me, then I ask that agent to knock a quarter to half a percent off his commission, or round it down by a goodly amount, it’s always worked for me, so well done in Spain 8)

  • #108977
    Profile photo of angie
    angie
    Spectator

    I’ve used the same tactic in the UK Angela. When the selling agent submits an offer to me of say 10k or so below asking price, assuming it’s acceptable by me, then I ask that agent to knock a quarter to half a percent off his commission, or round it down by a goodly amount, it’s always worked for me, so well done in Spain 8)

  • #109109
    Profile photo of Anonymous
    Anonymous
    Participant

    Why will prices halve again if Spain had to leave Euro. Demand would be astronomical !

  • #108909
    Profile photo of Anonymous
    Anonymous
    Participant

    Why will prices halve again if Spain had to leave Euro. Demand would be astronomical !

  • #109111
    Profile photo of Anonymous
    Anonymous
    Participant

    @Ptr wrote:

    Why will prices halve again if Spain had to leave Euro. Demand would be astronomical !

    If Spain leaves the Euro – then the original currency psatas (hope spelling is correct) will revert back and hence property prices will be in psatas which would be valued lower than the Euro and hence property prices will half over night – may be it’s good for buyers but not good for anyone who owns a property right now in Spain. If you are a cash buyer then you could bag a bargain if Spain comes out of the Euro but if Banks are not lending money and have no money to loan how can demand be astronomical, there has to be a proper functioning banking system.

  • #108911
    Profile photo of Anonymous
    Anonymous
    Participant

    @Ptr wrote:

    Why will prices halve again if Spain had to leave Euro. Demand would be astronomical !

    If Spain leaves the Euro – then the original currency psatas (hope spelling is correct) will revert back and hence property prices will be in psatas which would be valued lower than the Euro and hence property prices will half over night – may be it’s good for buyers but not good for anyone who owns a property right now in Spain. If you are a cash buyer then you could bag a bargain if Spain comes out of the Euro but if Banks are not lending money and have no money to loan how can demand be astronomical, there has to be a proper functioning banking system.

  • #109113
    Profile photo of Chopera
    Chopera
    Participant

    @angela wrote:

    @Ptr wrote:
    Why will prices halve again if Spain had to leave Euro. Demand would be astronomical !

    If Spain leaves the Euro – then the original currency psatas (hope spelling is correct) will revert back and hence property prices will be in psatas which would be valued lower than the Euro and hence property prices will half over night – may be it’s good for buyers but not good for anyone who owns a property right now in Spain. If you are a cash buyer then you could bag a bargain if Spain comes out of the Euro but if Banks are not lending money and have no money to loan how can demand be astronomical, there has to be a proper functioning banking system.

    In theory it shouldn’t make a difference whether the property is priced in pesetas or euros. If a property is genuinely worth say €100,000 and Spain reverts to a peseta valued at say 100 pesetas = €1 then, all things being equal, the property will be valued at 10,000,000 pesetas.

  • #108913
    Profile photo of Chopera
    Chopera
    Participant

    @angela wrote:

    @Ptr wrote:
    Why will prices halve again if Spain had to leave Euro. Demand would be astronomical !

    If Spain leaves the Euro – then the original currency psatas (hope spelling is correct) will revert back and hence property prices will be in psatas which would be valued lower than the Euro and hence property prices will half over night – may be it’s good for buyers but not good for anyone who owns a property right now in Spain. If you are a cash buyer then you could bag a bargain if Spain comes out of the Euro but if Banks are not lending money and have no money to loan how can demand be astronomical, there has to be a proper functioning banking system.

    In theory it shouldn’t make a difference whether the property is priced in pesetas or euros. If a property is genuinely worth say €100,000 and Spain reverts to a peseta valued at say 100 pesetas = €1 then, all things being equal, the property will be valued at 10,000,000 pesetas.

  • #109115
    Profile photo of Anonymous
    Anonymous
    Participant

    @chopera wrote:

    @angela wrote:
    @Ptr wrote:
    Why will prices halve again if Spain had to leave Euro. Demand would be astronomical !

    If Spain leaves the Euro – then the original currency psatas (hope spelling is correct) will revert back and hence property prices will be in psatas which would be valued lower than the Euro and hence property prices will half over night – may be it’s good for buyers but not good for anyone who owns a property right now in Spain. If you are a cash buyer then you could bag a bargain if Spain comes out of the Euro but if Banks are not lending money and have no money to loan how can demand be astronomical, there has to be a proper functioning banking system.

    In theory it shouldn’t make a difference whether the property is priced in pesetas or euros. If a property is genuinely worth say €100,000 and Spain reverts to a peseta valued at say 100 pesetas = €1 then, all things being equal, the property will be valued at 10,000,000 pesetas.

    The only problem is that a salary of €1000 will become 100,000 pesetas and the 100,000 pesetas will be only €500 after the 50% devaluation of the peseta. So Spanish buyers will be able to buy only property with a 50% discount in Euros. As the Spanish buyers are the (big) majority,
    this will induce a fast ~40% reduction in the Euro prices.

    The question is: even for a song, is it worth buying a non-attractive property in Spain, considering that the foreigners will be fleeced to the bone by the Spanish governments?

  • #108915
    Profile photo of Anonymous
    Anonymous
    Participant

    @chopera wrote:

    @angela wrote:
    @Ptr wrote:
    Why will prices halve again if Spain had to leave Euro. Demand would be astronomical !

    If Spain leaves the Euro – then the original currency psatas (hope spelling is correct) will revert back and hence property prices will be in psatas which would be valued lower than the Euro and hence property prices will half over night – may be it’s good for buyers but not good for anyone who owns a property right now in Spain. If you are a cash buyer then you could bag a bargain if Spain comes out of the Euro but if Banks are not lending money and have no money to loan how can demand be astronomical, there has to be a proper functioning banking system.

    In theory it shouldn’t make a difference whether the property is priced in pesetas or euros. If a property is genuinely worth say €100,000 and Spain reverts to a peseta valued at say 100 pesetas = €1 then, all things being equal, the property will be valued at 10,000,000 pesetas.

    The only problem is that a salary of €1000 will become 100,000 pesetas and the 100,000 pesetas will be only €500 after the 50% devaluation of the peseta. So Spanish buyers will be able to buy only property with a 50% discount in Euros. As the Spanish buyers are the (big) majority,
    this will induce a fast ~40% reduction in the Euro prices.

    The question is: even for a song, is it worth buying a non-attractive property in Spain, considering that the foreigners will be fleeced to the bone by the Spanish governments?

  • #109118
    Profile photo of Chopera
    Chopera
    Participant

    @flosmichael wrote:

    @chopera wrote:
    @angela wrote:

    If Spain leaves the Euro – then the original currency psatas (hope spelling is correct) will revert back and hence property prices will be in psatas which would be valued lower than the Euro and hence property prices will half over night – may be it’s good for buyers but not good for anyone who owns a property right now in Spain. If you are a cash buyer then you could bag a bargain if Spain comes out of the Euro but if Banks are not lending money and have no money to loan how can demand be astronomical, there has to be a proper functioning banking system.

    In theory it shouldn’t make a difference whether the property is priced in pesetas or euros. If a property is genuinely worth say €100,000 and Spain reverts to a peseta valued at say 100 pesetas = €1 then, all things being equal, the property will be valued at 10,000,000 pesetas.

    The only problem is that a salary of €1000 will become 100,000 pesetas and the 100,000 pesetas will be only €500 after the 50% devaluation of the peseta. So Spanish buyers will be able to buy only property with a 50% discount in Euros. As the Spanish buyers are the (big) majority,
    this will induce a fast ~40% reduction in the Euro prices.

    The question is: even for a song, is it worth buying a non-attractive property in Spain, considering that the foreigners will be fleeced to the bone by the Spanish governments?

    Agreed. It seemed that Angela was saying that the switch from euros to pesetas itself would cause the property to fall in price overnight. This isn’t so. As you say, it’s the ensuing devaluation of the peseta (rather than the conversion to pesetas) that would cause the Spanish housing market to fall when measured in euros. However if the market for your particular property is not Spanish then this might not be such a problem.

  • #108918
    Profile photo of Chopera
    Chopera
    Participant

    @flosmichael wrote:

    @chopera wrote:
    @angela wrote:

    If Spain leaves the Euro – then the original currency psatas (hope spelling is correct) will revert back and hence property prices will be in psatas which would be valued lower than the Euro and hence property prices will half over night – may be it’s good for buyers but not good for anyone who owns a property right now in Spain. If you are a cash buyer then you could bag a bargain if Spain comes out of the Euro but if Banks are not lending money and have no money to loan how can demand be astronomical, there has to be a proper functioning banking system.

    In theory it shouldn’t make a difference whether the property is priced in pesetas or euros. If a property is genuinely worth say €100,000 and Spain reverts to a peseta valued at say 100 pesetas = €1 then, all things being equal, the property will be valued at 10,000,000 pesetas.

    The only problem is that a salary of €1000 will become 100,000 pesetas and the 100,000 pesetas will be only €500 after the 50% devaluation of the peseta. So Spanish buyers will be able to buy only property with a 50% discount in Euros. As the Spanish buyers are the (big) majority,
    this will induce a fast ~40% reduction in the Euro prices.

    The question is: even for a song, is it worth buying a non-attractive property in Spain, considering that the foreigners will be fleeced to the bone by the Spanish governments?

    Agreed. It seemed that Angela was saying that the switch from euros to pesetas itself would cause the property to fall in price overnight. This isn’t so. As you say, it’s the ensuing devaluation of the peseta (rather than the conversion to pesetas) that would cause the Spanish housing market to fall when measured in euros. However if the market for your particular property is not Spanish then this might not be such a problem.

  • #109119
    Profile photo of katy
    katy
    Spectator

    All this is assuming that the new peseta would devalue quickly against the pound. Don’t forget if all these countries default and leave the euro the UK won’t be in a good position either so the exchange rate may have little impact.

  • #108919
    Profile photo of katy
    katy
    Spectator

    All this is assuming that the new peseta would devalue quickly against the pound. Don’t forget if all these countries default and leave the euro the UK won’t be in a good position either so the exchange rate may have little impact.

  • #109121
    Profile photo of Anonymous
    Anonymous
    Participant

    1. Spain decides to leave the euro because they are stuck “according to them” in downward spiraling loop to the bottom when it comes to their economy. They are not allowed to control the financial policies as a sovereign country would by printing more money, lower the interest rates or both. The EMU wants Spain to lower their spendings and starts producing stuff more efficiently to correct this downward spiral.

    2. They leave and instantly the Goverment decides set the interest in negative figures or zero. “Yes you actually get money for taking their pesetas in nominal terms, happened in Japan during a few day during the 90’s?”. This would under normal circumstances mean that people would create new businesses because the money literally is free… what will happen this time around will mean that the banks can pocket most of the money to fill their black holes and the population will still need to pay quite high interest rates.

    3. When investors around the world look at Spain they will see that buying goverment bonds etc will be a very bad investment because they offer so little interest in return and inflation will also be very high. This will make investments in spanish currency very bad. Tourism will pick up but can spaniards afford their way of life?

    4. Since no one will buy goverment bonds for the same prices as they did with the euro the pesetas will loose value until the outside world decides that spanish produces are so very cheap which will stop the fall of the pesetas by buying products from Spain. The problem is that the government will probably not stop “printing” new money which will endlessly set the pesetas in free fall against other currencies. Spanish people would mostly buy domestic goods and stop importing so much.

    5. Most loans are held in euro so if the interest and payments still are made in euros it will mean paying more and more as the pesetas fall. The only way is just to refuse to pay these loans in euros and revert them into pesetas loans. “This is what Iceland did and in all honesty this is like stealing from the nations “populace” that loaned you the money in the first place”.

  • #108921
    Profile photo of Anonymous
    Anonymous
    Participant

    1. Spain decides to leave the euro because they are stuck “according to them” in downward spiraling loop to the bottom when it comes to their economy. They are not allowed to control the financial policies as a sovereign country would by printing more money, lower the interest rates or both. The EMU wants Spain to lower their spendings and starts producing stuff more efficiently to correct this downward spiral.

    2. They leave and instantly the Goverment decides set the interest in negative figures or zero. “Yes you actually get money for taking their pesetas in nominal terms, happened in Japan during a few day during the 90’s?”. This would under normal circumstances mean that people would create new businesses because the money literally is free… what will happen this time around will mean that the banks can pocket most of the money to fill their black holes and the population will still need to pay quite high interest rates.

    3. When investors around the world look at Spain they will see that buying goverment bonds etc will be a very bad investment because they offer so little interest in return and inflation will also be very high. This will make investments in spanish currency very bad. Tourism will pick up but can spaniards afford their way of life?

    4. Since no one will buy goverment bonds for the same prices as they did with the euro the pesetas will loose value until the outside world decides that spanish produces are so very cheap which will stop the fall of the pesetas by buying products from Spain. The problem is that the government will probably not stop “printing” new money which will endlessly set the pesetas in free fall against other currencies. Spanish people would mostly buy domestic goods and stop importing so much.

    5. Most loans are held in euro so if the interest and payments still are made in euros it will mean paying more and more as the pesetas fall. The only way is just to refuse to pay these loans in euros and revert them into pesetas loans. “This is what Iceland did and in all honesty this is like stealing from the nations “populace” that loaned you the money in the first place”.

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