- January 29, 2006 at 10:16 am #51523
My villa is for sale with an estate agent in Ayamonte for 238,000 euros FURNISHED. Would it be a better proposition to sell it for say 210,000 euros and say to a prospective buyer you can have the fixtures, fittings and furniture under a separate agreement for 28,000 euros. This would as far as I can see give me three advantages, one, I would only be paying the estate agent 8% of 210,000 euros, two it would also reduce my capital gains tax, three it may get more people interested. Advice on this matter would be much appreciated.
- January 29, 2006 at 11:58 am #60708
You definitely need to charge the property and contents separately. Lumping it all together in the price of the property is a big mistake that harms buyer & sellers interests, and only benefit agents, notary and taxman, who charge as a % of the property transaction value (given in the deeds).
8% agency commission. That’s steep. On 210,000 Euros that would be 16,800 Euros plus VAT = total of 19,488 Euros that you have to pay to an agent (making the effective cost to you 9.28%). It’s daylight robbery. Is 8% the going rate in Ayamonte? Are there no other agencies that charge more reasonably?
I suggest you also put your property details in our private sale forum. You can include photos if you want. There is no charge to use it. You never know, you might save yourself and a buyer around 10,000 Euros each, if you split the difference on the commission.
- January 29, 2006 at 6:23 pm #60715
Mark, Thanks for the reply. If the villa is sold for 238,000 which is the price the estate is marketing it for I would have to pay them 8% commission which would total about 21,000 euros including tax so I thought I was being clever by suggesting dropping the price to 210,000 and selling the furniture separately which would save me quite a bit in agent’s commission but as you point out I would still have to pay them an enormous sum. There are other estate agents in Ayamonte but the one I am with has sole selling rights until March. I am going over to Spain in the near future and will investigate other agents in Ayamonte and find out what commission they charge. On your advice I will also advertise it on this forum. Whilst i am in Ayamonte I will ask the manager of La Caixa about their extortionate charges. Thanks for your help.
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