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I remember when times were good on the Costa del Sol (for Estate Agents) especially. When people were queuing up to buy a property, when some of the more unscrupulous agents were cashing in with high commission rates of 10%.
Oh how things have changed. No more queues of purchasers and much harder to secure those much needed sales. You simply have to work much harder, do more advertising and promoting and conduct far more viewing trips to secure a deal…but in any career these days it is the same case.
So I have to say with all of that in mind together with the fact that the purchasers are more educated these days about property values, what is an average commission, the cost of buying etc etc, I was blown away by an email one of my clients received from Property Revolution.
Heres and excerpt:
“When you choose Property Revolution to sell your property, it will be promoted through a variety of channels including http://www.property-revolution.com and Resales Online, a shared database used by 90 estate agents along the coast. Marketing your property through us gives you an excellent level of exposure and maximises the opportunities for clients to view”
OK so far so good. Can’t sniff at that I guess
Our commission for selling your property is as follows:
Purchase price up to 300.000 € = 10%
Purchase price up to 400.000 € = 9%
Purchase price up to 500.000 € = 8%
Purchase price up to 600.000 € = 7%
Purchase price up to 800.000 € = 6%
Purchase price 800.000 € plus = 5%OK lets look at that again…with most properties selling in the 300k to 400k bracket these days thats 10% or 9% commission.
I have not seen these type of rates for years…10% commission in times like these seems MAD!!
Well I have watched with interest for many years the postings on this forum and would be interested to note YOUR reaction to these commssion rates.
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The 75k is just for a share of the freehold, not for the whole thing and looking at their site it may well be as low as a 12.5% share.
So that would make the property 600,000 in total.
Bargain…I don’t think so. Also the price would include a 10% commission.
Seems to me that the commissions are so high because this type of selling is not going to be sustainable. Take as much as you can while you can is what it stinks of.
This is quite an interesting paragraph from the site
“Zero risk property” means that, as far as we have been able to ascertain, the property is registered with the appropriate land registry, has a building license as well as a license of habitation and is ready to move into.
As far as they can ascertain??? Is it or isn’t it.
I thought we needed to be honest and truthful and distance oursleves from all the over selling and scams…THIS will not help IMHO
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By law (decree218) any agent has to ensure they have all the relative documents to produce to the buyer. I would have thought it the same for the fractionals.
Many years ago the Spanish would not pay agents and the prices were very low, so agents would add their fee on top. Nowadays though the cost of property means even at 2.5% its not bad, although one does have to actually work for it, instead of sitting there expecting the cheques to rush at you! 😀
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exactly.
Also have you seen there T&C’s?
Ready for this?
1. Viewing trips cost from €199 per person subject to availability and surcharges may apply for flights in relation to departure airport, specific flight times (eg. school and national holidays ) or use of certain carriers.
3. Clients must provide full contact details to Property Revolution and be genuinely interested in Spanish property to be eligible for a viewing trip. All decision makers must be present on each trip booked.
4. The Company kindly asks that you have the facility to pay a €6,000 reservation fee in the event that you view a property in Spain that you would like to reserve and have taken off the open market. This will ensure that the property cannot be sold to another interested party. The reservation fee is usually not refundable. The terms and conditions will be clarified on the Reservation document.
8. Viewing trips are only open to those aged 25 and over, home owners and UK or Ireland citizens.
So.. if you are considering purchasing a fraction of a freehold then make sure you pay for a viewing trip, be genuinely interested in buying, have 6k on you (do they frisk you to check??) and be over 25 and a home owner and by the look of it only for UK and Irish citizens.
Happy days!!
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Do you know if I had come on here saying I was charging 10% commission, I would have been absolutely crucified.
This thread would have had about 100 comments and 5,000 views by now.
I would have been flogged from one end of the forum to the other.
Yet, no one seems to really be bothered about this commission rate, so is it OK if I tell everyone in the estate agency business on the CDS to start charging 10% now?
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No it’s not ok to tell everyone to charge 10% commission Chris! 🙄
The people I feel sorry for though are those who paid up to 30% commissions on off-plans in the ‘buy it now before it goes up’ mis-selling days.
Imagine having paid 30% on 1 million euro properties and now this property slump! There may be those on here who don’t believe those commissions, but certainly the likes of Awful Estates were charging it.
Just out of interest, an article in last Sunday’s S. Times gave a warning from the FSA to UK Building Society’s/Banks to prepare for ‘drops of 60% in Commercial property values, and 50% in residential property values’. An independent body has confirmed that World property values (inc. Spain’s) are still declining. 😉
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Chris, as a potential purchaser I really don´t care what commission an agent is charging. If I find a place I want at a price I´m prepared to pay I´ll buy it. The commission rate is a matter between the vendor and the agent.
It would of course be a different matter if I was (and I am quite prepared to) paying a finders fee. 🙂
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I sold a property in Spain and paid 10% commission. I was happy to do so as the agent got a good price for the property and sold it within 3 months (during the last recession!) Likewise we were ok. about paying Viva 7% a few years ago. I am certain I would be unhappy to pay these sums to some agents….particularly the ones running a website from the kitchen!
BTW I am in Surrey , househunting. (Not leaving Spain though). 3 viewings have been cancelled because a sale has been agreed. One we expected to offer less than the asking price has already had an offer for the full amount. Lots of sold signs up when driving around. Actually, if the weather in the UK was always like it has been since last Friday I would leave Spain. Leafy Surrey looks wonderful. lots to do and the prices are now much lower. Last week in La Cala, 2 tubos (small beer) 4.40 euro, two small beers local village pub (real ale) £2.50. Local beach bar spain house wine 11.50 (lidl quality 🙄 ) local pub UK. house wine (French) £9!
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@Chris McCarthy wrote:
Do you know if I had come on here saying I was charging 10% commission, I would have been absolutely crucified.
This thread would have had about 100 comments and 5,000 views by now.
I would have been flogged from one end of the forum to the other.
Yet, no one seems to really be bothered about this commission rate, so is it OK if I tell everyone in the estate agency business on the CDS to start charging 10% now?
I blame the title. If the ttle had been a bit more interesting, say “property revolution, formely ADH, charging 10% commission” or something similar I’m sure it would have generated more interest.
It is also worth noting that unless people on this forum feel it could have a wider impact on the property market or the way agencies work there is not really much to comment on outside of “what do you expect!” comments
Finally, people are only interested in the price of the property. If X estates has the best priced property, it has the best priced property. (although 10% is an astronomical figure!)
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Having spent some time on French property forums in recent weeks, it seems 10% is quite the norm for French Property Agents to charge.
I have links for anyone wishing to see the threads but I don’t want to publish them here as it is in effect sending Marks hard earned members to a competitor. However very few people on those forums seem to think it unusual.
Except me of course!!
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10%? That’s nothing. I met with an (expat) estate agent yesterday (inland Andalucia based) on a job and happened to mention that my property was for sale privately. He (of course) offered to put it on his books but wanted to mark the house up from 98k (my current asking price) to 125k i.e. by 28%.
Mind you, he was also trying to delude both himself and his clients that a reformed townhouse in the town where I live would fetch 200k and that one in a nearby village (where I know you can pick up reformed properties for between 50k and 100k) would fetch 150k.
He seemed unable to grasp the difference between his ridiculous “valuations” and the actual prices that properties are selling for in the area. Or maybe he still genuinely believes that there are naive expat buyers willing to pay that sort of € 😯
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