February 17, 2007 at 12:35 pm #52652
Well it looks as though our family health problems might not be as bad as first thought (we’ll know more by next week) so my wife and I are again considering the hunt for a property on the CDS.
We learnt quite a lot on our first recce in November (see the thread about the return of our deposit) and would now like to prevail upon you wise folks for more advice. Basically we have a budget of between 22/250000 euros, we really liked the Cala Hills development in Mijas, and quite honestly would like to take the opportunity in what seems to be a falling market to snap up a bargain.
Would we be better just touring around and making notes of the private “For Sale” signs, or finding an agent who will deal with us fairly, tell us the truth and give us a good deal? We have a major advantage in that my wife is a fluent Spanish speaker, and we are not in a great hurry – we can either buy now or wait until later in the year when the prices may be even more advantageous to us. 😉
Any advice would be most gratefully received – thanks
February 17, 2007 at 2:33 pm #69389
I would try to find a private sale as they will be more willing to negotiate a lower offer if they don’t have any agents fees to pay. There are pages full of ads in http://www.surinenglish.com, many of them private (although some are agents in disguise!!).
Just take it slowly, the markets on your side, waiting 6 months could see more bargains (IMHO)
February 17, 2007 at 5:03 pm #69396
February 17, 2007 at 5:14 pm #69397
February 17, 2007 at 5:40 pm #69399
February 24, 2007 at 9:22 am #69591
Fuengi (Andrew)Participantcoatimundi wrote:Would we be better just touring around and making notes of the private “For Sale” signs, or finding an agent who will deal with us fairly, tell us the truth and give us a good deal? We have a major advantage in that my wife is a fluent Spanish speaker, and we are not in a great hurry – we can either buy now or wait until later in the year when the prices may be even more advantageous to us. 😉
if your not in a great hurry. I’d combine a bit of both. Personally i’d go with an agent (but i’m biased).
Just do this:
1. go into agency X
2. Specify your criteria
3a. If they show you what you want, go on viewing
3b. If they show you something totally different, tell them to stop wasting your time.
4. Then repeat till you find what you like.
Your wife speaking spanish is a benefit as you can use agencies that deal alot more with the spanish market. Which should mean a larger selection of properties for you.
February 24, 2007 at 6:33 pm #69613
Fuengi I agree with everything you say except for the Spanish! They have no concept of price and market forces so you end up looking at stuff highly priced – and they will not negotiate!
February 25, 2007 at 8:16 am #69627
I would only add – that since you already know which particular development you are interested in – FIRST go take down all the private “for Sale” numbers and look at in person.
THEN talk to agents. That way if an agent takes you to an apartment you have already seen, he cannot claim to be owed a commission for “introducing” you to the property.
Afterall, one of the benifits of using an agent – and one of the justifications (and rightly so) for paying an agents commission, is the fact that the agent will introduce you to areas and develpments which meet your requirements. You already know at least one potential area and one development. No need to pay for that info which you already posess.
Just my humble opinion.
February 25, 2007 at 12:18 pm #69629
But this way the estate agent wouldnt make his 10%
February 25, 2007 at 4:16 pm #69634
Think the USA system is good where you appoint a buyers agent (highly regulated). This person works solely for you and a no cost, she/he splits the commission with the selling agent. They are bound by law to disclose anything they know about the property/area. In the case of new properties they can negotiate a better deal from developers than you would obtain yourself and advise against spending money on a lot of useless extras.
Not all perfect there though as Trevor Mcdonald show is currently filming there re. scams that have affected Brits. (shown in March).
February 26, 2007 at 10:42 am #69649
The only comment I would make James is that one an seller has appointed an agent – and you may not like any agent at all, then there are costs for the agent in publicizing that property as well as running the buyers around. In this case any agent worth his salt will register the client with the seller – in this case if a private deal is done, the agent will still get paid as he has introduced the parties – which is the actual job of said agent.
If the buyer had already seen the proeprty, this would or should have been discovered before going to the property, therefore not wasting the agents time.
February 26, 2007 at 11:50 am #69653
Just how much should you pay in commission.
I hear 10%, 20% and even 40% being bandied around. However, I think that’s incredible.
Approx 2% is right in the UK depending on whether it’s a sole agent. I can see a call for up to 5% if the agent is retained on more of a consultancy / professional basis where they are doing a lot of investigation work.
But surely no more than 5%. That’s 25K on a 500k property. I don’t know what the wages are like in Spain but is that really 3-6 months solid work to close?
I’ve already started marking likely areas on Google Earth and will be spending a few weekends travelling around, talking to people and looking for Se Vende signs before I worry too much about an agent. If I cannot find a suitable property then I might think about using an agent but what should be the going rate for this?
February 26, 2007 at 11:59 am #69656
The average is 5% although for some dodgy agents the skys the limit!! A friend who has a property for sale received a call from an agent saying had he considered dropping the price by about 8% (the house is already priced 50,000 euros under bank valuation!) He said he would think about it but would they consider reducing their commission rate?…er. NO ❗
February 26, 2007 at 12:33 pm #69661
Certainly 5% should be the tops and seems to be normal for southern Europe. Some agents do only charge from 2% but this could be a bit of a con and some are genuine.
February 26, 2007 at 7:24 pm #69680
Glad to read that the family health problems may turn out not so serious after all.
Good luck in your search but please take care with private Se Vende signs….
– Many are agents masquerading as private vendors!
– When the vendor hears a British accent the price often goes up!
– Never ever hand over a cash deposit to a private vendor. Until your lawyer has seen ALL the legal paperwork on any private transaction do not hand over a centimo. Local case I heard recently where a couple handed over their money to “Carlos Smith” (for want of a better name) and they gave money to the son when in fact the father (who had the same name) actually owned it…and had no intention of selling! No wonder it seemed like such a deal!
– Make sure that any private sale does not include B money (see several threads on this subject in the forum). Many local vendors are so conditioned to ask for this that you may not realise you are breaking the law in agreeing to their demand.
…and the final golden rule…”It if seems too good to be true then it usually is”.
Good luck in your search.
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