Reply To: Estate Agents Fees

Chris M

@karenmcc wrote:

Sorry Claire but I for one am very interested in what is happening. This is an important change which will affect the way properties are bought/sold and effectively bring prices down. A lot of companies will be forced to follow suit. If companies are pushed out of business it could have a knock-on effect regarding unemployment….remember that long-term tenant you may be targeting – if he’s unemployed he’ll be looking for a cheaper rental……

Personally I think it’s great news, as a resident on the Costa del Sol property prices/rentals are spiralling out of reach of the local market with a large chunk of the cost being eaten up by commissions of one sort or another. For those of us not earning commissions the average wage is around 1000 euros a month so getting on the property ladder remains a dream for many of the resident population.

If sale prices are cut due to reduced commissions then this represents a better deal for the buyer yet without any change to the vendor’s nett figure. This may be exactly what’s needed to help the market pick up from it’s current slump.

Hi Karenmcc,

Thanks for your positive comments; they are a real boost to me, because this is the way we look at things.

I would add that a parallel issue to vendor benefits and a major advantage we see is of that to the buyer. And not previously covered in my previous posts.

We are often asked the question by a buyer: “What happens if I want to sell in twelve months time?” In the past we would have had to respond with the fact that your purchase price today must have added to it at least 10% in costs (without reference to government taxes or duties) to achieve a basic return on your monies.

Inevitably therefore, we take a large chunk of the vendor’s equity upon sale, and an equally large chunk of buyers equity upon resale, we ended up the clear and only winners here.

Now, Karen, yes we may be able to help you buy a property that is 10% cheaper than yesterday, and may be able to help you move up and progress through the ladder in future. And we won’t be looking for another 10% upon your exit. This is one of our goals, and a significant part of our plan to achieve repeat business and obtain good referral business also.

It is genuinely about trying to deliver a win/win scenario and removing ourselves from being a real barrier to entry and exit of property ownership.

Thanks for the comment and the support for our proposition.