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7.5% plus IVA @16% actually equals 8.7% but I rounded it to 9%. However, whichever way you look at it, 8.7%, 9% or 9.5% is criminal, unjustifiable and totally un-earnt. Most agents in Spain take on or link via MLS systems to as many properties as possible, take a listing, take a dozen photos, put them on a website and hope buyers see the property and make an enquiry. They might print off a window card to display as well. On the whole, agents in Spain do not market any property in any other way.
if the property is 200.000€. On the IN network with 7.5% the selling price would be 219.058€.
Agree with modification – Estate agents fall into 2 catagories – ones that wish to sell a property and ones that wish to list a property!
That’s why clients should be discerning in regards to whom they give their property to sell.
What clientele do the agencies market too, what sort of properties do they advertise in their windows, Do they produce a magazin, where/how do they advertise, etc…
On this basis, on a sale of €280,000 the agent that has the buyer gets €11,550 (4.125%) for his half of the job, the agent that took a few photos and ticked a few boxes as his half of the job gets €8,400 (3%) and IN get €1,050 (.375%) – all plus IVA. The buyer is robbed of €21,000 – the additional amount added to the true value of the property by the agents and system.
Actually its 24.360€ [EDIT: sorry, yes 21.000 without IVA]
55% = 13.398€
40% = 9.744€
5% = 1.218€
As for IN, their system could have been built / developed for no more than 10,000 US Dollars and the monthly maintainance costs would be in the hundreds with web hosting.
In real terms, MLS networks should offer participating agents double the sales but at half the commission for their half of the job and therefore these levels of commission can not be justified in any way by claiming that the MLS system costs that money to operate.
Personally I think it should 5% across the board. I don’t agree with whole sliding scale situation.
Let’s not lose sight of the fact that the average wage on the CDS is less than 16,000 Euros a year so how can one half of one flat sale justify 72% of 12 months salary?? Or if the agent lists and sells the property, €21,000 is about 16 months salary. No wonder we see all these multi-coloured signwritten new 4X4’s, BMW’s, Mercs etc sitting outside agents offices!
From personal experience, I would say the average wage along the coast is closer to 12.000€.
If an agent makes 21.000€ for one sale then yes that is incredible.
But an agency making 21.000€ is a different proposition.
21.000 – 16% = 18.103€
salesman commissions = 20% (for argument sake only) = 3600€
14503€ left to cover all salaries, costs, etc…
Not much is left over. and less if it all has to be split.
You know most of those flashy multi-colored cars you see in front of certain agencies, are not owned by them, but generally under some sort of lease agreement. AND interestly enough, those are the agents that concentrate on off-plans with telemarketing departments, etc…