Consider this:-
Leaflets, adverts, TV campaigns, glossy brochures and other marketing
methods cost companies €1'000's and some millions!
This money has to come from somewhere. The old adage of "you don't get
something for nothing..." is usually true and it certainly is in this
case. In comparison to
commissions one would expect your typical UK based estate agent to earn
on the sale of a property in the UK, companies like Atlas, Masa,
Ambersun, Parador Properties and many other agents, including the
small local Spanish Agents, earn large amounts of money in the form of
commissions when they sell a property.
While working with a local estate agent I
personally witnessed a commission of 25%!
Although I must point out that this is not a normal situation. Mostly one would
find commissions being earned by estate agents to be between 5% and 18%
depending on the type of property in question.
New properties see agents earning commissions direct from the builder
whereas resale properties typically have an owner price and the agent
will add the commission to that price. Of course the commission will
depend on the value of the property and the properties marketability.
With a little work and determination one can normally find the same
property advertised in several agents windows and on the internet with a
huge variance in price.
Rural properties seem to have a law unto themselves. One might find that
little rural property that has been passed down over generations without
thought as to how much it might be worth. The latest inheritor wants to
sell and speaks to Pepe in the local bar. Pepe thinks he might earn some
money as he know someone who knows someone else that knows an estate
agent selling this type of property to "those
rich foreigners". Each party adds his little
cut then the agent adds their commission. before you know it that little
farmhouse that has an original owner price of €30'000 is up for sale for
€100'000. This situation came to our attention during a sale we were
attending to last year. We only found out when we routinely started to
check the particulars of the sale. Who owns the house? Is he able to
sell with all papers in order? Is the house and land what is described
on the deeds etc. It was at this point we talked directly to the owner
and discovered the long sales chain.
How do we know this; simple we have worked in the industry, sold
property here and bought property here and have experienced this 1st
hand. |