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. |