Are we at the end of 5%+ commission in Spain?

Spanish property

Selling property in Spain for international owners is expensive. However, it is vital that vendors are fully aware of the costs involved. There are a variety of fees, including a high level of commission in Spain, and some of the payments will leave many buyers shaking their head in disbelief.

Currently there are no government controls on international estate agent fees for property transactions in Spain. Believe it or not, it is not uncommon for 5%, and even more, to be the starting point for the agent’s commission. When you consider the significant price of property, an additional 5%, without doubt, is going to be a substantial sum of money.

Don’t pay more than you need to for commission in Spain

It is good to know, however, that the days of 5%+ commission faced by international vendors may be coming to an end. We can however easily understand why agents are keen to maintain this level of commission, but the power of the internet and an increase in consumer options is helping to change the market. Vendors, when given the option, will naturally choose an estate agent that doesn’t charge substantial fees when selling a property, provided the service levels are maintained and even improved.

Thankfully, the market is changing, and at Sell-1995, we are pleased to be spearheading the change process. We are committed to providing the best standard of service at the best price for all our clients.

 Pay a Fixed Fee for peace of mind

If you sell a property through SELL-1995, the fee is fixed at €1,995 + IVA. This price, which also includes legal fees, is regardless of the selling price of the property as no commission whatsoever is charged.

Also there is no up-front fee, which is the case with many online estate agents dealing in Spanish property sales. When an agent receives a fee in advance from a client, it can reduce the agent’s incentive and motivation to sell a property. At SELL-1995 we operate on a strictly No sale-No fee basis so you can be confident we are fully motivated to sell your home.

Spanish property

On the question of zero commission it is our fundamental belief that this is the way forward for estate agents in 2020 and beyond and is the natural choice for vendors. In addition, we don’t believe clients should be signing sole agency deals as they should be permitted to explore every avenue to sell their property for the best possible return. For the record it is our position that we will not collaborate with commission-based estate agents, therefore if you want to explore both options it is wise to avoid a sole agency.

Selling a home in Spain has been expensive, and quite often, vendors haven’t received value for money. We believe those days are coming to an end, as is the era of 5%+ commission when selling your home.

If you want value for money, quality service and commitment from your agent, contact Sell-1995.com now for a free valuation.

How to sell your Spanish property and save thousands!

While the cost of buying a home is well-noted, less attention is paid to the cost of selling a property, which can be expensive. Indeed many vendors have concerns about selling their home because of the costs involved.

So one issue that concerns many vendors is how can they save money selling their home without compromising the quality of the sales process. There is a fear that cutting corners and lowering the cost of selling your home can cause problems down the line. This could happen, but it doesn’t have to happen.

At Sell-1995, we are pleased to say we can help you sell your property and at the same time save you thousands of euros. More importantly, you won’t compromise an inch on the standard of service because we are not like other agents.

Avoid the High Street when looking for an estate agent

Traditional estate agents have impressive high street offices. This costs a considerable amount of money, and when you use this sort of agent, you are often paying heavily for their presence. A high street agent, before they’ve even opened their doors, is paying heavily on rent, electricity and lighting, wages and many other sundry expenses associated with having a physical presence. When you employ the services of a traditional estate agent, you are paying a lot of money to help them service these costs before you even start.

We aren’t like these agents. We don’t have High Street offices, and therefore don’t have many of the costs these agents have to contend with.

However, and this is crucial, we are not like online agents who often demand upfront fees. We offer a hybrid service which means you deal with a real person who will help you to sell your home and can offer accompanied viewings on your behalf. If you leave us the keys to your house, we can meet viewers without you having to be present.

The hybrid system ensures we provide you with the best of both worlds. You receive the hands-on expertise many vendors need when selling their home, but you don’t have to pay over the odds on excessive fees.

At Sell-1995 we offer you a fixed fee model of €1995 including legal fees to sell your property. We don’t charge you any money upfront, and we operate on a No-Sale – No-Fee basis. This incentivises us to make sure we sell your home. If you enlist the services of an online estate agent, they normally require you to pay money up-front, and therefore have no motivation to actually sell your home. This isn’t the case with Sell-1995. We take the risks, which means we work harder to sell your property.

You can save thousands by being smart

No two property sales are the same, and no two clients are exactly alike. You shouldn’t have to pay for estate agents lavish High Street offices which don’t help you sell your home. By opting for a hybrid estate agent such as Sell-1995, you receive a full estate agency service superior to industry standards whilst ensuring you’re not paying excessive estate agency fees.

As a bare minimum, we have helped our clients save €4,000 in comparison with ordinary estate agents. However, depending on the nature of the sale and the work associated with the process, it is not unknown for Sell-1995 clients to save more than €10,000! Hard earned money that is rightfully yours.

Get the help you need to effectively sell your home

At Sell-1995, we know the property market is changing. Clients demand the highest form of service but there is no need to pay excessive amounts of money when selling a home. This is money which could be better used for your next move.

If you are keen to learn how the new wave of estate agents can save you thousands when selling your home, contact Sell-1995.com today and book your free valuation.

Top 5 tips

Buyers

Who Pays the commission

An important piece of information to know is that as a buyer it’s common practice to be informed not to worry about Estate Agency commission as the seller pays it. The reality is that in many cases the vendor will ask how much they want to receive for their property. Once the figure is known common practice is for the agent simply to put their commission on top, this figure often ranges between 5 & 10%.

If you are asked to make part of the purchase payment in cash you should ask for confirmation in writing what this payment is for and who ultimately will be receiving this payment. Our opinion is that cash payments should be avoided.

If you are being taken from collaborating agent to collaboratimg agent you should question this. The stock answer is that the commission is simply shared by all of the agents involved in the sale, in such circumstances if you are asked for any part of the payment to be made in cash for furnishings or any other component our advice would to be think carefully before committing to a purchase  under these conditions.

You should feel free to talk with any vendor during a property viewing and to ask any questions that you feel are appropriate. We can’t think of any logical reason why potential buyers and vendors shouldn’t be allowed to speak to each other.

You should be looking and asking for complete transparency throughout your enquiry process and even more so during any purchase process. Wherever you are buying property it is a major investment, understanding the full process is very important so don’t be shy to ask questions.

Sellers

Do you really know the selling price?

Insist that you have in writing from both the buying and selling solicitors the full purchase price, the commission to be paid to the selling agent and the full disclosure of any cash element even if it is for furnishings or any other component.

We recommend that vendors do not sign any exclusivity agreement with an estate agent. Exclusivities are usually just a form of locking in the vendor and benefitting the agent. If the agent tells you that they will drop their fees for exclusivity then you should just politely ask them to drop their fees anyway.

Strongly consider whether it is worth listing your property with an agent who is offering you lower fees than they do as standard to their other vendors. Do you think they want to prioritise selling properties with the lowest rate of commission or the highest?

Who has your keys? Many agents collaborate together in very large numbers, do you want your keys being passed around such a large group of different agents and subsequent staff? If the answer is no you should insist that if the listing agent is holding your keys that they should attend every viewing at your property to give access to collaborating agents and their clients.

Request written information for every viewing on your property including date, time, the selling agents representative who showed the property and the prospective clients feedback

You should also…

consider that with our no commission model every vendor pays us exactly the same, €999 regardless of the selling price. Therefore we never prioritise one property over another based on what we can earn on a sale. All of our vendors are equally important to us and we will do our level best to sell every property that we list based on equal merit.  If you would like us to sell your property for just €999 contact us today to arrange an appointment.

A 2017 Snapshot of The Spanish Property Market

Spanish property prices rose to absurd levels during the Spanish property boom, which came to a dramatic halt in 2007.  Since then Spain has suffered a severe economic crisis, which has further damaged property values, with the result that property prices in many areas are still similar to those existing in 2004.  Indeed, house prices have dropped by as much as 35%-50% since the boom and now offer exceptional value for money.

But prices vary wildly between different areas of Spain and the market recovery that began in 2012/13 is certainly not everywhere. Over-supply issues were never such a big issue in Mallorca and Ibiza so prices have begun to rise again already. Spain’s National Institute of Statistics (INE) have reported that the Spanish market has grown every month since March 2014, with sales going up steadily, year on year. The Balearics and Almeria show the biggest year-on-year increases over 2016.

The enduringly popular Marbella arguably led the recovery on the Costas, whilst in 2014 the Costa Blanca market – especially the new-build sector – sprung back into action. The INE have also revealed that 40 per cent of foreign buyers in Spain were in the Alicante region (including the Costa Blanca). Post Brexit vote, British buyers have dipped a little but still lead the way, but are followed by a much more diverse spread of nationalities that include non-EU investors seeking “golden visas” as well as a good range of northern Europeans seeking to escape freezing winters.

Many of the distress sales we heard so much about have now been hoovered up so whilst buyers may still find some great deals amongst resale properties with vendors anxious to sell quickly, the scope for negotiation is narrowing in the hot spots of the Costa del Sol and Costa Blanca.