or has had his on for 300,000 – but that is no indication of the value – merely an indication of what the owner wants.

This is very different from market value. I won’t go into this as I wrote a separate article recently on this topic. But the long and short of it is that if the property is over priced it is not b

Last article we looked at the role of the Spanish agent for both the buyer and seller, what they should do and what they don’t do. This article we look at the highly charged issue of estate agents commissions and the effect it has on the selling price of your property. Oh mother there could be fireworks tonight.

Estate Agent commissions push up the price of our property

A common cry we hear is that estate agents commissions push the price of the property way over the top. To a degree I agree.

But stop right there!

Typically a buyer will look at properties 10 to 15% over their budget – the logic being that if they find something they like they are within the ball park to negotiate a deal. If the buyer ups his price 5% and the seller drops 5% then hey presto – deal made. But hey if you got rid of the agents commission – you wouldn’t have to drop your price much at all – and guess what you also wouldn’t be negotiating a deal because without the agent the buyer wouldn’t be there.

So even given the worst case scenario that an agent charges 6% - this still leaves a client in the ball park. No I am afraid this doesn’t wash, the harsh fact is most properties valued by their owners are way over priced in the first place. I am sure the guy next door has had his on for 300,000 – but that is no indication of the value – merely an indication of what the owner wants.

This is very different from market value. I won’t go into this as I wrote a separate article recently on this topic. But the long and short of it is that if the property is over priced it is not be

state Agent commissions push up the price of our property

A common cry we hear is that estate agents commissions push the price of the property way over the top. To a degree I agree.

But stop right there!

Typically a buyer will look at properties 10 to 15% over their budget – the logic being that if they find something they like they are within the ball park to negotiate a deal. If the buyer ups his price 5% and the seller drops 5% then hey presto – deal made. But hey if you got rid of the agents commission – you wouldn’t have to drop your price much at all – and guess what you also wouldn’t be negotiating a deal because without the agent the buyer wouldn’t be there.

So even given the worst case scenario that an agent charges 6% - this still leaves a client in the ball park. No I am afraid this doesn’t wash, the harsh fact is most properties valued by their owners are way over priced in the first place. I am sure the guy next door has had his on for 300,000 – but that is no indication of the value – merely an indication of what the owner wants.

This is very different from market value. I won’t go into this as I wrote a separate article recently on this topic. But the long and short of it is that if the property is over priced it is not b

y find something they like they are within the ball park to negotiate a deal. If the buyer ups his price 5% and the seller drops 5% then hey presto – deal made. But hey if you got rid of the agents commission – you wouldn’t have to drop your price much at all – and guess what you also wouldn’t be negotiating a deal because without the agent the buyer wouldn’t be there.

So even given the worst case scenario that an agent charges 6% - this still leaves a client in the ball park. No I am afraid this doesn’t wash, the harsh fact is most properties valued by their owners are way over priced in the first place. I am sure the guy next door has had his on for 300,000 – but that is no indication of the value – merely an indication of what the owner wants.

This is very different from market value. I won’t go into this as I wrote a separate article recently on this topic. But the long and short of it is that if the property is over priced it is not b

se without the agent the buyer wouldn’t be there.

So even given the worst case scenario that an agent charges 6% - this still leaves a client in the ball park. No I am afraid this doesn’t wash, the harsh fact is most properties valued by their owners are way over priced in the first place. I am sure the guy next door has had his on for 300,000 – but that is no indication of the value – merely an indication of what the owner wants.

This is very different from market value. I won’t go into this as I wrote a separate article recently on this topic. But the long and short of it is that if the property is over priced it is not b

or has had his on for 300,000 – but that is no indication of the value – merely an indication of what the owner wants.

This is very different from market value. I won’t go into this as I wrote a separate article recently on this topic. But the long and short of it is that if the property is over priced it is not because agent commission is pushing it way over the top – it is because it is already way over priced.

Agents could of course help themselves here by giving valuations – but they generally don’t. Most prefer to fill their windows with properties that they have no chance of selling to make it look like they have a lot of properties for you to view.

Agents even bring clients round – who probably have no interest in being there because it wasn’t what they were wanting – but at least it looks as if our friendly agent is doing their job – they are at least bringing loads of people round. But what would you prefer – an agent who brings one buyer round who buys, or an agent that brings 50 people round who have no intention of buying.

Much better to give a realistic valuation then. If the client doesn’t like it –there are many agents out there who will put the property on the market – and you can always drop your price in a year’s time when it is still there to be sold.

Sharp practice or good business sense?

One practice that is common in Spain is that of an agent who signs the contract between the buyer and themselves and the seller and themselves. Effectively they are masking their true commission. However, the practice itself – although the way