Estate Agent Fees

Hi Angela

I personally have never purchased a property but I do believe that this practice is common in Spain. I am sure there will be plenty of responses to give you actual experiences rather than my hearsay offering!

That said, I came up against a similar instance for a long term rental I was looking in to recently.

All was going well and then the agent said that I (The prospective tenant) would have to pay the agents fee (typically 1 month of rent)!!! 

The discussion was on WhatsApp and I questioned why a tenant and not the landlord would have to pay charges, when you consider the marketing and work is all done for the owner/landlord?!

I refused there offering and suggested that either the owner/landlord was trying to pass off the costs OR that the agent was trying to double charge (ie both the landlord and the tenant end up paying)... the agent then blocked me on WhatsApp!!! 

I dont know what IS correct over here but what I do know is when something doesn't feel right. Sadly I think there is such a shortage in supply that 'agents' can literally make their rules up as they choose.

Good luck in your search

Hi

I bought a villa from Home Espana 8 months ago and did not pay them any commission even when I payed the deposit over the phone, so it could be that their policy has changed.

As to a shortage in supply there are thousands of properties for sale out there unless you are looking in a particularly popular area.

Paolo, my note about shortage in supply was for long term rental property, not the resale market :o)

I appreciate I am likely to be specific in my needs for a long term rent!

Hi, when you purchase a property you will pay various taxes on top of the price. None of this goes to the agent. The agent charges the vendor a fee either a percentage or fixed amount. This is usually already included in the price you are quoted. 

Hope this clears things up a bit. 

Thanks, this is a snippet from their e-mail ..

What will your maximum budget be, not forgetting 10% iva (this is a tax that gets paid to the Spanish government) 3% agent fees and also approx 3500.00 euros must be added for purchase fees (solicitors, land registry, notary, etc.)

What are agent fees of 3% ?

That sounds “iffy”. The 10% is correct (it’s IVA/VAT on a new build or Stamp Duty on an established property). 3,500 for solicitors sounds a lot though so if you do buy from them, I would suggest ignoring any recommendations of solicitors. I bought last year and paid less than €1500 which included Power of Attorney, a Will and fiscal representation (ie they sort out your taxes).

I can recommend Casas Manuel as a good agent. Really helpful and never any pressure. They have an office in La Zenia.

Shaun

Simple rule of thumb. Whatever you offer to agent as a bid.. add on  12.5% this is your total cost.

Don't forget the golden rule. Never give the agent a penny in terms of a "deposit to hold the property". Only move money via your solicitor and as Shayden said never use the Solicitor recommendedby the agent

Not normal but what is in Spain. Normal inland is 3% fee and minimum 5000 euro what the seller has to pay.

Well the comments are very interesting as we have just returned home after a four day visit with a well known agent and we really liked two of the properties we were shown but the actions of the agent put us of buying.

We were advised that we needed to pay them £3000 reservation fee there and then or else we would lose the property,it really put me off and like I said let the other couple have if the want to pay you the 3k.

I think we will return under our own steam and find what we want without the pressure of the agent wanting cash there and then and use our own lawyer not the one offered by the agent.

We are looking around the area of Valentino Golf in Villamartin or near the the Plaza

Regards

,