Buying and Selling Property in Spain
Beware - more agents means higher commission charges!

Picture the scene....

You have had a phone call from your estate agent, asking to bring clients to your home for a viewing at 11 am. You quickly run round your home, making the beds, spraying air-freshener, clearing away the children's toys, washing-up last nights dishes, etc etc.

The estate agents arrive...

At 11.01 a car arrives with your estate agent, the one who telephoned earlier. But he is by himself, and stays waiting in his car.

Two minutes later, a second car arrives. A man gets out whom you have never met before, and your estate agent follows suit – they strike up a conversation. Because you have never met the second car driver, you naturally assume he is the potential buyer. Wrong!

And more estate agents...

A few minutes pass - and a third car pulls up, followed by a fourth car. The driver of the third car and his passenger get out of their car and wave at the first two car owners. They turn around and greet the people in the fourth car – a husband and wife with three young children.

Then they all head for your front-door.

You are introduced to each in turn by your estate agent, the driver of the first car. You learn that the driver of the second car is another agent whom your estate agent uses to market properties, because he has a better chance of selling since he has more properties.

The driver of the third car is yet another agent who received the potential "buying lead" from a UK agent. He often uses your estate agent to get properties for him to show his clients. The passenger in his car just happens to be the UK agent, who has arrived in Spain for a quick visit. Confused?

So lets explain....

The UK agent has introduced a potential lead to agent three, who calls your estate agent who then contacts agent two. In other words, you have let a total of four agents but only one buyer with family, into your home!

What about the price? This is where it gets interesting!

You want 380,000 Euros for your home, and you agreed 5% commission with your estate agent, equivalent to 19,000 Euros. So the sale price is 399,000 Euros.

But during a conversation with the potential buyer, he asks you quietly if there is any chance of reducing the price. You now learn that they have been told the price is a massive 415,000 Euros - 35,000 Euros more than you are asking. You say nothing at the time, but ask your estate agent about it when you are alone.

He tells you that the commission has to be increased because there are four agents involved. And naturally they all want their commission. He explains that the problem is that both the UK agent and his contact in Spain, who introduced the potential buyer, want 5% commission - which they are willing to split between them. On the asking price of 415,000 Euros, their commission will be 20,750 Euros.

This then leaves a further commission balance of 14,250 Euros which your estate agent shares with agent two, meaning they will only earn 7,125 Euros each!

The bottom line for buyers is that the more agents involved, the higher the commission. Buyer Beware!!!