kevray

Good answer
Kevray

kevray

when you consider that the cost of living in Spain is approx a third less than that in the UK, and that our estate agent is charging me 1% on a house valued at 170000 pounds, surely with all the extra expenses he has, he has far more right to charge 4%. His overheads are much greater than those in Spain.
As far as I can establish, Spanish agents post details on the web and then sit back and wait for an enquiry, then bombard that person with details of every property held since 1999.

gazzpfc

Agents fees are bizzare world wide here in Uk we hae always negotiated a flat fee no % just a thats what it is if you want to take it on approach but we live by the sea in the south so not hard for them to sale if priced realistically.
In America we paid around 1.5% and in Spain we await the bombshell when we buy but have decided year 1 to rent as we have sod all to sell here in UK its easy just to pack up the gear and go.
But agree with your sentiment its stunning to think they will charge you say 10-15000 euros for what?

mitzipurr

"For what". A very good question perhaps a estate agent would care to answer it.

The experince I have had is usually the agent stands there staring into space and I show the perspective buyers round. On querying this I was told "well you know the house better then I do"! I go back to my original point. How can estate agents justify charging a client thousands of euros for the work that they do?

sortedtoo

That's just the point, they don't justify it. The paying public do by paying the fees.

Back on topic, just enquired about a couple of properties in the range 300-400k, and both have sold in last week - things seem to be holding up on northern costa blanca.

Emilio

The bubble will never burst whilst there are people who buy, and, you see, people go on buying properties in Spain. The price of things depend on what you are ready to pay for them. Gold, for example is a completely useless metal and, however, people pay for it more than for any other. The same happens with properties. For many Spaniards housing is the safest investment for their money, and the fact that they continue investing, makes it even a safer investment.

My advice: don't be afraid, thousands of people cannot be wrong.

kpw4v

I don't have a crystal ball to know if the Spanish Property Bubble is going to burst or not. I don't even care if it is a bubble or not. I just consider the basic laws of supply and demand. If supply exceeds demand, then the prices will fall, and vice versa. Taking the example of gold, current increasing price is due to increasing demand for jewelry, particulary from Asia and static supply as gold mining companies have not invested in new mining capacity due to previously low prices of gold. The previously low price came about when several Governments (including UK) sold off gold reserves (because it is a useless metal) and therefore artificially increased supply.

In my opinion (and many others), at the moment, there is more supply than demand in Spain for property. Therefore prices have, and will continue to fall. Some people may call this a price crash or the bubble bursting, but these are just words. The basic fact is that there does not seem to be any reduction in the supply of property, and demand is static at best but probably declining. The supply side is further compounded by amateur speculators who have bought off plan with the promise of easy profits if they sell before completion. Well, as these off plan developments near completion, the birds are coming home to roost, so expect floods of resales as amateur speculators are forced to sell at fire sale prices.

If you believe the agents who say you can buy in Spain and make short term profit, then I know a nice Nigerian Bank employee who would like to talk to you about a deceased Government Employee with millions of dollars in a bank account that needs transferring.

kevray

Good answer
Have some karma on me

poollounger

Well al I can say is Spain here I come....if being an estate agent out there is so easy then I shall become one as well and live a life of luxury. One could argue ad infinitum about the sums and the ethics involved. Like all things in life if you are confident to go it alone then so be it and you may well get better value for money. The posters on this thread have a bone of contention with estate agents...well one could take issue with the fees charged by all sorts of people in all sorts of professions. The £10000 a day doctors can earn from injecting faces with botox in Harley street ?? The fat pensions civil servants rightly or wrongly get?? I wouldn't choose to work for the inland revenue but someone has to do it. If they can get it then that is their good fortune. There is along list of well paid jobs that I would never choose to do, and frankly I think the junk food and cigarette industries among others are far more exploitative than any estate agent...at least they are not knowingly peddling products that will kill you!!

Unexpat

Whilst this is all true and my list of other professions and commerce to avoid may not be disimilar to yours, this thread is about buying property in Spain and both prices and estate agents contributing to the inflation of prices and value-for-money (VFM) have a lot to do with this

There is always a bone of contention where poor VFM is being offered, to those who have more sense than money. Indeed I could talk about the solicitor that charged me £450 for one letter, some time ago, but that would be beside the point.

Irrespective, it is clear that there are a large number of people who believe that Estate Agents are charging too much, or attempting to inflate house prices in Spain - although the latter may not be something one can hold against them if it is in the interests of the seller. Equally, there are some people who either protest, or suggest, that Estate Agents are charging justifiable rates in the current market.

I guess that this is one of those subjects that is always going to rage to and fro, particularly if the two camps are made up of opposing factions with vested interests. Probably best to rest the discussion for a few more months

In the meantime, I note that UK house prices rose moderately in January. I will certainly be watching the Spanish market with interest, at this stage, rather than investing, until I feel a little more confidence. Some will still recall the UK house price crash of the early 90s where many were plunged into negative equity, largely brought about by Lawson's interest rate hike in an attempt to control inflation. Inflation is currently beginning to show signs of being a problem in Spain ...

Charles_Austin

Well, I don´t know but it seems there are quite a few people writing in this post who have a hidden agenda. Emilio for instance. Do you by any chance own a Estate Agency?

And for those of you who still don´t understand the very unlawful way of doing things of Spanish Estate Agencies you may want to have a look to this video (recorder by a reputable television program using a hidden camera):

http://www.youtube.com/w/Especulacio...earch=denuncia

So next time you go to an Estate Agency and they tell you "yeah no problem you can buy here" think twice before proceding with the legal documents.

Charles.

Unexpat

What the video shows is that there are indeed plenty of sharks in the Mediterranean, but it has to be said that they are not just Estate Agents. There are also speculators and developers without scruples, or little moral conscience. The Estate Agents just get on the bandwagon with them.

Pisos de proteccion oficial are intended to provide dwellings for those that are unable to afford to buy their own home in the current market. To qualify one must have a family income of less than €36,000 p.a. and not own any other property.

However, the video shows (amongst other examples) a flat owned by the developer, on the market for 100 mil pts of which 40 mil pts are declared on the deeds and 60 mil pts are being asked for in "black money" (dinero negro/dinero b). The unusually large differential between declared and undeclared value here, is due to the law that limits the price of the dwelling due to it's "protected" nature.

This is a sorry example of an odious practice where the submerged economy is adding to the problems that exist in the housing market. It does seem that the law has problems achieving its objectives whilst the sea in which the sharks are swimming is so full of "black money" chum.

mitzipurr

Well why dont you poollounger you will earn a fortune! Despite what you say and whatever bone of contention I have or have not with estate agents. Please tell me what they do to earn a wage of at least 100 euros a hour. Oh and by the way I worked for the IR for over ten years and I had over 5 years of intensive training and many examinations to pass!!! As for Harley Street then that is up to individuals if they agree to the amounts of charged for such things I would imagine the specialists involved in such practices have had years of training. I think from the long list of well paid jobs you would not care to do will all involve some kind of training and examinations to be achieved. As for junk food and cigarettes you would not get me partaking of either but many people like them and it is their bodies and their decision if they choose these things. It would be great if you could explain exactly what qualifications are needed to become an Estate Agent???

mitzipurr

Oh and furthermore Poollounger I recently viewed a house. The agent had no idea I could understand Spanish. I overheard the agent asking the builder the price which was 177.000 the agent wanted 205.000. I rest my case.

mitzipurr

A very good post indeed. The video is very scary and a warning to all. Trust no one and believe nothing you are told and do as much research and checking as you possibly can. With regard to black money. What about a certain lawyer under inverstigation for laundering 600 million euros. He was unfortunate he got caught but I bet there is a h--l of a lot more that dont.