Buying in Valencia

There are so many variations within international property markets regarding what is customary and habitual that it is shocking to look at Spain and the differences that we have within the country itself.

Of course, real estate agents have to earn money somehow, and in the majority of Spain, agents usually do so by charging various commissions depeding on the property price and personal preference.

The commission rate for agents really depends on the area of Spain.  In Madrid, the rate fluctuates between three and five percent, whereas along the Costa del Sol, a five percent rate is almost guaranteed if an agent does a good job.  In Cantabria, the rate is usually lower, around three perccent.

In the area of Valencia, however, we see that agents usually take a fee from both tbe buyer and the seller!  That's right, they will even charge the person buying the property....can you believe it?  Real estate pros in the area even argue over this part of the process, not to mention agents from the other parts of Spain who find this practice unjust.  Please read the 10 COMMANDMENTS OF THE SPANISH BRICK for more information about how to protect yourself as a buyer and a seller.

There are options, however.  “In Madrid they charge all the commission to the seller but here in Valencia we are doing things differently and we share the charges between the seller and the buyer” says Nicolás from Casamagna Real Estate.

Let's take a look at some of the different situations here.

As an international customer, either buying or selling, there are various situations to keep in mind during the process.

1.  Agents tell buyers that they will pay a fee and the buyers do not agree to the terms.

2.  The buyer is unaware of this custom, and, upon paying the initial deposit, realize that they owe an additional 3% fee to the agent.  This is always surprising and unwanted and the buyer needs to decide what to do about the additional fee and the property.

3. Buyers know about this practice and go along with it.

4.  Buyers find agents who do not require this commission, which narrows the field drastically.

Fees for buyers:  A real-life example

A nice property was inherited by three children, and they wanted to sell it.  During initial showings, the property was not officially in the name of the three children.  Once a buyer decided to purchase the property, he was stuck with all the fees, even the fee of getting the name on the deed changed. Everything had to come out of his pocket and not that of the sellers.  This is unfortunate, since people interested in buying in Spain are decreasing in number.

The conflict

There are two sides to this story.  In the case that a seller makes less off of a property than expected, the buyer is still the one paying all the fees.  The seller may end up in the negative in the end, if he or she is selling for less than their original purchase price, so the buyer may very well end up getting stuck with any additional fees.

Not everyone is on board with this, however.  Trini Martínez, freelance property finder in Valencia working for The Spanish Brick, says, "in the "good" times, when prices were rising and there was a lot of cash, prices were made up in order to make the buyer pay everything at 100%. Now, the seller really needs to sell and he is sacrificing price (revenue) in order to get the buyer with him and get the transaction completed. From my point of view, the seller now has liabilities and expenses in the selling process”.      

Buyers don't always know what is happening, especially if trying to buy from overseas.  Numbers can be invented, and commissions can be hidden.  That's why we believe that the best option is to hire a professional who will work on your behalf as the buyer.  Then, you are paying someone to be on your side rather than paying the same agent who gets a commission from both you the buyer and the seller.

All talk of commissions and fees aside, if you can score a good deal even after fees and commissions are tallied up, it's still a good deal.  

Investors pay us directly at The Spanish Brick, and we then do all the work that needs to be done.  We know all of the details involved and we can negotiate on their behalf.  In addition, we will find you the best deal possible if you agree to work with us exclusively.