Overseas Real Estate Agents – You get what you don’t pay for
Many criticisms have been levied at overseas real estate agents over the years, some deserved and some less so, but one unfair accusation is that they ‘charge too much’. They don’t – their advice comes for free. There is a misconception that by going direct to the developer that is building the resort, the customer will achieve a better price as they won’t ‘add on’ an agent commission. This couldn’t be further from the truth. The agency commission is already built into the list sales price so by cutting out the middle man, the only winner is the developer who boosts his profits by not having to give the pre-budgeted cut to an intermediary agent. It is almost unheard of for a developer to pass on a saving to the client in the event of making a direct sale. But worse, by going direct, the customer misses out on the benefits of someone independent acting in their own interests – free of charge.
A developer, by default, is biased towards his/her own product and his/her own profit margins. (S)he will never suggest comparable projects in similar locations, but gently steer you towards the property in his/her resort that (s)he wants you to buy. This can also be the case with large agents who take on multiple units on an ‘exclusive’ basis, they too will ‘guide’ you to the best deal for them, not for you. A genuinely independent agent on the other hand has a catalogue of products in different locations to suit every customer’s tastes and budget. If one property doesn’t appeal, there’s another round the corner that might. An agent will allow the customer to lean towards the property that they want to buy. Once a decision has been made, it is now at this point that the customer starts to get what they’re not paying for.
Miles Beacroft, Sales Director for western Costa de la Luz-based agent, Titan Properties, comments, “Developers need agents like us to sell their products which puts us in a strong position in the negotiation process. On our clients’ behalf we can bargain over payment terms, smooth the waters if there is a delay in raising finance or even switch their unit if they have a change of heart. Major developers consult with Titan Properties on everything from design and communal facilities to pricing and payment terms, so that our customers are really looked after in terms of value and comfort”. Miles continues, “Agents, unlike large developers, are hell-bent on making sure that we create happy customers so that our door is left open for referrals and repeat business. We will impart our local, legal and financial knowledge freely and honestly in order for our customers to form the most balanced decision. We also throw in personal, customer care after the sale and could quite possibly become our customers’ first friend in Spain – we get a lot of house warming invitations!”
Another key criticism is the commission rate overseas. In Spain agents may get 5 or 6% commission whilst their UK counterparts have to settle for 1 or 1.5%. Do they deserve it? Well how many UK agents do you know who have to do airport pick-ups on a Saturday night, neglect their families for a weekend, drive hundreds of kilometres between developments on a daily basis, feed, water and entertain their clients, sell their wares at international property exhibitions, fund Europe-wide advertising campaigns… thought not.
River View - River View is a secure, gated development of 70 luxurious three bedroom villas with sublime views of the River Guadiana and across to Portugal. Each benefits from split air conditioning systems, private parking, a fully equipped kitchen with white goods and a vast 50m² roof terrace as well as 36m² of terracing on the first floor and ample ground floor patios. Titan Properties offered design input such that the villas have an open-plan kitchen – living area separated with a handy breakfast bar. The resort boasts on-site facilities from two swimming pools to paddle tennis courts and a clubhouse with modern gymnasium as well as access to all of the commercial, sporting and two 18-hole championship-standard golf courses of the macro resort of Costa Esuri in which it sits. Prices start from 395,000 euros for a three bedroom three bathroom apartment with private garden and option for private pool. Plot sizes range from 500m² to 620m².
For further information, visit titan-properties.com.
