Own in Spain? Thinking of selling up or been trying to sell for while? You need to read this!
New Fixed Fee Agency Launches
AIPP member agents, inetcasas recently launched a fixed fee Estate Agency in Spain. The team behind the company are very experienced professionals with a long track record in property sales.
The Alliance has taken a look at how sellers and buyers benefit from using a fixed fee estate agent when selling (and buying!) in Spain.
inetcasas is currently offering apartments for sale in La Manga, see below
Over recent years we have seen the emergence of fixed fee estate agencies in the UK and other countries which has quickly become one of the tried and tested cost-effective routes to sell a property. In Spain however it’s relatively new, there are currently around a handful of companies offering this service, most of which are Spanish Estate Agencies based in the major cities like Madrid or Barcelona with a spattering of more locally based International Estate Agents up and down the Costas.
They all pretty much offer a similar service – low fixed fees payable in advance ranging from €950 to €4,000. Their property advertising strategy is straight forward and generally along the same lines as commission only agencies.
Example of villa property currently for sale on inetcasas
With this in mind what drives the Spanish real estate market? Is it international buyers?
Well no as they account for around 17% of the total sales in Spain, it’s the Spanish nationals themselves that account for the lions share.
So what do Spanish nationals buy?
The same as you! They live in apartments, bungalows and villas just like the rest of us. The market is the same for everyone, however the real question is – how do sellers reach potential buyers in order to obtain an offer on their property?
As a seller you actually narrow your possibility to obtain the best price in the fastest time when you list your property with an Estate Agency that only targets its own nationality.
There is however a very important point that stands out with a fixed fee real estate agency. The cost! Yes, the money a seller can save against paying a higher commission which also benefits the buyer too.
The seller knows they are marketing their property on a fixed fee basis which covers the entire cost of advertising before the eyes of potential buyers. intecasas take 4K, HD photographs, produce a 3D, 360 walk-through interactive virtual tour then market the property on over 50 of the biggest and best performing property portals in Spain and Internationally where combined they have over 50 million visitors per month.
This makes it easier for potential buyers to visualize a property and easier for the seller to set a price that they will be happy with which ultimately benefits the buyer too!
Do the calculation yourself;
Say you have a property that sells for €200,000 with an average commission rate of 5% = €10,000 + 21% IVA (VAT) making a total commission cost of €12,100
That’s a pretty penny!
After deducting the commission of €12,100 this leaves the seller with a total of €178,900, however the buyer still pays €200,000
Say the seller chooses the inetcasas premium offer at €999 (incl. IVA) instead. That would increase the final proceeds to the seller by €11,101
Here’s the kicker…
If the seller uses inetcasas to reach potential buyers using their fully comprehensive marketing strategy, cutting edge materials, vetting service for buyer inquiries and booked viewings then the seller will have 11,101 reasons to negotiate with the buyer and still will not lose a euro over what he/she would have achieved by selling the property via a commission based real estate agency.
Now, that’s food for thought isn’t it?
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