Understanding commission fees and responsibilities in Spain is vital for effective navigation of the real estate market for both buyers and sellers. Proactive management of payment obligations can lead to smoother transactions. That’s the role of BlancaReal.
COMMISSIONS
- Who pays the commission : in Spain, the seller typically pays the real estate agent’s commission fees, which usually range from 2% to 8% + VAT of the final sale price.
- The commission is always included in the sale price unless a buyer hires his own agent and therefore needs to negotiate fees directly.
- Reasons for commission fees: The commission compensates agents for services such as property listing, marketing, organizing viewings, negotiating offers, contracts, translations, verifying property paperwork and checking the feasibility of the operation.
- Negotiating rates: Sellers can negotiate commission rates before signing contracts, understanding local benchmarks and what services are included.
- Payment: Commissions are usually paid upon completion of the sale, deducted from the proceeds before the seller receives their portion.
- Market impact on rates: Commission rates can vary based on market conditions. In a seller’s market, rates may be higher due to demand; conversely, a buyer’s market may lead to more negotiable rates.
- Property type effects: Different property types, such as luxury or commercial properties, may incur higher commission fees due to their complexity and value.
WHY USING A REAL ESTATE COMPANY
Buying or selling through a real estate agent may seem cumbersome at first, but it ultimately saves time and money, especially for those lacking experience and patience.
- Important considerations: Buying a home involves more than just the purchase price; it includes mortgage interest, taxes, and future resale potential.
- Time and peace of mind: A real estate agent not only saves you money but also time and stress by managing searches, verifying property burdens, and handling utility connections.
- Hidden risks in direct purchases: Buying directly from a seller may seem appealing, but hidden risks can lead to significant losses.
- Experience matters: the preparation and expertise of a real estate agent can greatly impact the success of your property transaction.
- Importance of market expertise: agents leverage their market knowledge to justify their commissions by maximizing property sale prices.
- Comprehensive services offered: realtors such as BlancaReal offer various services, including property valuation, marketing, negotiation assistance, marketing, market study and legal support.
- Clear agreements necessary: we help both parties in having explicit agreements outlining when and how commissions are paid to avoid misunderstandings.
PURCHASE COSTS
- Buyer’s Costs: while buyers usually do not pay extra agent commissions, they should budget for additional expenses:
- Notary fees & land registry: max. 1% of the final sales price whether second-hand or new-built purchase.
- ITP or transfer taxes: 7% in Andalusia and ONLY for second-hand properties
- AJD or stamp duty: 1,2% in Andalusia and ONLY for new-built.
- VAT of 10% ONLY for new-built.
- Legal fees: for example, BlancaReal fees are 1% + VAT
Seller’s Costs:
- Plusvalía or added value calculated by the Town Hall; at BlancaReal we calculate the exact amount to be paid.
As a conclusion, BlancaReal is your best ally. If you decide to buy or sell a property on the Costa del Sol, reach out to us. As a real estate agency since 1969, we provide comprehensive services to streamline the process and assist you with your new Life project.