The sale of a home is one of the most important economic operations in life. But beyond the profit the owner can make, it is also an expensive transaction. According to the experts at HelpMyCash.com, a website dedicated to real estate comparison, the expenses for the sale represent between 5% and 15% of the price of the property. Among these expenses, the real estate commission stands out as one of the most significant.
Experts point out that agency fees range between 3% and 7% of the price of the property, plus the corresponding VAT. Fortunately, there are some strategies that allow you to reduce this expense to minimum levels. Which are? Comparing real estate agents is a good starting point, but you can also consider negotiating with the agency or hiring real estate agents online, which offer cheaper fixed rates.
Comparing real estate agents allows you to have a clear idea of ??the fees that they usually charge in the area where the property is located. This helps to identify and, in some cases, to rule out those real estate companies that charge commissions above the average, as long as the owner’s objective is to save or reduce the costs of the operation.
HelpMyCash experts stress the importance of comparison. And it is that some agencies charge up to 7% more VAT to the seller and 3% to the buyer, which adds up to a 10% commission. This amount is considerably higher than average, and the owner could access the same services for a fee of between 3% and 5% plus VAT. “But how would you know if you haven’t compared real estate?” emphasize the experts.
And that’s not all. Knowing the average fees also provides a solid basis for negotiating the commission with the real estate agency in question, especially if you are requesting an exclusive commitment. “In general, a reduction in the real estate commission is usually requested when it requires a commitment to exclusivity,” say the experts. And they add that, many times, it is the agency itself that offers the lowest fees if the sale is given exclusively for a period of three to six months.
In addition, if the home is located in an area with high demand, such as Madrid or Barcelona, ??where there is also a shortage of housing supply, the owner can negotiate a reduction in the commission before signing the brokerage contract. “Until the contract has been signed, the owner has the power to negotiate. Once it has been signed, he must accept the conditions established by the agency,” they explain from HelpMyCash.
Another option to take into account are online real estate agencies, which offer their services to sell a home in exchange for charging fixed fees of between 2,000 and 8,000 euros. This means savings of up to 80% compared to traditional fees. And although they are an interesting option for those who prioritize reducing real estate fees in the sale, HelpMyCash experts point out that this type of real estate agency does not include all services.
“Although they represent significant savings, they do not include services such as visits or document management such as the energy certificate or the habitability certificate,” they say. For this reason, they advise hiring these agencies only if the owner has the necessary time to take care of some procedures.
