Quote:
Originally Posted by Topcat1961
HI Jain
Is there any way that people can obtain figures for what agents' fees are on each property as I've also been told that this figure is also taken away from the purchase price? I'm not blaming the banks or how they operate but |I do think that it is irresponsible of the agent not to mention these extra costs. basically I'm paying in cash for the agents fee without knowing what it is or having agreed to it. This is not the same as in the UK.
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Ya it is unfair but really there isn't a way you can find out. The Deposit and the 30% go to the developer. The developer at a later dates gives commission to the property company. You could alway ask them but usually they may make a joke about it or tell you a lie. Its rare a rep will tel you the truth about this aspect. Sometimes the reps don't know either.
Well you can expect for a off plan development the agent is getting between 15% and 20 % in the emerging markets.
The big companies that host the most exhibitions around UK and Ireland have a lot of leverage because they get people to go on inspection trips, 100's per month. The Developer that give them the highest commission will get preferential treatment as the agent on the ground will also receive a higher cut when they sell.
Big companies get 15% - 20% of the sale price, the rep that you meet at an exhibition will usually get 6% of this and the Sales Rep you meet out in Bulgaria or else where usually gets 12% as well.
In Brazil the commission to big companies is up to 30%.
In France and Spain is between 10% and 15%.
There is always a lower commission on resale properties (built properties). This is why you may be finding it difficult to sell a property after complication, because the property companies would prefer investors to always buy off plan as they get more out of it and it easier to sell 200 units under than one roof than onces completed in different developments.
The development you bought in was 15%- 20% to the property company.