The Real Estate Commission in Mallorca: who pays what and the Pros and Cons of For Sale By Owner
Estate agency fees are a contentious issue in Mallorca. As there is no government body to regulate real estate agencies in Spain nor is there any regulation on fees and commissions, property sales fees can be anything between 3% and 6% of the final sale price which could mean as much as €12,000 in commissions on the sale of €200,000 property. The agency fee can be added to the total sale price or included within it. You may also find the same properties listed at different prices on different agency portfolios or shared between agencies. Either way, agency fees are charged once the deal is closed, after signing the title deeds.
Who pays the commission fees in Mallorca? Generally, the home seller pays the full commission for the services of both their listing agent and the buyer’s agent(assuming the buyer has one). In this case, the Buyer’s and seller’s agents split the commission.
What Is For Sale By Owner (FSBO)?
For those hoping to maximize profits on a home sale, selling the property without the intermediation of a broker is an appealing option. One reason sellers choose this option is to avoid paying the real estate agent a commission on the sale. However, regardless of whether you want to sell your home to walk away with more money or retain more control over the sales process, you need to consider the benefits and risks of selling your own home to do it correctly. “For Sale By Owner” will involve time, expertise, resources and emotions. Hereafter we will share some tips on what you should do to make selling your home on your own a success.
Once you have decided that this method is right for you, for you have the time or the resources to prepare, market, and show your home yourself you should:
Price it correctly. This can be a challenging task if you lack a comparative market analysis to price your home appropriately.
Prepare to Show Your Home. After pricing, the next hurdle to overcome is preparing the home for listing and viewings to make it attractive to buyers. Decluttering it, improving lighting, and making cosmetic repairs will help you to show the home’s potential,”
Get Serious About Your Listing. While homeowners have options such as Facebook ads or setting up a dedicated website, gaining visibility on these sites can be a real challenge. Creating a budget to advertise your property or promote it on a large real estate website is paramount to boost global exposure and get it in front of the right audience.
Be Flexible and Responsive to potential Buyers. Be prepared to put in the time to respond to inquiries and calls promptly, provide quality information and show the house. responsiveness is key if you do not want your potential buyer to move on to the next property.
Negotiate the Price. Buyers often expect there will be some haggling over the price, just be prepared.
Hire a Real Estate Lawyer The paperwork for home sales is extensive. If you’re not using a broker, you do need to use a lawyer, and preferably one who specializes in real estate transactions. Your peace of mind will be worth it.
In conclusion, depending on the experience of the seller, avoiding the commission could be a wise financial decision.