This is all that agencies do not tell you about the Real Estate Commission

The procedures for selling a house are numerous and tedious.Therefore, it is logical that in order to pave this arduous road many owners decide to request professional help.Real estate agencies are responsible for practically the entire sales process, from ads, visits, negotiation and paperwork, in return, of course, of fees.These are known as the Real Estate Commission, a amount that is not currently regulated and that, usually generates controversy between vendors and buyers.The financial comparator HelpmyCash.com solves the main issues related to the real estate commission that every seller should know, but that is not always clear.

What is the real estate commission?

The real estate commission is the amount of money that an agency charges to a client for its intermediation services in the sale or rental of its home, explains Helpmycash.These fees are not regulated by law, therefore, each agency acts based on their policies and interests.In addition, although the commission is always applied to the client that resorts to the agency to sell or rent the house, in turn, many real estate agencies add a percentage of commission to the buyer.This is an important point against taking into account, Helpmycash warns, since there is a risk of losing many sales opportunities.

How much does an agency charge for selling an apartment?

The real estate commission, in general, represents between 3% and 7% of the sale price of the floor.However, it is not possible to determine an exact percentage, because each agency defines the amount of its fees.That is, some charge 5% in all cases;Others charge 3% if the sale price of the floor is high and 7% if the value is low.But, as this article includes in the previous paragraph, many fees to both the buyer and the seller: from HelpmyCash they have been able to verify certain cases where real estate companies charge up to 5% commission to the seller and 3% to the buyer, so thatThe fees amount to 8%.

"It could be believed, at first, that the fact that an agency charges a commission to the buyer reduces the load for the seller, but not only is not, but it can be harmful," they say from Helpmycash.The real estate commission, many times, is outside the budget of the buyers.Therefore, sales can fall, or buyers can make purchase offers for values much lower than the sale price to compensate for this expense.When this occurs, the seller assumes the buyer commission indirectly.

Alternatives to the Traditional Real Estate Commission

The real estate commission has been transformed since the appearance of online agencies.Since 2016, these propose a new business model where they use all the advantages of the web to sell a floor.Thus, they can reduce costs, so their fees are cheaper than those of traditional real estate.They are said to be "real estate without commissions" because they do not charge a percentage on the sale price, but offer a series of services determined with a fixed price.In addition, they are up to 80% cheaper than traditional agencies.

"To have a precise idea, the average price charged by an online real estate to sell a 250,000 euros floor is approximately 5,000 euros," they say from the comparator.However, this amount varies depending on the contracted agency, the sale price of the floor and the moment in which the commission is decided (at the beginning or with the signature of the Rast).If you decide to pay at the beginning, for example, the rate is reduced to 2,000 euros."This value, obviously, is cheaper than the commission of traditional agencies, which would range between 7,500 euros (3%) and 17,500 euros (7%)," experts add.

Differences in the services provided

The difference goes beyond the price.And it is that the plans of digital real estate do not include the same services.The traditional ones, with small changes according to their offer, usually include: the assessment of housing, the online marketing plan to promote the sale, organization and reception of visits, filter buyers, negotiate the purchase terms, manage themandatory documents and write the Rasta contract and prepare the documents for sale.

Most online agencies propose, for example, that it is the seller who is responsible for visits and do not include in their fee the management of the energy certificate or the habitability card (which is only mandatory in some communities).To process these documents, the client will have to pay an amount of extra money that, in general, does not exceed 300 euros, warns Helpmycash.

When is the Real Estate Commission paid?

The moment in which the Real Estate Commission is paid will depend on the type of agency chosen by the seller of the floor and the type of rate you hire.In practice, although many traditional real estate agents claim that they charge their fees with the signing of the deed of sale, the truth is that the majority charge all or 50% with the signing of the Rasta.On the other hand, in the case of online real estate, the time of payment will depend on the type of contract contract.There are two kinds:

-Prepaid Tariffs: They are cheaper (they range between 1,000 and 2,000 euros), but the payment is made before putting the house for sale.

-SPAGO TARIFAS: In general, online real estate companies charge their commission at the time of the signing of the Rasta.

"This is relevant when hiring an agency because many vendors, for example, plan to use the Draw money to pay the signal of a new home, but then they find that this is not possible," they say from the comparator.

Can you negotiate?

Yes, the real estate commission of traditional agencies can be negotiated in most cases.For example, it is common that, when an agency is hired, the sale price of the floor and the percentage of commission is defined.But if later the agent suggests lowering the sale price, the seller can also negotiate to lower the real estate commission.This does not mean that the agency will accept it, but many times it works and manages to balance the expenses of the seller in relation to its profits."Knowing the small print of the real estate commission can help many vendors make sales decisions more clearly," they conclude from the HelpmyCash comparator.