Updated on Wednesday, September 15, 2021 – 12:14
Traditionally, real estate agencies have charged commissions for their mediation in the acquisition or sale of a property. But for a few years there have been other firms in the market that claim not to receive any percentage. Are they then free?
Online real estate companies do not receive commissions, but they are not free either.
For a few years there have been in the market new real estate companies that claim not to charge commissions for the sale of an apartment, neither to the buyer nor to the seller. But how is this possible? Are they free real estate? From the financial comparator HelpMyCash.com they respond to this concern.
Commission-free real estate does exist, but they are not free. By definition, a commission is the “percentage that an agent receives on the proceeds of a sale.” In the real estate market, traditional agencies have always worked under the commission model. In general, these offer their services to sell an apartment in exchange for fees that range between 3% and 7% of the sale price. Even, as they have been able to verify from HelpMyCash, many also charge a commission percentage to the buyer that, in general, is around 3%. Thus, the total cost of the purchase and sale procedures, sometimes, reaches up to 10% of the price of the house, which is high for many sellers and buyers.
In this context, the new real estate companies, which began to appear around 2016 in Spain, wanted to differentiate themselves from the traditional ones through their rates: online agency plans are up to 80% cheaper. But it is not only the price that is the differential value of these agencies, but they are also characterized by offering a certain series of services at a fixed price.
For all this, it is said that online real estate companies do not charge commissions. Returning to the previous definition, these agencies do not receive a percentage of the sale proceeds, but they are not free either: charge a fixed fee that is determined at the beginning of the process. For example, the sale of a property for 200,000 euros could cost around 5,000 euros, depending on the digital real estate agency chosen.
Why are they cheaper than traditional agencies?
Mainly, online real estate agencies are cheaper because digitized the sale of the flats. This allows that they do not have offices distributed throughout the cities, as happens with real estate franchises, and costs are reduced. In addition, their services are more limited: almost all of them propose that the vendor be in charge of the visits and who manages certain documents, such as the habitability certificate or the energy certificate, they assure from HelpMyCash.
In this way, online agencies without commissions propose a new way of selling an apartment, which serves sellers who are more familiar with the digital environment, conclude from HelpMyCash. In this sense, although saving is an attraction when choosing, it is important to know in detail how online agencies work before deciding to hire them.
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