Sleep is for people without access to a buyer's agent.~ Lighter Side of Real Estate
Mallorca is a beautiful place. Buying a house here is not always a pleasant experience. My husband has been here since the mid-1960s. I’ve been on and off the island since 1984. We love the island and created Affordable Mallorca to help others find the home of their dreams and minimize the stress. Whether you are looking for a townhouse, a finca or an apartment, we’re here to represent you on Mallorca.
Why use a buyer's agent? #
We can take the headache out of home searches. A buyer's agent will find potential homes that fit your criteria, communicate with sellers and their agents, and represent your interests when negotiating a home purchase.
A good buyer's agent can act as a guide for finding the home of your dreams. We can provide you with a knowledge of the areas of interest, arrange viewings that fit your criteria, negotiate on your behalf support you throughout the home buying process.
Some people might think they can save money and time by working with the seller’s agent instead of hiring a buyer's agent. But home buyers and sellers have inherently distinct goals, especially when it comes to negotiating the terms of purchase. Having the listing agent represent you as a buyer is an example of dual agency, at the very least creates a conflict of interest. You want your own buyer's agent who's firmly on your side.
What is a buyer's agent? #
A buyer's agent is a real estate professional who represents the purchaser's interests in a real estate transaction. They play a different role from the listing agent, who represents the property's seller.
Most residential real estate agents work with both buyers and sellers. For example, when someone is selling their current home and buying a new one, they'll often use a single agent who will be their listing agent for the home sale and act as buyer's agent on their home purchase.
Some home shoppers might think they can take a shortcut to making an offer on a home by working with the home’s listing agent instead of hiring a buyer's agent. But home buyers and sellers have inherently distinct goals, especially when it comes to negotiating a purchase price. Having the listing agent represent you as a buyer is an example of dual agency, which is illegal in some states and at the very least creates a conflict of interest. You want your own buyer's agent who's firmly on your side.
We have worked as real estate developers for over 45 years and have retired from actively developing commercial properties. We have also been on the island as both commercial developers and private residents. We know the process and nuances of searching for and buying property on the island.
Who pays for a buyer's agent? #
Real estate agency fees are a contentious issue on the island and in Spain. There is no government agency that regulates property agent fees in Spain. There is also no regulation on fees or commissions. The norm is 5% but the range is 3-8%, depending on the property. This means the seller pays €9,000 to €24,000 for a €300,000 property.
The agency fee can be added to the total sale price or included within it, depending on the listing and negotiation. You may find the same property listed on different listing sites and agency portfolios, or shared between agencies. Either way, agency fees are charged once the deal is closed, after signing the title deeds.
What's a buyer's agent's purpose? #
As a buyer’s agent, we support you through the entire process from search to close.
Scope of services we provide:
- Find appropriate properties for sale or rent. We help you understand the type of properties you can afford in the current market by matching your needs and price range. We then help you narrow your options to the properties worth considering. We have over 500 articles in our magazine on Village Profiles, people and the unique aspects of island living.
- We know the island. If you’re not a local, a buyer’s agent can provide you with the Affordable Mallorca tips to schools, neighborhoods and more.
- Set up property and island tours. Scrolling through photos online isn’t the same as viewing a property in person. Before you travel to the island, we can provide virtual tours and other tools to better see the property and area. We also fill you in on anything we learn about the property and owner’s so you can better match your timing and expectations.
- We help you make an offer. After you have decided on a home to buy, we will advise you on how much to offer and what contingencies to include in the contract. We can explain contract terms and walk you through each step of the purchase process.
- We negotiate with the Seller. We will provide real time information about the seller’s response to your offer and advise you on the next step which may include a counter offer to negotiate price and terms.
- We refer you to other professionals. We have a network of professionals, such as attorneys, movers, construction, inspectors and decorating professionals.
While we aim to help you navigate your move to Mallorca, we understand this is a major financial decision. Emotions may run high so we are here for you to rely on for the best possible outcome with the least amount of stress.
How does a buyer's agent get paid? #
The seller usually pays the real estate agency commission, which is shared between the seller’s and buyer’s agents. Who pays is made clear in the purchase agreement, which both the buyer and seller have to sign once an offer is accepted.
Separately, you will sign a contract with us, outlining the scope of duties and how long we will be committed. Under no circumstance are you obligated to stay engaged with us but we do ask for a notice, in writing when you decide to change our relationship. If you decide to buy a home with a different buyer’s agent, we ask for exclusivity on our agreement for a minimum of three months.
Because we only get paid from the seller if your purchase is through our relationship, we ask for a one-time onboarding fee of €1,500.00 that allows us to exclusively represent you in certain property transactions. This means that we will not show properties of your interest to any other client until you decline to proceed with that property.
We are available full-time for the length of our contract, supporting you in all aspects of your relocation needs. Our fee will be credited back to you at the time of closing. If you do not close on a property, this fee is non-refundable.
Questions to ask a buyer's agent when interviewing. #
Before you select us as your buyer’s agent, we suggest that you interview others. Purchasing a home on Mallorca is a major transaction and can be a lengthy process. You’ll want to find someone who will stay in touch with you in a timely manner on WhatsApp, Zoom/video conference or mobile.
Here are some questions you can ask:
- How long have you been on the island? Make sure the agent has a solid local network. This is imperative to navigate the bureaucracy on the island.
- Availability and schedule. If you have questions or issues to resolve, you want a person able to respond quickly.
- Communication and working style. Do they prefer phone or text? How often can you expect to hear from them? These details reveal a lot about working styles, so you can choose the agent with an approach that fits your needs.
- Property Searches. How will the agent find listed homes in your price range? What strategies do they use to guide buyers through a competitive market? What villages, towns, or regions do they work in the most? Ask how the agent helped other buyers like you find properties.
- Making offers and negotiating. How will the agent help you make competitive offers and negotiate with sellers? What challenges could you face on Mallorca? A good agent will set realistic expectations.
- Thoughts and feelings. An agent may have all the qualifications on paper to be successful but might not be right for you. Does the agent's interpersonal style mesh with yours? Is this someone you could trust to look out for your interests? Good rapport can matter as much as the agent's experience and competence. While the industry names have international offices in major cities, do the agents know how to navigate the island’s issues?
If you are serious about relocating to Mallorca, we can help you sort out each aspect of your move from guiding you in finding the perfect property for you to shipping your household items to the island and getting set up with health care insurance, and more.
For more information on our concierge service without a concierge price, contact me at [email protected] to set up a video call.
How will buying a home in Spain affect my taxes? #
If you questions about your taxes and how to remain compliant with both your country of origin and Spain, we recommend Taxes for Expats. Click here to connect.
With over 4,000 reviews and 30,000 clients in 193 countries, Taxes for Expats has streamlined the filing process to keep you compliant for simplified tax planning and filing.
- Personal experience
By Memphis Holland
13 February, 2023