How much are sales commission and other fees?
A property seller asked what the sales commission and fees are to list and sell a property. The seller’s second question was: what happens if an outside source provides a buyer. So, I’m taking advantage of these questions and put it all in one blog.
Century 21 Ballena Properties does NOT charge any upfront listing fees. The sales commission negotiated into each successful real estate deal made with Century 21 Ballena Properties is equal to 8% of the final sales price paid for the home. For the sale of a Lot or parcel of land, the commission is equal to 10% of the final sales price. In exchange for this commission Century 21 Ballena Properties and their respective agents provide several crucial and professional services that assist in a smooth and challenge free transaction. Read our previous blog for more information about a realtor's role in a real estate transaction.
In the southern zone of Costa Rica there exists a Multiple Listing service that is honored by all the participating Realtors in the area. Therefore, the sales commission we charge is not negotiable, as we share this commission with these other real estate agents 50/50 when they bring a buyer. The sales commission is ALWAYS paid by the seller and paid to the realtor on the day the transaction closes. At Century 21 Ballena properties we do not get rewarded for our efforts until the deal is successfully completed.
When you sign an exclusive listing agreement with Century 21 Ballena Properties, we share it with every other real estate company on the Ballena Coast – creating a unique and extremely functional MLS system!
With exclusive listings, we allocate additional funds into marketing your property! These marketing dollars go into local and national magazines, biweekly newsletters, social media and on all of our user friendly and searchable websites that we maintain.
Sales commission agreement
Some sellers ask if they need to sign a sales agreement. YES!! When you are ready to sell your property a Century 21 Ballena Properties agent will present you with a Listing and Commission Agreement stating all of the legal particulars of the property, the sellers information and the terms and conditionals under which we will market and sell your property. In this agreement, we always include clauses that state who is responsible for the payment of the legal fees, closing costs, sales commission and the government taxes due on the sales commission.
Our agent is not your property manager unless you pay for that service. You need to keep the lot clean, existing fences in good repair at all times, and utilities (if available), property tax and corporation tax paid yourself. The agent has no other responsibilities than selling your property.
The seller needs to be available by email, at all times, so you can respond within 24 hours to any offer we might receive. We always insist, no matter how bad the offer is, that you make a counteroffer
C21 Ballena Properties will do everything possible to market your property on our own websites, social media, magazines, newsletters and other marketing tools available.
Our agents do not get involved in quoting legal fees and closing costs. Although closing costs are often shared 50/50, the buyer will usually negotiate the asking price. This gives the seller the option to counter and request the buyer pays the legal closing fees.
For more information about the process of buying or selling a property in Costa Rica, we recommend reading our previous blog.