Estate agent contracts

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Robin
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Joined: 04 Sep 2018 19:02

Estate agent contracts

Post by Robin » 12 Sep 2018 16:28

Hi there,
I was wondering whether you can help. I share a piece of land with another family member and we are currently in the process of advertising it.
The estate agents who have shown interest in the property are asking for a 6month period of exclusivity, where 5% commission goes to them regardless of whether the interested buyer was found by them or not. I know the chances of selling privately are low, however is this reasonable or common practice?
Any advice is welcome,
Robin



Pantheman
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Re: Estate agent contracts

Post by Pantheman » 12 Sep 2018 17:41

If you sign exclusively (which you shouldn't) then you cannot sell it and if you do he is entitled to his fee whether he brings the buyer or not.

Simple answer, don't sign exclusivity, there is no gain unless he drops his fee to say 3%. Otherwise place it with 2 or 3 other agents on a no sale no fee basis.


For all your property needs, we offer Trust, Integrity, Honesty.
FSB Properties Ltd
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Robin
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Joined: 04 Sep 2018 19:02

Re: Estate agent contracts

Post by Robin » 12 Sep 2018 17:55

Hi Pantheman,
Thanks for your quick reply. This is my gut feeling too. Are there any agents in the paphos district which you would recommend? Or any online platforms for people selling land in cy?
Would you also recommend a lawyer at this stage to represent me, especially as I live abroad?
Many thanks,
Robin



Pantheman
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Re: Estate agent contracts

Post by Pantheman » 12 Sep 2018 20:20

Robin,

first off selling land is not as straight forward as selling a house, there are things you need to understand before you can even set a price.

As I am on the east of the island I cannot point to any particular agency, but there are numerous you could contact if they would like to take it on and that way they will give you a ball park figure as to what the market price might be.

Similarly with lawyers, it would normally be cheaper to get one from the Paphos region as any trips to the LR will be in Paphos and you are likely to be charged for that trip from another district.

You could try to sell on line, but firstly do you know how to answer any pertinent questions relating to the land? And what would you do if you had a viewing?? And what would you do if someone just said I'll buy it as is, how would you handle that??


Sorry I cannot be much more help than this.


For all your property needs, we offer Trust, Integrity, Honesty.
FSB Properties Ltd
Registered and Licensed Real Estate Company Co. Reg. No. 795, Lic. No. 250/E
http://www.fsbproperties.com

Nigel Howarth
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Re: Estate agent contracts

Post by Nigel Howarth » 12 Sep 2018 21:19

Hi Robin

As Pan has said, selling land is not as straightforward as selling a house. All sorts of factors need to be taken into account when assessing its value such as its size, zoning, coverage, density, outlook and ground conditions. The land may be unsuitable for building or may require expensive earthworks, robust retaining walls, etc.

A couple things you may wish to consider:

As for those estate agents asking for a 6 month period of exclusivity, where 5% commission goes to them regardless of whether the interested buyer was found by them or not. Ask them if they enjoy sex and travel (if you get my drift.)

You could have the land valued by a RICS Chartered Valuation Surveyor - https://www.ricsfirms.com/search/CY/?se ... service=64 (they seem to be updating their website as there are far move than the three firms listed.) Or a member of the Property Valuers Association - http://www.propertyvaluers.org.cy/ - These should be able to give you a better assessment of what price the land will achieve at sale.

If you can't be in Cyprus, you could appoint a lawyer to act on your behalf under a Power of Attorney. Until the law changed a couple of months ago the Cyprus Bar Association dictated the minimum fees a lawyer could charge for out-of-court work. But now the law has changed you can shop around and get competitive quotes. If you choose to do this I suggest you use one of the law firms on the list provided by the British High Commission in Nicosia (one of whom used to answer legal questions in this forum.)

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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Robin
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Joined: 04 Sep 2018 19:02

Re: Estate agent contracts

Post by Robin » 13 Sep 2018 12:46

Hi and thank you both for your replies,

The land has been valued by an independent evaluator a few months back , and the recent estate agent has also valued it at a more optimistic price. I have all the information regarding coverage, density etc from the evaluators report.

Looking at estate agents websites online I must say I am not impressed by either their interfaces or amount of information available when advertising land for sale. From your experience, do most potential buyers look for land to buy online on agents' platforms or through previously built connections/acquaintances with certain agencies?

Pantheman, may I ask what you mean by a buyer wanting to buy it 'as it is'? Would a lawyer not help with drafting a contract of sale?
Thanks again



Pantheman
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Re: Estate agent contracts

Post by Pantheman » 13 Sep 2018 14:11

Robin wrote:
13 Sep 2018 12:46
Hi and thank you both for your replies,

The land has been valued by an independent evaluator a few months back , and the recent estate agent has also valued it at a more optimistic price. I have all the information regarding coverage, density etc from the evaluators report.

Looking at estate agents websites online I must say I am not impressed by either their interfaces or amount of information available when advertising land for sale. From your experience, do most potential buyers look for land to buy online on agents' platforms or through previously built connections/acquaintances with certain agencies?

Pantheman, may I ask what you mean by a buyer wanting to buy it 'as it is'? Would a lawyer not help with drafting a contract of sale?
Thanks again
Robin,

you expect too much from websites, they are just a window and you would enquire further by calling, you are not buying a pair of shoes but expensive real estate and one does not buy from the site, until he visits the site in question.

As to my last part, what I meant was, if you were not in Cyprus at the time that someone wanted it, how would you conduct the sale?? Send him to your lawyer?? In my experience, buyers like to be taken care of!

Hope that explains it.


For all your property needs, we offer Trust, Integrity, Honesty.
FSB Properties Ltd
Registered and Licensed Real Estate Company Co. Reg. No. 795, Lic. No. 250/E
http://www.fsbproperties.com

Robin
Posts: 4
Joined: 04 Sep 2018 19:02

Re: Estate agent contracts

Post by Robin » 13 Sep 2018 16:15

Hi Pantheman,
I understand what you are saying and I don't expect someone to buy off of a website. But I do expect to be lured into contacting an agent/seller by something that looks eye-catching, detailed and professional.
As you say I am expecting too much, but if they ask for 5% regardless of where a buyer comes from and a period of exclusivity for 6 months then...
Thanks again for your help. As you said previously I will try and approach other agencies on a no sale-no fee basis, and see where it goes. I am glad to have found such a forum available and grateful for your quick replies. I may come back with more questions!
Many thanks



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