How foreign realtors’ duties and real estate commission differ in various countries (Part 1)

What kind of services should one expect from a local realtor with foreign connections in comparison with using foreign realtors directly to help with a property sale? What is the real estate commission size in each case? Yes, to know all that is absolutely necessary to make a correct decision on the way of marketing and selling to foreign buyers to be successful.

 

As we have already mentioned at the beginning of this blog, realtors have different functions in various countries and the real estate commissions they charge also differ; thus you as a seller should familiarize yourself with the real estate selling-buying rules of your own country and also of any country where you are going to search for the foreign buyers with the help of the foreign realtors to have a sale and save money.

 

Never assume that all foreign realtors in any country work the same way as they work in your own country. It is beyond the recent task of the author to cover all countries of the world on the issue of the duties of the foreign realtors in there, but we will talk briefly about the U.S. and Russia as samples of what you have to pay attention to; below we picture both realtors in an imaginary case of an American home seller and a Russian buyer.

 

Realtors in the U.S. are licensed by the state and they are exclusive which means that as a seller you are obliged to sign an agreement stating that you are required for a said period of time to work through this realtor only and pay the real estate commission on sale which in most states usually is 5% or 6% of the selling price for residential properties. No charges from buyers.

 

The realtor is required to advertise your property on the local MLS (Multi Listing Service) which makes it immediately available to any other local realtor who is a member of this paid service mandatory to each licensee (they all are within some local area), and thus can bring a buyer to the closing table (both realtors – seller’s and buyer’s – will share the real estate commission you already contracted to pay, nothing more from you never mind how many realtors are working on your sale).

 

Also the American realtor should advertise your property in any other way that both of you agreed upon (here you should remember to include advertising in the foreign language if you are set to find the foreign buyers and that is why have chosen the local realtor who has the foreign connections and is capable of bringing you the foreign buyers in the first place).

 

(To be continued)

 

 

Copyright © 2017 by Olga Kellen
All Rights Reserved

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s