How foreign realtors’ duties and real estate commission differ in various countries (Part 2)

To resume talking about how realtors work and receive their real estate commission in the U.S.: Usually American realtors are good (if you properly choose one with a good track record of sales of course) and stay with you all the way till closing as they are very well protected by the agreement you signed and their real estate commission is 100% guaranteed at closing if the property sells.

You are obliged to pay the real estate commission even if you find a buyer on your own, but during the time the agreement is valid and plus some reasonable time over it. Supposedly, you have chosen the local realtor who knows the language of the potential foreign buyers, so you are covered with interpreting as well.

Real estate agents in Russia on the other hand are not required to be licensed and are not exclusive which means it is theoretically possible to work with many of them at the same time hoping that one of them would bring you a buyer sooner or later. As they are not guaranteed a thing (they know that you can sell without them or you can drop them any moment, even if they sent you a buyer, and “forget” to pay their commission), they do not work hard on your sale.

At the same time you might get lucky if one of them has a suitable buyer looking just for what you offer for sale. It is a number’s game – the more Russian real estate agents you contact, the higher are your chances to get a buyer from someone.

Of course you have to sound very convincing with your future real estate commission payment and sign an agreement with the terms and conditions of the future sale, and nevertheless, everybody understands that if you do not act according to the agreement it is hardly possible for them to go to court in your country.

Usually the Russian real estate companies prefer to work through their representatives in the seller’s country which is also good for you, the seller, as such a representative is bilingual of course and will serve the foreign buyer’s needs as an interpreter – one problem less for you. This country’s representatives of the Russian real estate companies should be geographically located not far from your property, otherwise they would not bother.

The real estate commission issue is somewhat vague in Russia, no rules, no regulations, every real estate professional says what they want, but usually they do know your country’s local rules perfectly well if they are seriously working with your country’s properties. In international transactions the Russian realtors usually do not charge the buyers who they send abroad to buy from you as the competition between the realtors themselves over there to win such a buyer is rather tough.

(To be continued)

Copyright © 2017 by Olga Kellen
All Rights Reserved

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