30 Oct 2007
A good estate agent will provide useful local information, help you find the right property and guide you through the buying process, but you need to choose the company carefully.
Looking for a property abroad? Well, the chances are that you will use the services of an estate agent. There are a bewildering number of firms out there, specialising in particular countries, regions or areas, or offering property in a range of different markets, even worldwide. Wherever the company is based it is vital that they have a good knowledge of the markets they operate in. The company should also be qualified to provide all the services you require. That doesn't mean that you need an agent with branches all over the country, but there are minimum standards to which they should adhere.
“Initially, there are a couple of things you need to consider,” says Dominic Whiting, editor of the Buying in Turkey and Buying in Bulgaria guides (www.buyinginguides.info). “Firstly, there are professional bodies in the UK to which agents can and should belong. To become members, they will have had to prove their professionalism and competency, including financial viability, past track record, reliability and ability to handle a customer transaction from initial enquiry to signing on the dotted line.”
Trade bodies include the Association of International Property Professionals (AIPP), the National Association of Estate Agents and the Federation of Overseas Property Developers, Agents and Consultants (FOPDAC).
You should also check what additional services the agent can provide. Do they offer after-sales services, advice on removals and help finding local furniture suppliers or where to buy white goods and all the other things that you will need? How long does their after-sales service last? For example, have they forgotten you the instant you have signed the contract or will they remember you in 12 months time?
“Seeking recommendations from other people who have bought before you is advisable,” advises Sarah Woods of the Retirement Property guide. “Many companies will provide testimonials from previous clients, or, even better, their contact details so you can talk to them independently.”
A wide variety of web forums exist, including www.expats.org.uk, www.britishexpat.com and www.expatnetwork.co.uk. These often provide 'warts and all' advice from other British buyers abroad, as well as good practical tips, contacts and links.
Many estate agents and developers offer viewing trips to their potential customers. These are usually 3-5 days long with the property company typically organising airport transfers, an orientation tour and a series of viewings. Dinner and entertainment may also be laid-on in the evenings.
Viewing trips are a very cost effective way of looking at property, with the cost of your flight and accommodation subsidised by the company. If you decide to purchase a property, many estate agents will also deduct the cost of the trip from the price.
“Remember that going on a viewing trip puts you under no obligation to buy,” says Dominic Whiting. “It is not unheard of for companies to apply high-pressure sales techniques during viewing trip, but don't allow yourself to be pressurised in any way.”
It is difficult to generalise about where the estate agent's commission comes from or the rates they charge, as these vary from country to country. In the main, the agent receives the commission from the developer when selling a new property. In fact, it is usually built into the overall purchase price. If the house or apartment is a resale, it is worth checking what the commission rate is - and who is paying it (purchaser or vendor).
If you are buying the property from a UK-based agent it may be in partnership with one or more other agents, who will split the commission. It is useful to understand who is in control of your purchase process and to make sure that you are not overpaying a chain of agents. Different countries have very different ways of charging commission, so it is important to clarify what your cost will be in advance. Some unscrupulous agents may hide inflated commission rates within the asking price of the property. To avoid being caught by this it is important to compare properties being offered for sale in the same area by different companies. With off-plan properties compare the price per square metre, with other similar developments nearby.
To get free unlimited access to all three guides (the Buying in Turkey, Buying in Bulgaria and Retirement Property guides) join the Buying in Guides 'Online Library' by completing a short online registration form: http://www.buyinginguides.info/register/
The print guides can also be purchased at a specially discounted price from the Buying in Guides website www.buyinginguides.info or from Amazon.co.uk or good bookshops.
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For further information, please contact: Amanda Billige Tel: 01306 877800 Email: a.billige@abpropertymarketing.co.uk