Commission for estate agents
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 Posted: Wed Jun 01, 2005 1:05 pm |
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| Svetlana |
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| Joined: 06 Nov 2004 |
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| Location: Paphos |
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5% (+VAT) is the going rate; this seems high compared with the UK but the Market is very different. Most UK EA make their money from on- selling 'products' : mortgages, life insurance etc. EA in Cyprus do not do this. Also, it is a matter of volume, a UK EA will sell many times more properties each week that a Cypriot EA.
Also, achieving a low commission rate is not always a smart idea: the company and sales people are rewarded on how much commission they sell a property for. So, let us say a buyer comes in and the EA can show them your property (on which he will earn 2%) or five others on which he will earn 5%. The buyer will never even hear about your property. It will never get sold.
Also, be warned, if you use an unlicensed EA you cannot set their commission against any Capital Gains Tax liability - alos of course they will not have professional indemnity insurance etc.
Lana |
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| Posted: Wed Jun 01, 2005 1:10 pm |
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| Marina2005 |
| instructor |
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| Joined: 22 Feb 2005 |
| Posts: 669 |
| Location: Cyprus |
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| Svetlana wrote: |
5% (+VAT) is the going rate; this seems high compared with the UK but the Market is very different. Most UK EA make their money from on- selling 'products' : mortgages, life insurance etc. EA in Cyprus do not do this. Also, it is a matter of volume, a UK EA will sell many times more properties each week that a Cypriot EA.
Also, achieving a low commission rate is not always a smart idea: the company and sales people are rewarded on how much commission they sell a property for. So, let us say a buyer comes in and the EA can show them your property (on which he will earn 2%) or five others on which he will earn 5%. The buyer will never even hear about your property. It will never get sold.
Also, be warned, if you use an unlicensed EA you cannot set their commission against any Capital Gains Tax liability - alos of course they will not have professional indemnity insurance etc.
Lana |
Hi Lana,
First of all thanks a million for your reply.
Second what do you mean by 5% (vat)?? They get another 15%vat on top of the 5%??  |
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| Posted: Wed Jun 01, 2005 1:27 pm |
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| erolz |
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| Joined: 02 Aug 2004 |
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| Location: Girne / Kyrenia |
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| Svetlana wrote: |
| 5% (+VAT) is the going rate; |
5% is also the 'going rate' in the north as well. You can get lower by agreeing 'exclusivity' with the estate agent (will not let any other agents market the property) usually around 3.5%. You can occasionaly get lower than 5% without having to grant exclusivity but generaly only on properties of exceptionally high value. Not sure if this helps as the it's based on the situation in the north but thought I would mention it. |
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| Posted: Wed Jun 01, 2005 1:37 pm |
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| Marina2005 |
| instructor |
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| Joined: 22 Feb 2005 |
| Posts: 669 |
| Location: Cyprus |
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| erolz wrote: |
| Svetlana wrote: |
| 5% (+VAT) is the going rate; |
5% is also the 'going rate' in the north as well. You can get lower by agreeing 'exclusivity' with the estate agent (will not let any other agents market the property) usually around 3.5%. You can occasionaly get lower than 5% without having to grant exclusivity but generaly only on properties of exceptionally high value. Not sure if this helps as the it's based on the situation in the north but thought I would mention it. |
Hi Erolz,
Thanks alot, at least now I can go with a bit more knowledge then I had yesterday (if you know what I mean!!)  |
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| oops | |
| Posted: Wed Jun 01, 2005 2:01 pm |
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| demetriou_74 |
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| Joined: 16 May 2005 |
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| Location: London, Greek Cypriot |
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good point i was supposed 2 write 1.9%. i was just testing your ability to check small print. that way when you read the contracts...... you should be thanking me no sending smileys with guns  especially when my smiley has a bigger gun |
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| Re: oops | |
| Posted: Wed Jun 01, 2005 2:06 pm |
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| Marina2005 |
| instructor |
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| Joined: 22 Feb 2005 |
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| Location: Cyprus |
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| demetriou_74 wrote: |
| good point i was supposed 2 write 1.9%. i was just testing your ability to check small print. that way when you read the contracts...... you should be thanking me no sending smileys with guns especially when my smiley has a bigger gun |
Yer but my smiley had two guns! 
As for the small print, do I win a prize for noticing??  |
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| ye your prize is a .......... | |
| Posted: Wed Jun 01, 2005 2:15 pm |
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| demetriou_74 |
| lecturer |
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| Joined: 16 May 2005 |
| Posts: 1615 |
| Location: London, Greek Cypriot |
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 smiley on LSD
 now i have a army so ur lil 2 gun looser can go away |
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| Posted: Wed Jun 01, 2005 2:16 pm |
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| demetriou_74 |
| lecturer |
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| Joined: 16 May 2005 |
| Posts: 1615 |
| Location: London, Greek Cypriot |
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and no u dnt get a real prize just a dead smiley>>>  hes just borrowing them wing to get rejected from heaven. hes atually goin 2 hell b'cause he tried to shoot me. well done for noticing |
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| Posted: Wed Jun 01, 2005 2:26 pm |
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| Marina2005 |
| instructor |
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| Joined: 22 Feb 2005 |
| Posts: 669 |
| Location: Cyprus |
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| demetriou_74 wrote: |
| and no u dnt get a real prize just a dead smiley>>> hes just borrowing them wing to get rejected from heaven. hes atually goin 2 hell b'cause he tried to shoot me. well done for noticing |
How could you be so cruel   |
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| Posted: Wed Jun 01, 2005 2:35 pm |
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| demetriou_74 |
| lecturer |
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| Joined: 16 May 2005 |
| Posts: 1615 |
| Location: London, Greek Cypriot |
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ok you win £1,000,000 FOR BEING THE MILLIONTH PERSON TO DO SOMETHING. ok your real prize is  7 cool dudes. i never refreshed this page so i neva new people were replyin. i was just pressin back. how stupid of me |
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