FSBO – or For Sale by Owner
For Sale by Owner (FSBO) is a relatively new phenomenon in the Spanish Housing Market. There are several reasons why it is becoming more popular, not least being the on-going property crisis. Spain has a total glut of property in most regions, for most types of properties and in most price sectors. Desperate vendors have had to be more innovative in getting their properties in front of the decreasing number of buyers. They have started to do it themselves!
Other reasons often cited include the excessive commissions charged by agents for apparently little work on their part. In the UK a commission above 3% would be rare, in Spain a commission BELOW 3% would be even rarer! So, on a 200,000 euro property an agent would often charged 10, 12, 14,000 euros …. or even more! Another very logical reason is that the agent has zero legal input. Everything should be dealt with by the two parties’ solicitors and then signed off in front of a notary public (el notario). Nothing else is recognised under Spanish law. Nothing!
So, property owners are now more and more marketing their own properties through their own efforts. This might be having a single-property website, using social media sites or adding their property to a purpose-built website or portal for FSBO proeprties. Here people can browse at their leisure safe in the knowledge that the properties are probably being marketed at 5, 10, 15 or even more per cent below an agent’s price.
One FSBO site is Buy direct From Owners Owners can add their properties for a small once only fee whilst buyers can buy direct and save agents’ commission.
An excellent example of a FSBO property is Casa Kernow which had originally been marketed at 1,4 million euros. In face, one local agent was marketing it at 1,5 million and had not informed the vendor. Presumably he was going to pocket this additional 100,000 euros! This magnificent property is now available direct from the British owners at 850,000 euros! (Photo above)
If you require a purpose-built website to sell your property professionally, I recommend the team behind Hot Costa who have many, many years experience in property sites. They can design, build and maintain anything from a single page placeholder to a portal of many thousand pages complete with fully-searchable databases.
Whether you are buying or selling, I wish you every success!