September 1, 2006
Viva Estates set the standard by dropping real estate commisions on the Costa del Sol
Latest news from the Costa del Sol is that Viva Estates has apparently dropped its commission rate to 3% (2% for the sale and 1% for the conveyancing). It was only a matter of time before one of the larger players started the price war. I am sure this herlads the beginning of other large agencies lowering their fees.
As a suprise step Viva (the majority stakeholder in the Inter Agency Network) also announced that it would be stepping back from IA Network MLS database system. This will be a rude shock for many within the sector and especially other members to the IA Network. Members to the IA network paid a membership fee of 18,000€ plus a monthly maintenance and commision on the sale of a property. Commisions were around 7.5% and this allowed many small agencies to specialise and list properties on behalf of the larger agencies that brought the clients.
Closure of the IA network will mean smaller agencies that are not specialised (niche scetors or rentals) or who do not have a strong enough client base will be forced to close through lack of business during the Coast's period of correction.
Category: The Costa del Sol Property Market.