Real estate offices: how do they work?

[Trennet]

How do real estate offices work (the ones with all the listings in the windows)? How does one traditionally interact with them? Walk in (or set an appointment) and ask what they have in certain specifications?

I do not want to hire a real estate agent to find properties for me -- I want to do it myself. I understand that these offices are the property sellers' agents. But I want to make sure that I don't get myself into a situation where it's assumed that I will be paying them as my (the buyer) agent. (Though I assume that as long as I don't sign anything, no one has any claim to acting as my agent and being due a fee?)

I thought I'd post and see if anyone here could help clarify how things work with these real estate offices.


Many thanks.




Side note:

I don't want my own real estate agent (the buyer's agent) because numerous friends have told me that I can easily find the properties on my own. They say that a buyer's agent is hired primarily for convenience and that such agents use the exact same methods to find properties that I will: searching websites, walking around the neighborhood, and checking with local real estate offices. (Sellers' agents, on the other hand, are of course an integral and unavoidable part of the process [unless happen to find a rare property that is being sold directly by the owner].)

 

[Davidglen77]

Here the buyer pays the majority of the commission when you buy a property. Of course there is some room for negotiation but be prepared to pay at least 3-4% if you use a real estate agency. Most are not honest if you go in unknown, so ask good friends for references.

 

[Trennet]

Here the buyer pays the majority of the commission when you buy a property. Of course there is some room for negotiation but be prepared to pay at least 3-4% if you use a real estate agency. Most are not honest if you go in unknown, so ask good friends for references.

I know you are trying to be helpful, and thanks, but unfortunately none of that info is applicable to the topic.

I'm specifically asking about the ordinary real estate offices that have listings in the window (sellers' agents). Rather than fumbling my way through it, I thought I'd ask some quick questions about how locals traditionally interact with them.

 

[Sleuth]

Walk in if you see something you like in the window. An agent will sit down and show you what else they have that may be similar.

The big problem is there is no MLS here, so each office has different properties - usually in the neighborhood they are located in. You'll need to go into multiple offices and repeat this process over and over to find the one you want.

Also check out the weekend paper for listings as well as http://www.zonaprop.com.ar. Those may save some time.

 

[sketchyblueeyes]

If you're looking to sidestep a real estate office so as not to pay commission, try soloduenos.com.ar Also, tell your friends, family, neighbors, etc down here that you are looking for a place with certain characteristics - maybe someone will know someone looking to sell a similar thing.

suerte

 

[steveinbsas]

I know you are trying to be helpful, and thanks, but unfortunately none of that info is applicable to the topic.

I'm specifically asking about the ordinary real estate offices that have listings in the window (sellers' agents). Rather than fumbling my way through it, I thought I'd ask some quick questions about how locals traditionally interact with them.

David's answer was most applicable to the topic. There's just a little confusion that stems from referring to the individuals who work in the real estate offices as agents.

In Argentina, the buyer pays the commission (3% or 4%) to the real estate office/agent (the ones that have the listings in the window). Some of these agents or brokers (the individuals in the real estate offices) do not charge the seller any commission but others charge 1 or 2%. Independent buyer's agents usually charge an additional 2% but I've only know one expat who actually used one.

You can look at as many properties as you want. You will not have to pay anything until you sign an offer to buy a property. At the boleto you will pay about 30% of the agreed price and the agent will take his commission then. At the escritura (finalizing the sale) you will pay the escribano 1 or 2% and half the 2.5 % "stamp" tax.

The buyer chooses the escribano and he is the one in which you really place your trust. My escribano speaks perfect English and I highly recommend him. He will be unavailable for the next two weeks as he is going to the US (where he also works as an international lawyer) to take the oath to become a US citizen.

If you do buy a property directly from an owner you should know you have the right to select the escribano. The escribano will certify that the property has no liens and that all of the taxes are paid, Never allow the seller or the real estate agent to choose the escribano!

 

[Roxana]

As you detail what are you going to do for yourself in the process to buy your property, it is not very clear to me if you include the certificado de dominio of the property you are going to buy.

 

[nikad]

Ok, to clarify, those RE that you think are seller´s agents, aren´t really. They will show you their listings, etc, but if you want to buy any of those properties thay will charge you a commission as a buyer. They also charge commission to the seller, but it is much less. Everytime you buy a property, unless it is owner direct, whether the listing was on the display or online, the RE will charge you a commission if you buy or rent.

 

[Roxana]

An old school option is talk to the doormen of the neighbourhood. They might put you in touch with the seller, for a small fee in exchange for the service provided.

 

[rrptownley]

The information above is correct, but not complete.

Do not think of the Real Estate industry here as you would back home. The industry is completely unregulated allowing for complete amateurs to set up a stall under their name and start marketing properties, some of which may be fish hooks (unavailable and designed to draw you in to view other, less desirable properties (even down to having stolen the pictures from other agents website and making up the details). There are great agents here though, you just need to be savvy.

Buenos Aires´ agents charge some of the world´s highest commission. Due to their being no real competitiveness in the market.
Nikad is right; The industry norm is that commissions are split between buyer and seller and range from 3-4% for the buyer plus tax on same, sellers pay 2-3% plus tax on same.

Steve´s description of the buying process is accurate, keep in mind every payment process here is done in cash US$.

There are hundreds of agents, each with their own market share. Mostly localised and with no clear, trustworthy company to bat with. If you are looking for investment property most of it is in the hands of international agents or off-plan from developers. If you are looking for a property to renovate you should be able to find a shell somewhere worthy of sprucing up. If you would like to just find a home for yourself, then paying up commission and getting a local agent in the area that pleases you is a sure way.



If you start to deal with the Agents here they will insist on charging a buyers commission. Dealing direct with Developers is the same story (they will charge you commission on top of their own profits).

If you browse the listings sites mentioned above, any property that is remotely desirable will usually be found to be overpriced. It is directly listed from the owner and what they are trying to do is skip the commissions (understandably) and then charge that excess onto the asking price.


And as Roxana said, how are you proposing to navigate this by yourself, are you confident in what you know about the process of buying property here? From what there is to be assumed; as a foreign buyer looking for a residence possibly in a tourist barrio and hoping to use it as an investment, you have to be careful when setting out to do this on your own. You must have read the many threads and articles warning against doing business and dealing with money in Argentina, if you pay heed it would be recommended to pay up commission and have someone earn their bucks for you (preferably a investment agent rather than property agent- someone who is used to working with foreigners and dealing with bringing Dollars in cash into the country and dealing with the contractual squabbles that faithfully arise at the 11h hour here.

Oh dear, I am starting to get long-winded and personal. Like a drunk Uncle at a christening.

To sum up: If you know the city and how business in Argentina works, how to get your money into the country in cash and how to negotiate with proud home owners, use the recommendations from people here (many who have been through same process as you) and are willing to walk the streets inquiring with porteros or construction workers, whilst trawling several hours a day on the listing sites and in the papers you should find the property that you are looking for and avoid commission, just either expect yourself to be lucky or waiting a while.

Your original post just came across like your are refusing flat to avoid paying for professional help, I'm sorry, I don't know under what conditions you are buying or what experience you have, but it struck me as you might be wading in under the same impressions of buying property in your home country which would be an error.

Good luck, it is a healthy market and there are some beautiful properties out there.