Conventionally property finders take a percentage based fee for finding you a property. The fees usually range from 1.5 to 2% of the final purchase price. So for a property costing Euro 500.000 you would pay up to Euro 10.000.
Property finders operating this way justify their fee on the basis they will use their experience to get you a better deal. This is perfectly valid and there are some very good property finders working this way in Europe. There are few however in Mallorca and whether this approach is more effective than MPP’s free service is questionable.
In practice there is no real advantage to paying for search services in preference to the high level of dedicated service that Mallorca Property Partners offers. Whilst our income is derived from agreements with the estate agents that we work with, we are completely independent and work on your behalf, not the vendor’s.
Our reputation is founded on finding you the right property and obtaining it at the right price. Our work involves assessing the real value of properties you are interested in and supporting you with advice and information during the negotiations. These testimonials from past clients show how effective we have been in achieving this. You have to ask how adding an additional commission into the process can help you to achieve a lower price?
It is also worth noting that, just like MPP, fee-based finders will also have a set of estate agents they prefer to work with. A word of caution here too, some take an additional commission share from the agent behind the scenes which, in our book, is rather underhand. If you are considering using a fee-based service this is something to check explicitly up-front.
Alternatively, some property finders provide a “mostly free” service operating on a commission share as we do but requiring a “commitment fee” up-front. This fee is returned if you buy a property through their contacts.
On the surface this is fair enough. A lot of time and effort goes (or should go) into sourcing the best properties and arranging viewings. But in reality this commitment fee binds you contractually in a way that is unnecessary and cumbersome. Remember, if you find your property through some other route you will lose the commitment fee and this is usually around 1,000 Euros.
Beyond the commission-based property finder services and those that ask for a commitment fee there are other companies that have followed the free model that MPP established over 10 years ago. We’re bound to say non match our contact base, experience or level of dedication. Some that you will find on the internet are not even present in Mallorca. This is certainly something to check before you give them your details as they will simply pass your contact details on to an agent in the hope of a commission.
Our most fundamental advice is not to sign up to using a service until you have done some basic research. Are they operating in Mallorca, how long for, are they specialist property finders or running a range of property business of which this is just one, how do they obtain their income and will you be bound contractually in a way that could end up being a hindrance? In our own case we hope our website provides the answer to these questions and if want to know more please don’t hesitate to get in touch.
Related information
≈ More about MPP
≈ Frequently asked questions
≈ Testimonials from some of our clients
≈ All related blog articles
