How real estate agencies work in Spain: What buyers need to know.

The real estate market in Spain has its own particularities, and the way real estate agencies operate differs from other countries. For a foreign buyer, understanding these nuances can be key to a successful purchase. In this article, we will examine how real estate agencies work in Spain, what services they provide, what to look out for, and how to choose a reliable partner.

The Role of Real Estate Agencies in Spain

In Spain, real estate agencies typically work on behalf of the seller rather than the buyer. This means their main objective is to sell properties from their database and receive a commission from the seller. Buyers usually have to search for properties on their own and interact with different agents.

How Real Estate Agencies Work

1. Commission is Paid by the Seller

In most cases, the agency commission is paid by the seller and ranges from 3% to 5% of the property price. For the buyer, agency services are usually free if they choose a property from the agency’s listings.

2. Limited Property Listings

Agencies often only offer properties that are in their own database. To access a wider range of options, buyers may need to work with multiple agencies.

3. Priority Given to the Seller’s Interests

Since agencies earn their commission from the seller, their priority is to sell the property as quickly as possible rather than find the best option for the buyer.

What Do Agencies Offer to Buyers?

1. Property Search

Agencies select properties from their database that match the buyer’s criteria.
They organize property viewings.

2. Transaction Assistance

They help at all stages of the purchase, from negotiations with the seller to signing the contract at the notary’s office.
They may provide basic advice on documentation, but legal checks are usually performed by an independent lawyer.

3. Translation Assistance

Many agencies work with foreign clients and provide translation services or have staff who speak English, German, Russian, or other languages.

What to Consider When Working with Agencies?

1. Check Reputation

Read online reviews about the agency.
Check how long the agency has been operating and what kind of properties they offer.

2. Compare Prices

The price of the same property may vary between different agencies due to commission differences or agreements with sellers.

3. Ensure Transparency

Find out which services the agency provides for free and which may have additional costs.
Request detailed information about the property: debts, legal status, and ownership history.

Pros and Cons of Working with Agencies

Pros:

Saves time in property searching.
Access to properties not available through private listings.
Help in organizing viewings and negotiations.
Translation services and basic consulting.

Cons:

Limited selection of properties (only those listed by the agency).
Potential bias towards the seller’s interests.
Some agencies may list properties at inflated prices.

How to Choose a Reliable Agency?

1. Reviews and Recommendations

Ask for recommendations from acquaintances or read online reviews. Reliable agencies often have many positive reviews and experience working with foreign clients.

2. Specialization

Ensure the agency has experience in the region where you want to buy or with a specific type of property (e.g., luxury properties or new builds).

3. Transparency and Communication

A good agency provides clear and transparent answers, offers complete information about the buying process, and supports the client throughout every step.

Alternative: Independent Consultants

If you want someone to work exclusively in your best interest, you can hire an independent consultant (buyer’s agent). These professionals:

Search for properties across the entire market, not just within one agency’s listings.
Negotiate with sellers.
Oversee the entire transaction process.

Cost of services: 1–3% of the property price or a fixed fee.

Useful Tips

Work with multiple agencies: To get a broader selection of properties, don’t limit yourself to just one agency.
Hire an independent lawyer: Agencies rarely conduct thorough legal checks on properties, so it’s best to hire a lawyer to review the documents.
Be prepared to negotiate: Some agencies may offer properties at prices above market value. Research average property prices in your area before negotiating.

Conclusion

Real estate agencies in Spain primarily work in favor of sellers, but with the right approach, buyers can still benefit from the process. It is important to choose reputable agencies, verify their property listings, and seek independent professionals to protect your interests.