Your property questions answered
What’s the procedure for changing agents?
Q My apartment has been on the market for nine months with zero interest and I am now going to change estate agent. As I do not live in Dublin (where the apartment is) it’s all a bit long distance. What is the procedure? Can I have two agents at the same time? Do I have to pay the first agent?
AChanging agent is not difficult. Simply write to your existing agent informing them of your wishes. They will charge you for any outlay – advertising costs, brochure print costs, etc – they have incurred on your behalf in the past nine months. Fees are a different matter, as a fee should only be charged if the agent has introduced you to a ready, willing and able buyer. In rural areas it is not unusual for properties to be listed with more than one agent but it is very unusual in cities, particularly in Dublin and almost unheard of in the apartment market. Two agents mean splitting fees.
But before you do anything, you really need to research the market yourself and review the entire situation with your existing agent. The key question is: is your apartment priced correctly? It’s not if the price you’re asking today is the same as nine months ago as prices have dropped. Have any apartments sold in your development recently and for how much? How are other apartments in your locality priced and are there many for sale? You must adjust your price accordingly – otherwise no matter who the agent is, it won’t sell. Find out why the agent thinks there has been no interest? He or she will have definite opinions. Do you need to take another look at the interior of the apartment, update it a bit (repaint, etc) and take new photos? Was this an investment property that was rented out? If so, you need to give it a makeover to make it attractive to first time buyers who want an apartment as a home not an investment. You need to be more active in the sales process, keeping in weekly contact with the agent to monitor progress.
What are the extra costs in buying abroad?
Q As a family of avid skiers, we are considering buying a small apartment in a resort in Austria for family use and rental to other skiers. On a recent visit we noticed that property prices seem affordable but what are the additional costs?
AYou should factor in around 10 per cent extra on top of the sales price. This is made up of commission for the agent (usually 3 per cent); notary fees of 2.5 per cent plus VAT; a land registration fee of 1 per cent of the purchase price; a 3.5 per cent transfer tax plus, depending on how you fund the purchase, a fee of 1.2 per cent of the loan amount, to register the mortgage. No matter how you are funding the purchase, don't base your figures on rental income. It's likely to be rented far less than you imagine (or the sales agent says) and factor in the costs of rental (servicing the apartment, advertising, tax). Visit the area several times before buying and do as much research on the ground as you can, as regards prices, snow, rental competition, etc.
Your questions
Send your queries to Property questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or email propertyquestions@irish-times.ie. This column is a readers’ service and is not intended to replace professional advice.
