۩ Guide: Estate Agents in Turkey (part 2)
Following our article on web searches for agents, here we assume that you have identified which area you would like to buy in, and have made a shortlist of agents who you feel have fulfilled the criteria which were discussed in the previous article. In this article, we aren't covering the agent subsidised inspection trips as they need an analysis all of their own!
The first decision is the time of year you visit Turkey to approach agents in your quest to find a property. There are benefits and drawbacks to different seasons and the opportunity to combine a house-hunting trip with a holiday can affect the process significantly.
If you choose to go in the summer season (May - September), then care must be taken to deal with staff who have not been recruited just to deal with the summer rush. Of course, many agents will employ staff with good local knowledge but make sure this is the case. Also, be aware that agents are very busy during the peak holiday months of July and August and so can appear to be a little rushed. You can find yourself being escorted from one property to the next with little opportunity to ask questions and take things in. You need to be in control here and you should let the agent know if you feel uncomfortable at the speed of events. On the other hand, bear in mind that good agents have to tolerate a lot of time-wasters during summer and while this does not excuse an overly fast pace, a good relationship with the agent is a mutual affair. A key issue in summer is the 'silly season' mentality. This takes the form of inflated prices where some vendors (and agents) place unrealistic asking prices on properties in the hope of catching a holidaymaker unawares.
The low season months are, in our opinion, a better proposition. The 'hard-core' genuine agents will still be in the resorts and will have more time to dedicate to clients. You are, therefore, less likely to be rushed and will have more time to see your selection of properties. April, and particularly, late September offer a chance of lovely weather for a viewing trip. Two things to check though, whichever time of year you choose. The first is flight availability and cost. This is becoming less of a problem in the winter months with more services to resorts beginning all the time and we'll run a story on this shortly. Secondly, many of the main overseas property exhibitions take place in the low season so make sure you can attend one or more before you go (again a piece on these is on the way).
Prior to travelling, if you have selected particular properties from an agent's website, make sure that these properties are for sale on your departure. Unfortunately, as we mentioned in our previous agent article, many properties are on offer from multiple agencies (far more than in the UK) and are sold by one agent without any notification to others. If your chosen properties are unavailable, insist on an up-to-date availability list but be prepared not to see everything you would like to.
Here are some tips to help you with agents when you are there:- Check that your web search has yielded a genuine agent. Ask around in the area for (independent) ex-pats who might know.
- Let the agent know that you are serious and have done your research. This will start the relationship on a firm footing.
- Come clean. Let the agent know your specific requirements. After this, if they try to insist on viewings of inappropriate property (or property the agent seems to be unusually keen to sell), walk away.
- Agents (as with people in general) in Turkey are extremely good hosts and will offer you refreshments and sometimes food. This is quite normal and should not be taken in the wrong spirit.
- Ask questions. Does the property/land have good title? Are there any restrictions on foreigners buying in the area? (see article on law)
- Don't succumb to pressure tactics and flannel.
- Do not sign anything without understanding exactly what it is.
We have come across agents who you to sign a contract in which you agree to pay their 3% commission if you buy the property before you even have a viewing as they are (unusually) the sole agent. This is, of course, standard in most countries for vendors, but may come as a shock for the first time buyer in Turkey. In fact, we think this is a good sign. While the combined 6% fee the agent will receive from the buyer and seller is steep by European standards, this is a sign of an agent who is trying to stamp out the practice of unscrupulous 'agents' trying to sell the property from under the genuine agent's nose. The legality of such a contract is questionable but the sentiment is, we feel, correct. Here is an example of how a sale process in Turkey might happen:
A vendor is selling a property and approaches agent B to advertise the property (as sole agent). Agent B does this but 'agent' C (who we will refer to as the 'fake' and may be an agent or not ) sees the property on the website and duplicates the details on his/her site. Agent B is set for a commission on a sale until the 'fake' agent approaches the vendor with a client and offers to take only 1% for a sale. The vendor agrees and the buyer pays the 'fake' agent the full 3%, meaning the pseudo-agent receives 4% commission by 'stealing' a sale. The vendor informs the genuine agent B that they are withdrawing the property from sale leaving agent B with marketing costs and time spent showing the property for no return.
There are variations on this theme and while we understand that everyone needs to make a living, if you are a buyer, you need to be aware of the mechanisms which may be at play behind the scenes. Admittedly, the agent who asks you to sign an agreement promising to pay a commission regardless, is attempting to safeguard their interests, but at the same time is improving the transparency of the process. We think that this is key in any developing market as experiences buyers have had in other countries in the past confirms.
Again, we must state that this is not an exhaustive guide, and may state the obvious to seasoned investors but we hope it will provide a starting point. Please check back for additions to this piece or subscribe so that you don't miss future articles.
Tags: real estate agents Turkey, tips on buying property Turkey
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