BUYING AND SELLING PROPERTY IN JAMAICA – OUTLAY FEES AND AGENTS

Outlay fees are defined as the total cost or expenditure required or incurred in acquiring an asset, achieving an objective, or executing a decision.   Outlays are those items of expense incurred by the professionals acting on your behalf.  Generally, if the property involves a dwelling house, there is a probably a mortgage payable to a lending Institution. So, there is usually a fee for obtaining the Title Deeds from the bank, building society or other lending institution.  The Lending Institution will also charge for releasing the Mortgage from the title of the property when the sale is complete.  Costs in obtaining an up to date map and Folio are also part of outlay fees.

Professional fees would include the fee payable to the Realtor and the Solicitor for the services provided.

It can be argued that if the seller is in financial difficulties, he or she may be at a disadvantage when trying to sell a property but unable to access initial outlay fees required.  Normally the seller is required to pay the Realtor’s fees since there is a contract between seller and agent. There is the commission you’ll owe in order to sell your home. When you’re talking about a home worth millions, that’s real money!  Does the buyer have to pay a higher deposit because the seller is having problems finding the costs associated with the sale of the property?  If so, that could be one reason why properties stay on the market longer than others.

Realtors vs. You! Pros and Cons

In these trying times, can outlay fees be avoided?  In a relatively small country like Jamaica, it’s a fair question to ask: “do I really need a realtor to sell my home with all of the services available to me?” Technically no, you don’t absolutely have to involve a realtor, however, the owner must take into consideration different aspects of ‘going it alone’.

By selling it yourself it’s entirely up to you to get this home sold and do all the considerable ‘leg work’.  Beyond listing you in the databases and a ‘For Sale’ sign in your front garden; you alone are responsible for finding prospective buyers, showing them the house and handling the entire house sale process.  No mean feat.  You do get to control when the house is available to show and you don’t have to be constantly vacating your home when the realtors come knocking but, the Realtor, on the other hand, will more effectively and more efficiently market your property.

To reach the same audience at the agent’s disposal, you would need to invest more than the fees paid to a Realtor as he or she knows where best to market which type of property, and continuously extends his best efforts to do just that and track results. Your property will be placed in the right marketing vehicles plus the agent has a network with other realtors and brokers, providing essential feedback to help shape the direction of the product being offered for sale, your property.

A Realtor will work with you for compliance on all required disclosures and forms whereas homeowner might inadvertently omit something that could, in the future, become the source of a legal liability down the road thereby incurring fees not previously taken into account.

And, most importantly, the price must be right, no one will buy a property that is overpriced. An agent can provide that very important advice to help you achieve the best price for your property.

Much to think about before doing away with those professionals involved in selling real estate.

 

 

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