Home Expat Blogs The Best Explanation for Paying Real Estate Commissions in Mexico

The Best Explanation for Paying Real Estate Commissions in Mexico

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Young family speaking to a real estate agent
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Harriet Murray Blogs for Expats In Mexico on Real Estate
Harriet Murray

Realtors have a number of responses when it comes to explaining why expats should be paying  real estate commissions in Mexico. The following are various responses to how an agent may handle objections from you. Rate them from most convincing to least, or let me know which of them you think is the best explanation in our Comments section.

Lower the commission explanations

1. “Did you ask the agent before me to cut his/her commission? Did they offer? How long did it take to get to this subject in your discussion? If he/she will give a commission away that quickly, how quickly will they give away your money to a buyer for the price of your home? Do you want that same person negotiating your money when he/she gave it away so quickly? I can’t give my commission away, but I do not want to give your house away either.”

2. “Why would I give my commission away? My job is to get the house sold and come to settlement with you. I’ve done my job. This is just like anybody else doing his/her job. If I happen to have a buyer, what you are saying is that you would rather have me show another house versus showing yours and getting it sold. Is that this what you are telling me?”

3. “Do you have mutual funds? How do you purchase them? Was your purchase based on commission or yield to you? As in mutual funds, look at the yield. You get what you pay for.”

4. “I can’t take less. If you put US$6 on the table, US$3 goes to the other company, US$1 goes to our broker and US$1 goes to marketing. Do you want to take the last US$1 from me?”

Talking to other agents or a friend in the business explanations

1. “I can appreciate your request. Let me ask you a question, though. If I could show you that I would be the best person for you to hire to market your home, would you hire me this evening? What is it that you are looking for in other agents that you think I might not have?”

2. “When we get into this, your life, personal finances, your bottom line and all of your problems and blemishes are going to be laid out on the table. Do you want to share this with your friend? When you are irritated or mad, would you rather be yelling at your friend or at me?”

For sale by owner explanation

“I understand that many people like you like to do For Sale by Owner, but the biggest reason that people sell FSBO is to try to save the commission. Most buyers are trying to save the commission. If you can tell me how you can save two commissions on one house, then I should get out of the business. The challenge is not to write up the sale. The challenge is to find a buyer who will pay your price. Chances are it will not cost you to use my services. Instead, you will actually net more money than if you do it yourself. Wouldn’t you rather have me handle the sale for you?

This article is based upon legal opinions, current practices and my personal experiences. I recommend that each potential buyer or seller of real estate conduct his own due diligence and review.

2 COMMENTS

  1. I have been selling Real Estate in Mexico for almost 11 years and have had very very few sellers complain about the commission that is charged on the sale of their homes. They see the time taken to photograph their properties, put together the website ads (which costs our company money to have on the web). Brochures that are published and distributed showing their properties. The time we take to respond to every inquiry we receive by phone or e-mail, having open houses and finally showing their property to prospective buyers. We also make sure all the paperwork is correct in taxes and all bills are paid, trusts payments are up to date and all paperwork the buyer needs is complete for the notary. If you have a competent Real Estate agent they definitely earn their commission!

  2. I think the first one is strongest and hardest to argue against. I don’t know about in Mexico, but here in the U.S., realtors are also having to think about selling themselves and their commission rates against flat rate real estate agencies. Some of them offer a version of full-service real estate with task specialization.

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