AmbergrisCaye.com Home Forums The Cayes Ambergris Caye Real Estate Commissions

What is the typical real estate commission in San Pedro? 6%? More? Less? Negotiable? Whatever the traffic will bear?
Do buyers agents and seller's agents (or FSBO's who "cooperate with brokers") split commissions like they do in the US?
I'd be interested in seeing this info posted by realtors, buyers and sellers.

I think that it is 5% and yes some will give you a referal fee if that person looking gave your name before the they started looking with that certain person or company.
Rick

What say you Jesse or Amanda? They are the most accurate on this because they know the business and are professionals.

Jim

Susan, i hear tell that it's 10 percent... and it could be nogotiable.

MR

Susangg,
I tend to think that Mosquito Rose has credibility on that subject. I asked about it, not necessarily on SP, but mainland and that seems to be the percentage spoken.

It was 10% when i lived on San Pedro. Susan should know that as she used to date one of the realtors there!

Whoops, you have me confused with someone else (I hope she's YOUNG and THIN!) I have never "dated" anyone in San Pedro since we first bought property there 11 years ago. I have been married since 1980. My husband may look like a "local" but he isn't. And he's never been a realtor, either here or in Belize.

Susan,

The reason I suggested Jesse or Amanda was because I wanted you to get the answer from people in the business.

I too remember only 10% as the commission to be paid on a sale, but I wanted to make sure.

Okay Jesse, your move. I am sure you are reading this.

Jim

Just listed my property to sell.The commission is 10% plus 8% of the 10% for sales tax on professional services.

I have been busy asking several realtors this exact question since I plan to sell my land. 10% seems to be the going rate though there are a couple exceptions for exclusive listings.

Everyone wants an exclusive listing but to me that didn't seem to be the way to go to ensure the best coverage. They tried tactics such as we will not advertise non-exclusive listings, etc, to try and get me to sign exclusively. The way I figure it those that do the work should reap the benefits.

There is not a multiple listing service in Belize such as we are accustomed to in the states. I have been asked to sign contracts with clauses that if anyone they bring decides to buy within a year after the end of the listing then I would be liable to pay a commission. They also indicated that they will charge prospective purchasers to show the land. They would not consider commission sharing. Lots of requests that I don't feel are reasonable.

I have not run into a request that I pay sales tax on their commission. Seems like they should absorb their own cost of doing business with commissions as high as 10%. I would never agree to paying such a fee.

Actually it is the Belizean lawyer (who costs the buyer an addtional 2-3%) that does the work on processing the titles so I really cannot figure out what the realtors do to ask such a high fee.

Sorry Susan, Guess i had you confused with another susan! My apologys

Yes, I have learned that the commissions asked are way too high especially in relation to the amount of work agents do. They do not seem to put up full fledged web sites for their properties, they don't seem to pay for links to the expat oriented web sites, and they don't "hustle." They just are not "hungry" like US real estate agents are and therefore do not seem to be as customer-oriented as I am used to.
In California, I quickly sold homes by advertising them on the MLS as "FSBO with broker coop" which means you pay a small fee to get on the MLS and sign an agreement offering to pay a commission (typically half the "listing" commission") to the buyer's agent. All the agents come to your open house with their buyers and they all "work" to sell your home to THEIR client because that's the only way they earn their commission. In other words: You, the agent, get paid only if you produce a buyer. I like that (I get paid the same way: If I don't win I don't get paid.)
At first the Calif. agents refused to coop with FSBO sellers, but an anti trust suit was filed to open up the MLS and it was successful.
That won't happen in Belize, of course. But if enough sellers refuse to pay "what the traffic will bear" it won't bear it any more. And if there is a MLS in San Pedro, it seems not to be particularly necessary.
I think a very high percentage of people who are considering buying property in Belize are net-savvy and use the web as their first resource.
They quickly learn that the title of "real estate agent" is not as it is in the US -- not regulated, no requirements, no licensing and anybody can call themselves one. Not to denigrate anyone, and there are some excellent agents in San Pedro, but there is no protection in buying a property (or selling one) using an agent as there is in the US, you need a lawyer for that purpose. So if anything, the commissions should be less, not more.
I can't blame agents for asking for what seem to me to be exorbitant commissions if people will pay it. That's free enterprise. It will change when sellers stop paying it, I guess.
I won't pay it, myself.
We'll see if any agents change their minds. I guess they will if they get hungry and have a buyer ready to buy. Some money is better than no money. Eventually, some local realtors will figure out that there is a good entrepreneurial opportunity to work as a "buyer's agent" and will start chasing buyers instead of "listings." I know some very successful agents in California who do just that.

Susan,

Keep in mind that real estate agents in Belize are unlicensed, unregulated and in most cases untrained. If they are American expats, and selling real estate is one of the main occupations of American expats in Belize, chances are they were waitresses or welders back home. There are exceptions, and there are some exceptions in San Pedro, and a few real estate agents who actually know something about real estate, but most know nothing about property and little about Belize.

Don't take my word for it, though. Emory King, who has been in Belize 50 years, says this: "Remember, any jerk can print a business card and become a real estate agent in Belize."

San Pedro is, again, something of an exception, but in most of Belize 98% of property that's for sale isn't listed with agents. To buy property, you just ask around, or go knock on a door of a property you like and ask if it's for sale.

--Lan Sluder

i know lots of excellent very reputable real estate people in San Pedro...

Lan, I hear you!
Which makes one wonder why they demand such exorbitant commissions?
And who ever heard of making your customers pay YOUR income tax? Can you imagine a lawyer, a doctor, an accountant asking you to pay a proportional share of HIS income (not sales) tax on YOUR contribution to HIS income???
So why should a real estate agent demand this?
Worse yet, I just saw one realtor's web site (he shall go un-mentioned....but you know who you are) that tells viewers that non citizens must first apply for an "alien landholding permit" in order to buy any property on Ambergris Caye. Either he knows that is not true (which says something about his ethics) or he is incredibly lacking in knowledge of his own country's real estate laws (which is inexcusable for a real estate agent.) Either way, it does not make me want to hire him at ANY price to "represent" me.

susangg: the 8% tax in question is a "sales tax" which the government of Belize says is to be collected from the client... not absorbed by the real estate broker although some brokers go ahead and absorb it anyway. It is definitely NOT an income tax.
The real estate broker that mentioned an alien landholders license apparently hadn't updated his or her website to reflect the fairly recent abolishment of this long-standing requirement.
I'm not current on commission rates but have seen several ads here in the local papers where real estate brokers were advertising cut-rate fees like 6%. Of course, you can only imagine the costs of doing business in a front street office on this island where the costs are tremendously inflated... higher than the US in most cases.

Jesse: It must have been a REAL "long-standing requirement," 'cause it was not in effect when we began buying our condos in 1989; in fact, when it did apply it was only to large plots of land (over 1 half acre, I believe) in city areas.
It's not just a matter of "failing up update a web site" with better photos, etc. He is purporting to dispense legal information, in his capacity as a "real estate professional" and it is supposed to be accurate.
As for the tax being a "sales tax," you would know that better than I, as I believe you are a business consultant? If such a tax applies to the "sales" of services, it must also apply to the "sales" of all services, correct? I did not get billed for "sales" tax in any of my invoices from my Belizean lawyer. Interesting.
Do the agents have to pay income tax on top of the so called "sales tax" on their earnings? If sso, then that would probably make it a "sales tax," (or if thats what the tax code says it is; either a sales tax or a "VAT", and I would agree with you. If not, it would be in the nature of an income tax and should not be passed on to customers.

I am well aware of the cost of doing business in San Pedro. But am I supposed to be willing to pay more than I believe a service is worth because the purveyor has high overhead costs? Maybe some people would do that, but I sure won't.

Here's the bottom line: I think the real estate agents in San Pedro charge too much commission for what they do (and don't do). So I will sell my condos "FSBO." I may be in the minority, and if so, it will make no difference whatsoever to the agents. If a lot of other people do likewise and are successful, local realtors may need to rethink their fees and lower their fees, ratchet up their services, or both. Only time will tell.

I suspect that the net will have the same impact on real estate practices as it has on tourism in Belize: disintermediation will increase. That's my opinion, but of course, I could be wrong....

susangg: at the time you bought your "condos" the alien landholders license requirement applied to any purchase of 10 acres or more in the country or 1/2 acre in town. Later the law was changed to additionally apply to ANY purchase on the cayes.
The add-on sales tax of 8% applies to food prepared in restaurants, and professional services among other categories. Your attorney should have charged that as a separate item on youir invoice... or was that before the sales tax went into effect?
Yes, the real estate agent does pay a business income tax as a percentage of his/her gross receipts.
Although you may not be directly concerned with the cost of doing business, you should be interested in the sucess and competency of your agent... you would't want representation from someone who doesn't even have a "real" business would you?
I'm sure you can find someone who will happily "list" your property for a lower commission rate that you will find acceptable. You might check with the taximen who are always trying to hustle real estate.

Susan, I have to agree with you on this one as far as the concept of "DIY" goes. I personally know of a handful of reputable real estate agents doing business in San Pedro. I also know that Jesse is reputable, if not directly involved in day to day real estate at this time. HOwever, I have found the best way to go in Belize is Do It Yourself. You will save $$$, you will always have YOUR best interest at the front of everything, etc. Belizean lawyers have no "conflict of interest" ethics to deal with either. It will take more time, but saving 8% is nothing to sneeze at either, 'cause nothing is a cheap as it first seems (for example, IMMISSING). hehehe. Anyway, asking one of the SP taxi driver's for a real estate lead is a GREAT idea, provided you are willing to conduct the due diligence as to title, ownership, cautions, etc.

Thanks for the clarification, Jesse!
I won't have to worry about it because I am not "listing" with anyone! I will have the person who has always sold all my houses fast "represent me" -- Me! I will sell them FSBO, with a home page on the incomparable //www.ambergriscaye.com and ads or links on all the expat web sites (www.escapeartist.com; www.internatinalliving.com; www.caribepro.com; etc. etc.) New web page should be up by the end of next week, waiting for new pix.
I will also have my lawyer (the one who pried my title away from the Belize Bank)handle the legal issues. Our manager will show the property and we will happily pay her to do so. And yes, I agree taxi drivers are an excellent resource for our FSBO flyers.
I'll let this board know how long it takes to sell, for the benefit of other FSBO sellers (and buyers) out there who may benefit from my good or bad experiences.

Some people keep comparing real estate transactions in Belize to those in the Unitied States. These are two different countries and although Belize follows British common law, certain things are different.
I just started to look into real estate in Belize this year and have quickly found out many of the things that have already been mentioned (no regulation, licensing, ect.) I've never seen any comission price written in stone so as far as I am aware, everything is negotiable. With all the talk of how Belize is so laid back, I'm shocked to see why some people can't imagine why agents there aren't hustling for the clients. Maybe because people there are not money hungry like they are in CA (where I live). It's a different lifestyle and a different culture. It seems like most of the people selling real estate of value are American anyway. I have no idea what there backgrounds are or how knowledgable they were in their field anyway. One might ask, if they were very successful, why did they leave. If they did leave, maybe they really don't need the money and choose to charge higher comissions. There is truth that if people quit buying because of the high comissions, more agents would lower their rate. The problem is that you are not going to get that to happen (especially, since people have been known to buy these properties sight unseen).
I am currently pursuing my real estate license and even with that added knowledge, I don't feel I have much of an advantage when I am there.

Nate

GENERALLY SPEAKING .........here is how they do it in Belize:

COMMISSION RATES - VARY WITH TYPE OF PROPERTY AND SERVICES RENDERED BY LISTING AGENCY:
Raw Land - 10% (same as California)
Condos/Homes - 6-8%
"Other" - multi-million / remote / unusual properties ........ as may be negotiated.

BROKER CO-OP:
Some do and some don't. Of those who do, they co-operate only with other brokers they consider reputable and honest. When they split commissions, it is generally a 50-50 split.

CHARGING TO SHOW PROPERTY:
A "discount" broker may not have enough money to own a means of transportation, and therefore may be charging for every showing.
On the other hand - some of the more exotic properties like private islands, etc. have hard costs upwards of $500 US per showing and take a day or two to see. In this case it is customary for the prospective buyer to pay boat, plane or 4X4 rental/charter costs, and to be re-imbursed at closing if they buy.
On AC some brokers charge a small fee for places like Robles and Palm Bay Club as a way of of "qualifying" buyers, and to ensure they are not inadvertently operating as "tour guides" instead of real estate agencies.

Hope that information helps.