In Bali there is a general opinion that real estate agents, selling and renting villas in Bali, are an unnecessary expense, because they are lazy, don’t do their job properly and they are only interested in the commission.
That might be the case for some real estate agents, but most real estate agents we know off, are hardworking and only interested in helping the seller finding the right buyer or tenant.
These 7 points are all relevant when you choose to work with a real estate agent.
There is definitely also a general misconception about how much a real estate agent receives in commission, when selling or renting a villa in Bali. Normally the real estate agent receives a 5% commission, when selling a villa or a land and a 10% commission, when renting out a villa for long term.
You might think ”WOW… that’s a lot of money” – and yes, it is potentially a lot of money, but it’s only a lot of money, if the real estate agent actually sold or rented out numerous of properties every month. However, this is rarely the scenario.
Being a real estate agent in Bali doesn’t necessarily make you rich!
If you run a professional agency in a certain size, like we do at Propertia Bali, then there are a lot of running expenses. Office space, employees, marketing costs etc. The list of expenses is unfortunately long, and it is expensive to run a real estate agency.
It’s also very important to mention, that customers don’t come to you “out of the blue”. It’s expensive to attract the right customers through a website or social media like Facebook or Instagram. The competition is tough between the agents in Bali, and because most listings are shared between 3-4 agents, you have to be professional, dedicated and take very good care of your customers.
So remember, when you are choosing your next agent to sell or rent out your villa in Bali, you should choose 3-4 good agents, who has the organisation to supply you with the customer service you expect.
Check their website, their organisation and meet with them and ask all the questions, that you might have regarding your sale or rental.
We hope that Propertia Bali will be on your checklist!
Through the last few months a lot of our potential buyers have been calling us, asking “Are there any villa owners, who are desperate to sell…?” and “Why is the property prices not dropping like many other places in the world..?”
Obviously, they are as buyers, interested in making a “good deal”, but there are several logical reasons to why the real estate market is so strong and stable in Bali!
Firstly, very few properties have debt since they are mostly paid in cash, and therefor the owners are rarely in a hurry to sell.
Secondly, most owners know that the financially consequences of COVID19 are just another “bump in the road” like the volcano eruption and the earthquakes have been. They know, that the lucrative rental business will be back eventually.
Thirdly, Bali is getting more and more noticed worldwide as one of the best places in the World to invest in land and properties. The business magazine Forbes has specifically mentioned Canggu as a great investment in an article back in 2019. They stated Canggu to be “the Brooklyn of Bali” because it’s trendy, hip and a great place for digital nomads. Read the article in Forbes here.
The overall conclusion and prediction from Propertia Bali, is that we are not going to see a “fire sale” in the real estate sector in Bali due to the COVID19.
Crisis or not, there will always be great deals to be made, but we are convinced, that we will not see an overall collapse of the property market in Bali. But with that said, it is still extremely important, that your property is priced according to market value.
Contact us for a valuation of your property here.