It’s important to work with a real estate agent in the Philippines, whether buying or selling a property. Especially foreigners unfamiliar with the local real estate market benefit from working with a real estate agent in the Philippines.
Real estate agents in the Philippines are more than just property finders. They support you along the journey and serve as tour guides. They will even help you through purchasing or selling a home. They know the ins and outs of the varied real estate market in the nation. Let’s examine how having a Filipino real estate agent on your side can significantly simplify everything.
What is a real estate agent?
Real estate agents in the Philippines are your go-to helpers when dealing with property transactions. Considering the lively property market, having an expert makes the process smoother. They are a middleman for buyers, sellers, tenants, and landlords, assisting in negotiations and addressing queries.
Once a deal is set, the real estate agents in the Philippines ensure all paperwork gets done correctly and timely. They help with offer handling, relevant documents, inspections, move dates, and even closing deals. Essentially, they’re your guide, making sure every step on your property journey is a success.
Whether you’re selling (with a listing agent) or buying (with a buyer’s agent), these professionals bring immense value. A real estate agent in the Philippines helps sellers set the right price, suggest property enhancements, and promote property listings effectively. For buyers, they carefully pick properties within the desired budget and preferences. In short, a Filipino real estate agent is your valuable partner in navigating the dynamic Philippine property market.
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Top 5 benefits of having a real estate agent in the Philippines
The real estate market can be overwhelming, especially if you enter it. Having a real estate agent in the Philippines can make your journey smoother.
1. Expert guidance through the buying process
One of the prime benefits of having a seasoned real estate agent in the Philippines is their expertise in the buying and selling process. They’ve successfully navigated numerous transactions, providing the quality service you need. They can foresee complications, advise you accordingly, and ensure your real estate journey is smooth and stress-free.
2. Comprehensive knowledge of the market
Real estate agents in the Philippines have an in-depth understanding of the ever-changing market trends. Pricing, interest rates, and loan fees – all these fluctuating figures can confuse even the best of us. An experienced agent can access current property price comparisons and market trends, helping you get a clearer picture.
3. Personalized property search
Your specific needs and preferences are a top priority to a real estate agent in the Philippines. They take time to understand what you want and then use this information in their research. They can reveal hidden gems in their extensive property listings that you might not find alone. They know upcoming developments and can advise on the future potential of a property.
4. Professional negotiation skills
Negotiation is key in real estate transactions, and this is where a real estate agent in the Philippines comes in. If negotiating isn’t your strong suit, a seasoned agent can handle this, ensuring you secure the best deal possible for your dream property.
5. Stress-free paperwork
The paperwork in property transactions can be complicated and time-consuming. It’s nothing to worry about when you have a real estate agent in the Philippines. Their proficiency in managing various property-related paperwork guarantees that every form is accurately completed and submitted, thereby simplifying the process of purchasing a home.
What are the different kinds of real estate professionals?
In the real estate industry in the Philippines, there are several types of professionals, each with different functions and responsibilities:
- Real estate agent: This professional is licensed to conduct real estate transactions, has a bachelor’s degree, and is of good moral character. Their jobs vary, and they charge fees based on the services provided. The Professional Regulation Commission of the Philippines oversees them and mandates regular learning and license renewal.
- Real estate consultant: These registered and licensed professionals advise on all real estate projects or property management aspects.
- Real estate appraisers: These licensed professionals estimate the value of a property and provide a written report explaining the valuation.
- Real estate assessors: These professionals are registered, licensed, and employed by the local government to appraise the value of properties and calculate tax obligations.
- Licensed real estate broker: Registered and licensed by the Professional Regulatory Board of Real Estate Service, they’re authorized to buy, sell, exchange, and lease real estate.
- Real estate salesperson (Agent): Licensed agents who work under a broker. They assist in buying, selling, and renting real estate and are compensated with a commission, usually a percentage of the property’s sale price.
- Realtors: Realtors are agents or brokers who are members of the National Association of Realtors (NAR USA) or the Chamber of Real Estate & Builders’ Association, Inc. (CREBA).
Each professional contributes to the real estate, ensuring operations are accurate, legal, and beneficial to all parties involved.
Real estate broker vs. agent in the Philippines
A real estate broker in the Philippines is a professional licensed by the Philippine Regulation Commission (PRC) who earns a commission from various real estate transactions such as the sale, purchase, exchange, mortgage, lease, or joint venture. The broker is the mediator between the property buyer and seller, legally authorized to facilitate negotiations leading to a deal. A real estate broker can practice the profession independently, without an agent, and become a realtor.
A real estate agent in the Philippines is an accredited individual who works under a licensed real estate broker. The agent provides services in anticipation of receiving a portion of the commission, professional fee, or other valuable consideration. A real estate agent in the Philippines doesn’t require a PRC examination; however, the agent must possess a PRC Accreditation ID to practice real estate service in the Philippines under a licensed broker’s supervision.
The agent’s activities are under a real estate broker’s direct supervision and accountability. They cannot independently sign written agreements about a real estate transaction, but with the full knowledge of the supervising licensed real estate broker, they can co-sign. A real estate agent in the Philippines can’t practice real estate service in the Philippines without a broker’s accreditation. Doing so would be considered illegal practice of real estate service.
5 steps on how to check a real estate agent license in the Philippines
Looking for a real estate agent in the Philippines? It’s essential to ensure your agent’s credibility before engaging their services. Here are five steps on how to check the license of a real estate agent in the Philippines:
1. Seek referrals
Referrals from friends, family, or previous clients can be a reliable source to verify an agent’s credibility. An agent recommended by a known contact indicates that they have had a satisfactory experience with that agent. If you don’t know anyone who can suggest a reliable agent, consider researching the agent’s past clientele.
2. Check their license
Real estate brokers in the Philippines must pass an exam and acquire a license under the Real Estate Service Act of the Philippines (RA 9646). This law aims to protect homebuyers from unethical practices. You can verify a realtor’s Philippine Regulation Commission license on their website. Those guilty of any crime or misconduct won’t be issued a license.
3. Ask questions
A competent real estate agent in the Philippines can answer all your queries. They should be knowledgeable about the properties they’re selling and must not need to refer your questions to their team. Also, a credible agent will ask you questions to identify the best matches for your preferences and budget rather than just suggesting properties indiscriminately.
4. Evaluate their offerings
A trustworthy real estate agent in the Philippines has extensive networks, providing various properties. Once the sale closes, you can still contact your agent for assistance. An incredible broker, however, will go beyond this: they’ll negotiate for a better price and flexible payment terms.
5. Pay attention to their discussions
A credible real estate agent in the Philippines will provide a balanced view of the property’s pros and cons. Beware of agents that over-enhance the property or exclude any downsides. It’s essential to keep in mind, though, that real estate agents in the Philippines are there to sell properties. Unsolicited mention of property faults isn’t their job. Be proactive and ask about the potential negatives when looking for a property.
Real estate agent commission rates in the Philippines
A real estate agent in the Philippines typically earns through commission, which is a reward for their successful sales. Besides their base salary, this commission is their incentive, following a principle of “no sale, no commission.”
Commission fees usually range from 3% to 5% of the property’s sale price. So, in essence, the buyer indirectly pays the agent’s commission. For example, if you buy a property priced at ₱ 5 million ($90,000), the agent’s commission from this purchase – let’s assume at a rate of 3% – would be ₱ 150,000 ($2,700). This amount is a part of your payment that rewards the real estate agent for facilitating the sale.
Buy property in the Philippines with Own Property Abroad
Do you want to buy property in the Philippines? Knowing the regulations and property laws in the Philippines can be confusing, especially for foreigners. Own Property Abroad can assist you and ensure a seamless and hassle-free property journey. Thanks to our knowledge and experience in the local market, we can help with legal requirements, finding suitable properties, negotiating the best deals, and conducting due diligence.
With our expert team, you won’t have to navigate the complexities of the Filipino market alone. For further information on how we can assist you, kindly drop your details below or email us at email@example.com. Let’s start working on your property success story today!
Get help with buying property in the Philippines
To sum up, handling real estate transactions in the Philippines necessitates knowing the differences between a real estate agent and a broker. An agent assists a broker in providing various real estate-related services, while a broker is a PRC-licensed professional who directs negotiations between buyers and sellers. Therefore, whether you’re buying or selling a property, securing a trustworthy and competent real estate agent in the Philippines can ensure smooth and successful transactions while following the regulatory requirements.
Frequently Asked Questions (FAQs)
How to know if a real estate agent is legal in the Philippines?
You can check a real estate agent’s legality by verifying their license on the Philippine Regulation Commission’s website.
How much is the commission of a real estate agent in the Philippines?
Real estate agents usually receive a commission between 3% and 5% on the property’s sale price.
What is the difference between a broker and an agent in the Philippines?
A real estate agent assists clients in buying or selling properties. They usually work under a broker who manages and directs them. The broker is a professional who passed the Real Estate Brokers exam, mandated by Philippine law.