Agents
There are a lot of property development schemes here, a lot of new properties, a lot of re-sale properties and a lot of property buyers. There are, inevitably, a lot of property, or real estate, agents. Quite a few big firms, and a lot of small firms.

Any buyer will need assistance in order to find the 'right' property or property investment, and they'll need good advice from a good agent. Even people that 'know' the Costa often 'know' one part of it, and need help to expand their horizons or search further from 'home'.

Many agents share access to the same huge database of properties and developments; they will have their 'own' properties too, but often these will also be available to other agents to sell as well. In that respect, it is much less appropriate, or necessary, to talk to lots of different agents than it is in the UK - they tend all to be fishing in the same pool.
What is more important, is talking to a good trustworthy agent.

What are the realities of Agents and Agencies?

Most individual agents - people - are reputable and honest, and exert themselves well beyond the call of duty to try to find the right property for their clients. Contrary to cynical 'street-wise' opinion, they work hard to put their clients' interests first. Many agency firms reflect these qualities.

But some firms and some people are not trustworthy - this is probably inevitable with such a big market. There are too many stories of agents that mislead, or are told to mislead by their firms, or of firms that deceive or are blatantly dishonest. It is sad to report that this is the case with some very big, well known, companies.

It is currently (August 2005) reported that practically every large estate agency firm has serious financial problems and amongst the signs of this are -

• Some large firms have closed down many of their offices
• Some large firms have turned their attention to other emerging property markets, such as Eastern Europe and South Africa
• Some large firms have stopped paying staff, self-employed salespeople, sub-contractors and suppliers
• Some large firms have 'committments' to investors in their own developments to sell-on at promised profit levels before construction is complete, but are having extreme difficulties doing so.

Many individual agents - those that buyers come into first-hand contact with - are self-employed on a commission-only basis. The time they spend with potential purchasers is completely at their own expense, as is their car fuel and telephone bill. If you do not buy, they receive nothing; they are not on a salary. If you do buy they will probably receive only a small proportion of the commission their agency receives, but only when the sale is fully complete (not when the deposit is paid), probably many months afterwards, assuming their firm actually pays them. Many firms hire and fire agents on the premis that by doing so they will escape settling any commission payments due them.

Commissions
Big firms have big overheads and add large commission percentages (7.5% or even 10%) to baseline property valuations. Smaller firms charge significantly less (often 5%). One or two that we know, charge 4%. There are a couple of end-results to this. Firstly, big firms wax fat (not their individual sales agents who get just a small fraction of this) and drive up prices. Secondly the same "500,000€" property may be on sale through different agents at 520,000€, 525,000€ or 537,500€.

Off-Plan Multiplication
A couple from Kent bought three off-plan units in the same development close to Puerto Banús, Marbella. They bought them after being mentally worn-down by a salesman who pressured them from the moment he picked them up from the airport to the moment that he dropped them back. After initially being reluctant to make a multiple purchase, when put in front of one of the directors of the real estate agency, they found themselves coming around to the idea and the deposit was paid. They were attracted by the 'guarantee' that by selling the three units before completion, at prices up to 40% higher than the initial purchase price; they would be able to comfortably afford the villa that they had actually come out to purchase.

24 months later, they have managed to sell one unit at a small profit, but have had to re-mortgage their home in the UK and take a loan from an uncle in order to finance the remaining units which have now reached completion. The stress has been intolerable, the dream villa is now unattainable and the agent refuses to offer a solution or indeed return calls or emails.

Some points arising from this sad and not unheard-of story . . .

• Buying off-plan is not in itself a problem, provided of course one understands what this particular strategy means in reality - the procedure, timescale, risks and potential rewards. It can be extremely successful for the right investor or buyer, but in the right circumstances, in the right place.
  
• The days of making easy money from multiple off-plan purchases have almost certainly gone from the Costa del Sol, at least for small investors with relatively small pockets wanting a fairly fast return.
  
• Salespeople have a job to do and a certain degree of intelligent persistence comes with the territory. But always immediately walk away from any situation where undue, unusual or unfair sales pressure is being applied - there is always a rat to be smelled.
  
• Property dreams do not come twinkling in the night whilst you're asleep. They come about through common sense, effort and good advice.
  
• Guarantees, like insurance policies, are for when things go wrong and are usually in writing. Ask yourself or the salesman "How do you make a 'claim' under this 'guarantee'?" Some developers do offer written guarantees regarding buy-backs and rental-returns, but not many and there is a cost implication.
  

TimeShare Agents and Properties
The Costa del Sol was one of the earliest timeshare territories (although timeshare problems are not at all confined to it). The crimeshare.net website (no connection with this one) contains reports of alleged timeshare company problems.

In an effort to 'clean up' its name timeshare now goes under some other titles.