Agencies or persons who sell property in Turkey wants high commissions from foreign investors
According to the interview with Ahmet Temeltaş published in the Hürriyet newspaper, Turkey property market lose foreign investors because of the high commission rates.
Foreign interest in the Turkish real estate market is increasing exponentially. Residential sales to foreigners increased by 78.30 percent in 2018 compared to the previous year and rose from 22 thousand 234 to 39 thousand 663. In the first 8 months of this year, the number of houses sold to foreigners increased by 50 percent compared to the same period of 2018 and reached 27 thousand 748.
The withdrawal of the right to acquire citizenship than $ 1 milyon to 250 thousand dollars from Turkey also played an important role in the increase of foreign interest. Sales to foreigners have become more important recently due to the contraction in the domestic market. However, according to sector representatives, an arrangement in this field is a must.
Everyone became a real estate agent
Who could do real estate sales in the domestic market in Turkey, and how much commission will receive, is determined by statutory regulations. According to the latest regulation, the local customer pays a maximum of 4 percent commission. There is no standard in selling to foreigners. The person who wants get into this job and takes commission at the rate he wants.
The Foreigners Pay More Than the Locals
Ahmet Temeltaş, the Chairman of Temeltaş Project Development Company, which provides consultancy services to corporate real estate companies on sales to foreigners, said that 10-15 percent commissions were requested for sales to foreigners. Temeltaş said that when we take into consideration the discount share of the domestic buyer besides the commissions, the foreigner buys the same house more than 30 percent more expensive.
Temeltaş indicating that non-institutional agencies so doing business in Turkey, “Recently, this business came out of the control of agencies. So that there are those who enter into other brokerage business. Waitress, driver, reception worker brings foreign customer. Moreover these are unreceipted transactions. “If you don’t pay 10-15 percent commission, I’ll take the customer and leave the company bad,” he says. But recently the foreigner realized this price difference and they are losing confidence.” said.
Foreign customers should only work with trusted consulting companies
Stating that it is of great importance for the government to make an arrangement in this field, Temeltaş pointed out that, otherwise both the buyer and the seller and the real estate market would be damaged.
“We only sell state guaranteed Emlak Konut REIT partnership projects and title deed ready finished projects. We also provide citizenship-related services as well as all bureaucratic procedures” Temeltaş added.