Korean Job Discussion Forums

[red_devil]

I want to cross check my information. On the Seoul Global site they list officetel commission rate on "General Residences" of 0.3% if Transaction Amount is between 100M and 300M KRW.

To get your transaction amount you use this formula (for Wolsae):
Deposit + (one month rent x 100) = Transaction Amount (TA)

Then : TA x 0.3% = Commission Rate

HOWEVER,
I'm told that Officetels are not considered a "General Residence" and are an "exception to the rule". And as such are charged typically at 0.6% up to 0.9%. But I have not found any documentation stating this. Can anyone verify this?

[Milwaukiedave]

I know when we signed the lease for our apartment, the deposit (Wolsae) was 20m and our rent was 500,000. We negotiated the fee at 250,000 won for the real estate agents work. Using the figures you give, we got a good deal.

[manofwar]

If you move into an offictel the fee is between 200,000 to 250,000 won. Wolsa or Jeonsa. These are the prices that I have paid over the years. If you stay in the same place DO NOT pay another fee.

[red_devil]

Interesting. These are far far lower than what they are asking me to pay. But my monthly rent is much higher...

[victorology]

[manofwar]

The law and what actually happens in Korea is quite different. I'm giving the post a real personal experience. The fee was 200,000 won to the realtor . The dep. to the offictel is 10,000,000 won and monthly rent is 500,000. If one realtor doesn't want to neg. then move on to the next realtor. Thousands of them around. Happy hunting.

[red_devil]

Except if they found you a place you want to move in to. Then if you don't agree on the commission fee, the realtor will throw the legal book at you and tell you to pay the standard rate which is "supposedly" 0.6% for Officetels. I'm still trying to confirm why offictels are considered an exception to the rule and not considered a "General Residence". I understand that high rise apartments would fall under the "Luxury Residences" most likely. Villas are for sure under the General Residence.

[goingtothecountry]

[Slowmotion]

[red_devil]

[Slowmotion]

[War Eagle]

1000 man won deposit here and 800k a month. The realtor first asked for 700k fee, but I negotiated down to 500k. I asked around to several other realtors about the same unit (because they all can show the same properties) and their prices were the same. I'm not saying I couldn't have gotten it lower, but I did negotiate for over 24 hours.

[victorology]

[jlee83]

10 million key money will usually lower your monthly rent by 100,000.

20 million key = 200,000 monthly discount.

For course, this all depends on the landlord and what they prefer (key money or higher rent).

As for the realtor fee, you just have to shop around A LOT. A couple months ago, I was looking for a place in Gangnam and most of the realtors wanted 700k+ for a 10 million / 1.1 million officetel. Luckily, my cousin introduced me to another realtor who gave me a big discount, but I still had to pay 400,000.

My advice is to shop around, and if you have any Korean friends, ask them to introduce you to their realtors.

[samd]