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red_devil
Joined: 30 Jun 2008
Location: Korea
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 Posted: Tue Nov 23, 2010 1:05 am Post subject: Real Estate Commission Rate |
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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? |
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Milwaukiedave
Joined: 02 Oct 2004
Location: Goseong
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| Posted: Tue Nov 23, 2010 3:25 am Post subject: |
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| 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. |
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manofwar
Joined: 12 May 2004
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| Posted: Tue Nov 23, 2010 4:06 am Post subject: fee |
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| 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. |
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red_devil
Joined: 30 Jun 2008
Location: Korea
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| Posted: Tue Nov 23, 2010 4:49 am Post subject: |
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| Interesting. These are far far lower than what they are asking me to pay. But my monthly rent is much higher... |
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victorology
Joined: 10 Sep 2007
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| Posted: Tue Nov 23, 2010 5:19 am Post subject: Re: fee |
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| manofwar wrote: |
| 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. |
This is not the average fee for an officetel.
By law, real estate agents can charge up to 0.9% of (deposit + [rent*100]) for an officetel. So if your deposit is 10 million won and monthly rent is 700,000 won, then by law, the real estate agent can charge up to 720,000 won.
Of course, everything is negotiable. If you don't negotiate, the real estate agent will charge you the maximum allowed by law. For officetels, I would try to cut the rate in half. In the above example, I think you could get away with 350-400,000 won for the fee. |
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manofwar
Joined: 12 May 2004
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| Posted: Tue Nov 23, 2010 10:02 am Post subject: fees |
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| 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. |
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red_devil
Joined: 30 Jun 2008
Location: Korea
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| Posted: Tue Nov 23, 2010 6:32 pm Post subject: |
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| 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. |
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goingtothecountry
Joined: 15 Aug 2010
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| Posted: Tue Nov 23, 2010 9:20 pm Post subject: |
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| Milwaukiedave wrote: |
| 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. |
You are getting ripped big time. No matter how nice the place, unless it's furnished, if you're paying 20 M deposit, you shouldn't be paying more than 250,000-300,000 for rent. I know someone with a nice 2 bedroom paying 10 M deposit and his rent is only 200,000. |
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Slowmotion
Joined: 15 Aug 2009
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| Posted: Wed Nov 24, 2010 3:20 pm Post subject: |
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| red_devil wrote: |
| Interesting. These are far far lower than what they are asking me to pay. But my monthly rent is much higher... |
I live in Gangnam where the realtors try to often overcharge. My rent is 750,000 a month and 1000만원 deposit. I ended up paying 370,000 to the realtor, although they tried to charge more.
Another poster on here got a ton of realtors trying to charge him in the 500-700k range before finally finding a reasonable rate.
| Quote: |
if you're paying 20 M deposit, you shouldn't be paying more than 250,000-300,000 for rent. I know someone with a nice 2 bedroom paying 10 M deposit and his rent is only 200,000. |
n00b alert? |
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red_devil
Joined: 30 Jun 2008
Location: Korea
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| Posted: Wed Nov 24, 2010 8:59 pm Post subject: |
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| Slowmotion wrote: |
| red_devil wrote: |
| Interesting. These are far far lower than what they are asking me to pay. But my monthly rent is much higher... |
I live in Gangnam where the realtors try to often overcharge. My rent is 750,000 a month and 1000만원 deposit. I ended up paying 370,000 to the realtor, although they tried to charge more.
Another poster on here got a ton of realtors trying to charge him in the 500-700k range before finally finding a reasonable rate.
| Quote: |
if you're paying 20 M deposit, you shouldn't be paying more than 250,000-300,000 for rent. I know someone with a nice 2 bedroom paying 10 M deposit and his rent is only 200,000. |
n00b alert? |
10M and 200,000 for a nice two bedroom in Gangnam??? Sounds like total BS to me. My friend just moved into a building pretty new (about 3 years old) near Gangnam Stn. officetel with sliding door separate room at 20M deposit 1.5M rent. Realtor originally asked 1M fee, but he negotiated down to 800,000...it's proportionate to the monthly rent i guess. |
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Slowmotion
Joined: 15 Aug 2009
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| Posted: Thu Nov 25, 2010 1:05 am Post subject: |
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| red_devil wrote: |
| Slowmotion wrote: |
| red_devil wrote: |
| Interesting. These are far far lower than what they are asking me to pay. But my monthly rent is much higher... |
I live in Gangnam where the realtors try to often overcharge. My rent is 750,000 a month and 1000만원 deposit. I ended up paying 370,000 to the realtor, although they tried to charge more.
Another poster on here got a ton of realtors trying to charge him in the 500-700k range before finally finding a reasonable rate.
| Quote: |
if you're paying 20 M deposit, you shouldn't be paying more than 250,000-300,000 for rent. I know someone with a nice 2 bedroom paying 10 M deposit and his rent is only 200,000. |
n00b alert? |
10M and 200,000 for a nice two bedroom in Gangnam??? Sounds like total BS to me. My friend just moved into a building pretty new (about 3 years old) near Gangnam Stn. officetel with sliding door separate room at 20M deposit 1.5M rent. Realtor originally asked 1M fee, but he negotiated down to 800,000...it's proportionate to the monthly rent i guess. |
I think you're confused, I was replying to goingtothecountry. No one was talking about a 2 bedroom apartment in Gangnam.
1.5 rent? Unless he's making a lot of money, I don't see why anyone would do that. |
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