Apartment buying process confusing in Buenos Aires. Do I need to use the seller's realtor?

[tootsi]

I am in the process of buying an apartment in Buenos Aires. It is a frustrating process here! I contacted a realtor to show me some possible listings while I was in town. I was only in town one week but I thought I would be able to see all the apartments that I had on my list. But I only saw 2 apartments the entire time I was there. The process is totally different than buying in the States. I was surprised.

It seems like everything here is not efficient and they don't really have open houses. On some visits I had an appointment and then the owner cancelled the showing at the last minute. Some others the realtor that I was going to use never could set up showings so then I contacted the listings on Zonaprop directly and managed to see one of them. Now that realtor said I had to use them if I bought that property since my realtor could not attend. And now my realtor is angry at me.

Totally inefficient process here. I know I will have to pay a 4% realtors fee as all the listings had that fee but if I have my own agent do they split that with another listing agent?

Any other important advice anyone can give when buying here?

 

[Betsy Ross]

I am in the process of buying an apartment in Buenos Aires. It is a frustrating process here! I contacted a realtor to show me some possible listings while I was in town. I was only in town one week but I thought I would be able to see all the apartments that I had on my list. But I only saw 2 apartments the entire time I was there. The process is totally different than buying in the States. I was surprised.

It seems like everything here is not efficient and they don't really have open houses. On some visits I had an appointment and then the owner cancelled the showing at the last minute. Some others the realtor that I was going to use never could set up showings so then I contacted the listings on Zonaprop directly and managed to see one of them. Now that realtor said I had to use them if I bought that property since my realtor could not attend. And now my realtor is angry at me.

Totally inefficient process here. I know I will have to pay a 4% realtors fee as all the listings had that fee but if I have my own agent do they split that with another listing agent?

Any other important advice anyone can give when buying here?

The process is definitely MUCH different here compared to many places. It's a much slower process here. Inefficient is putting it lightly! When I purchased my apartment here I wanted to pull my hair out. I used a realtor that one of my friends used when she purchased here and I thought she was just OK because I was comparing my experience with the USA. Once I figured out how chaotic things are here I changed my toon quickly.

Problem here is you are dealing with fussy owners that often times flip flop on if they want to sell or not. On the property I ended up buying, I made an offer for about 5% less than asking price. She refused and held out for full asking price. I agreed. We signed an offer letter and then even though we had an agreement she changed her mind and asked for $10,000 more! It was frustrating. I backed out and walked away and then 2 weeks later she came back with an offer for $5,000 more. I really liked the property so I agreed.

You typically should have your own buyer's agent because the sellers agent mostly wants to get the highest price possible. They do share the commission for the buyer and the realtor for the seller also gets a commission from the seller too that the buyer's agent doesn't get.

The most important thing is to find a good Escribano. An Escribano is a lawyer that must handle the closing. The check all the property history and make sure there are no liens, mortgages, issues on the property. Very important person. You always get to select the Escribano for the closing as a buyer.

 

[Johnny]

@tootsi totally know what you mean! I went down to Buenos Aires last year and looked at several apartments. Buying a used property there was a hassle because I had a long list of properties that I made on Zonaprop but when I got there they were already sold or stopped taking offers. It was frustrating as they still had their listings up on line. I wasted a lot of time in that process. In the US, our websites are much better and have ALL the inventory but BA wasn't like that. I even saw the same apartment listed a few different times.

I was told to always have your own buyer's agent so they can negotiate the best deal for you. I ended up hiring @BuySellBA - www.buysellba.com and they have a lot of great advice on their website. In the end I bought an off plan property that was being built. What bothered me about many of the older properties was the kitchens and bathrooms and flooring were ancient and I would have had to renovate all of that and I didn't want to take on that project.

I bought the unit to use myself but also to rent out when I'm not there and you have to be careful because I was told that some buildings you can't rent out Airbnb's so I bought in a building that was zoned for that so I wouldn't have issues.

@Betsy Ross you're wrong about always getting to select the Escribano. On my new apartment, I had to use the constructor's Escribano. I was told the only time you don't get to select the Escribano was on new construction properties.

I met a really great Escribano that I hired to get my tax ID number (CDI #) and she also prepared a power of attorney document so the company that I hired could close for me. That way I didn't have to fly back down for the down payment and closing. They will do that for me.

My building is done in about 2.5 months so I can't wait! Feel free to ask me any other questions or if you need a referral to the realtor I used or the Escribano. She was really great and spoke perfect English.

 

[Betsy Ross]

@Betsy Ross you're wrong about always getting to select the Escribano. On my new apartment, I had to use the constructor's Escribano. I was told the only time you don't get to select the Escribano was on new construction properties.

You are totally correct @Johnny. I stand corrected. I forgot on new constructions you must use the escribano from the building. All my friends that purchased in new construction projects couldn't select their own lawyer. Both used the buildings lawyer.

 

[earlyretirement]

I am in the process of buying an apartment in Buenos Aires. It is a frustrating process here! I contacted a realtor to show me some possible listings while I was in town. I was only in town one week but I thought I would be able to see all the apartments that I had on my list. But I only saw 2 apartments the entire time I was there. The process is totally different than buying in the States. I was surprised.

It seems like everything here is not efficient and they don't really have open houses. On some visits I had an appointment and then the owner cancelled the showing at the last minute. Some others the realtor that I was going to use never could set up showings so then I contacted the listings on Zonaprop directly and managed to see one of them. Now that realtor said I had to use them if I bought that property since my realtor could not attend. And now my realtor is angry at me.

Totally inefficient process here. I know I will have to pay a 4% realtors fee as all the listings had that fee but if I have my own agent do they split that with another listing agent?

Any other important advice anyone can give when buying here?

Hi @tootsi,

Buying a property here in Buenos Aires can be a really confusing and frustrating process. As you mentioned, it's much different vs. first world countries. Many people experience the same frustrations that you experienced. I will say over all here in Buenos Aires, the realtors can't compare to real estate agents in the USA. Here, they can seem lazy or not motivated compared to their counterparts in the USA. But sometimes it's not fair to blame just them because they are dealing with a very inefficient system here with crazy and unreliable sellers or the seller's agents.

When you go on Zonaprop - https://www.zonaprop.com.ar/ You have to understand that isn't a true MLS system. Not all the properties for sale are on there. And many times on "pozo" (new construction) properties the information isn't accurate on them or they will only advertise one floor plan when they have many different units.

It's always a good idea to have your own buyer's agent that can guide you and always protect your best interests and help you get the best and fair price. If you contact the listings direct on Zonaprop or any other realtor's agency, you are stuck dealing with the seller's agent and they never look out for the buyer.

The best advice I can give after buying literally hundreds and hundreds of properties in Buenos Aires, is use people that can speak English if you're not fluent in Spanish. Look at the buying process as a team approach where you have your own realtor, your own Escribano, your own accountant and any possible consultants/advisors.

People gave solid advice to have a great Escribano. That's probably the most important person in the entire process. You need to make sure you have a good Escribano that will make sure all the paperwork is in order. Or if you're buying in a new construction development, make sure you are buying from a reputable developer that has been around for at least 10+ years. Preferably over 20 years that has build many towers.

Once you find a property and negotiate it, you aren't done. You still have to deal with legally getting the cash into Argentina so just make sure you understand everything, cost and fees, tax obligations, etc.

Good luck.

 

[Vince]

Great advice above. Take all the advice about a good Escribano @tootsi. Remember that the Escribano isn't just checking the history of the property but they also need to make sure there aren't issues with the utilities. My friend purchased an apartment in San Telmo that had many issues with electricity. I think the neighbors were all illegally tapping into it. I can't remember the exact circumstances but after he closed he found out unless he paid a huge bill he wouldn't have electricity. The lawyer has to check all of that stuff.

 

[tootsi]

Thank you everyone! I thought it was only me and I had bad luck with listings. It is reassuring to know that it wasn't just my agent. @Johnny thank you for the advice and I sent you a DM if I can get the Escribano you used. So that Escribano got your tax ID # for you? Did you have to do anything at all for that or go to the tax office? I think it's called AFIP? Thanks for that website. I will read it in detail.

It's a good idea to look at off plan units but someone warned me to be careful as some projects never finish. Thanks @earlyretirement about the advice to use a builder that has been around a long time. I will do that.

Thanks to everyone.

 

[Digital Nomad]

It's not just you @tootsi. Realtors here suck. Response time to get back quickly is horrible. In reading the posts above maybe not all of it is their fault but I still think compared to the States it is a horrible process here. I looked at several properties and owners are very flaky here. Some flip flop on the price. And some are listed that aren't really for sale. I had a few bait and switch where I liked a listing and then they told me it was all sold out and tried selling others. I don't understand why realtors dont' take the listings down once they are sold!

I am kicking myself for not buying last year because prices have gone up since then.

 

[RN in BA]

I am in the process of buying an apartment in Buenos Aires. It is a frustrating process here! I contacted a realtor to show me some possible listings while I was in town. I was only in town one week but I thought I would be able to see all the apartments that I had on my list. But I only saw 2 apartments the entire time I was there. The process is totally different than buying in the States. I was surprised.

It seems like everything here is not efficient and they don't really have open houses. On some visits I had an appointment and then the owner cancelled the showing at the last minute. Some others the realtor that I was going to use never could set up showings so then I contacted the listings on Zonaprop directly and managed to see one of them. Now that realtor said I had to use them if I bought that property since my realtor could not attend. And now my realtor is angry at me.

Totally inefficient process here. I know I will have to pay a 4% realtors fee as all the listings had that fee but if I have my own agent do they split that with another listing agent?

Any other important advice anyone can give when buying here?

I had the same lousy experience that you did tootsi. I was down there longer so I had more time to see properties but it was like pulling teeth to go and see properties. I speak fluent Spanish so no communication barriers. Just a different system here. Something I noticed in BA is even though an apartment is listed by a realtor, they almost always had to check with the owner when they could show it. No one seems too motivated there to sell their property!

My realtor told me that many of these people selling their property would need to find something else if they sold it. Another thing that was shocking here is there are no mortgages for foreigners here. You have to have 100% cash to buy. The closing fees were high too as there were legal fees, taxes, realtor's fees and money transfer fees getting the cash to Argentina.

I just decided to wait until I had more cash. I realize that I will have to pay a lot more in a few years vs. now but I just wouldn't have enough cash without liquidating my 401k.

 

[Johnny]

I sent you a DM if I can get the Escribano you used. So that Escribano got your tax ID # for you? Did you have to do anything at all for that or go to the tax office? I think it's called AFIP? Thanks for that website. I will read it in detail.

Yes the Escribano/lawyer got my tax ID number for both me and my wife. We were in the USA and we did everything remotely. I hired @BuySellBA and they took care of everything for us. The lawyer just emailed us a power of attorney so she could get my CDI number. She got it for both me and my wife and we never had to go to Buenos Aires. I think it took about a week. I did fly down to Buenos Aires to check out the property but then the company I hired signed the paperwork for me and will close for both of us.

Only important note is that I can't use my Escribano for the closing. I bought in a new construction and have to use the builder's Escribano. But my lawyer knows them well so all good.

 

[Wally]

I am in the process of buying an apartment in Buenos Aires. It is a frustrating process here! I contacted a realtor to show me some possible listings while I was in town. I was only in town one week but I thought I would be able to see all the apartments that I had on my list. But I only saw 2 apartments the entire time I was there. The process is totally different than buying in the States. I was surprised.

It seems like everything here is not efficient and they don't really have open houses. On some visits I had an appointment and then the owner cancelled the showing at the last minute. Some others the realtor that I was going to use never could set up showings so then I contacted the listings on Zonaprop directly and managed to see one of them. Now that realtor said I had to use them if I bought that property since my realtor could not attend. And now my realtor is angry at me.

Totally inefficient process here. I know I will have to pay a 4% realtors fee as all the listings had that fee but if I have my own agent do they split that with another listing agent?

Any other important advice anyone can give when buying here?

That is one thing I never want to do again. When I bought my place here I must have had the most incompetent seller and seller's agent in BA. Luckily I had a good buyer's agent that wrote the offer up. I bought a long time ago. I am not sure if anything has changed. But when I was making my offer, I had to leave $5,000 USD down payment when they were writing up the offer. My agent wrote up the offer and then handed the cash over to the seller's agent.

I offered slightly lower than the asking price. The seller's agent said they rejected the offer and tried to get me to pay the asking price. It was about $25,000 more but finances were tight and I still had to furnish the place so I said no. My realtor tried to get the money back and they were delaying it and said the manager of the office was out of town. I ended up making another offer on a different property.

They kept delaying the refund of my $5,000 deposit. It turns out that the seller's agent was shady. The owner did accept my offer but he was trying to push the price higher and got caught. I already found something else and didn't buy that unit. And my agent got back that $5,000 but I can't imagine the games one would have to deal with if you're using the seller's agent.

Also never use a lawyer recommended by a realtor. Just research and find your own Escribano so everyone is independent.

 

[tootsi]

That is one thing I never want to do again. When I bought my place here I must have had the most incompetent seller and seller's agent in BA. Luckily I had a good buyer's agent that wrote the offer up. I bought a long time ago. I am not sure if anything has changed. But when I was making my offer, I had to leave $5,000 USD down payment when they were writing up the offer. My agent wrote up the offer and then handed the cash over to the seller's agent.

I offered slightly lower than the asking price. The seller's agent said they rejected the offer and tried to get me to pay the asking price. It was about $25,000 more but finances were tight and I still had to furnish the place so I said no. My realtor tried to get the money back and they were delaying it and said the manager of the office was out of town. I ended up making another offer on a different property.

They kept delaying the refund of my $5,000 deposit. It turns out that the seller's agent was shady. The owner did accept my offer but he was trying to push the price higher and got caught. I already found something else and didn't buy that unit. And my agent got back that $5,000 but I can't imagine the games one would have to deal with if you're using the seller's agent.

Also never use a lawyer recommended by a realtor. Just research and find your own Escribano so everyone is independent.

OMG @Wally! Terrible. I was wondering, why don't the realtor's allow you to talk to the seller? In one property I saw, I wanted to ask the owner some questions about it and the realtor said that was impossible and to just ask them the questions and she would find the answers.

I like the looks of some newer buildings and projects but the downside is many of them are just starting and will take several years to finish. In many buildings that are almost done they are all sold already or they only have units on the lower floor and I want to be higher.

I have a lot of questions but I will research a bit more. Thanks everyone for these helpful posts!

 

[BuySellBA]

OMG @Wally! Terrible. I was wondering, why don't the realtor's allow you to talk to the seller? In one property I saw, I wanted to ask the owner some questions about it and the realtor said that was impossible and to just ask them the questions and she would find the answers.

I like the looks of some newer buildings and projects but the downside is many of them are just starting and will take several years to finish. In many buildings that are almost done they are all sold already or they only have units on the lower floor and I want to be higher.

I have a lot of questions but I will research a bit more. Thanks everyone for these helpful posts!

Lots of great advice and information on this thread. @tootsi, as you figured out, the process is much different here vs. buying in the United States and other first world countries. Typically here, they will never allow you to talk to the seller until you already signed the boleto and paid 30% down payment. That is the point of no return. Realtor's are always worried about you cutting them out of the process and just buying directly with the seller so they don't like you speaking with the seller.

There is a lot of free information on our website that outlines the process to buy real estate in Buenos Aires. Suggest you read it in detail so you understand the process better. Good luck.

BuySellBA

Don't buy real estate in Buenos Aires without knowing all of the laws, ins and outs and all the possible pitfalls.

buysellba.com

 

[Uncle Wong]

Lots of great advice and information on this thread. @tootsi, as you figured out, the process is much different here vs. buying in the United States and other first world countries. Typically here, they will never allow you to talk to the seller until you already signed the boleto and paid 30% down payment. That is the point of no return. Realtor's are always worried about you cutting them out of the process and just buying directly with the seller so they don't like you speaking with the seller.

There is a lot of free information on our website that outlines the process to buy real estate in Buenos Aires. Suggest you read it in detail so you understand the process better. Good luck.

BuySellBA

Don't buy real estate in Buenos Aires without knowing all of the laws, ins and outs and all the possible pitfalls.

buysellba.com

Can two people be listed on a title deed? For example, if I wanted to buy a property with my dad could we both be listed on the property?

 

[Wally]

Can two people be listed on a title deed? For example, if I wanted to buy a property with my dad could we both be listed on the property?

Yes you can have two people on a title deed. I have some friends not related and they purchased together. No issues at all. They both just need to get their tax ID number.

 

[oil rush]

Lots of great advice and information on this thread. @tootsi, as you figured out, the process is much different here vs. buying in the United States and other first world countries. Typically here, they will never allow you to talk to the seller until you already signed the boleto and paid 30% down payment. That is the point of no return. Realtor's are always worried about you cutting them out of the process and just buying directly with the seller so they don't like you speaking with the seller.

There is a lot of free information on our website that outlines the process to buy real estate in Buenos Aires. Suggest you read it in detail so you understand the process better. Good luck.

BuySellBA

Don't buy real estate in Buenos Aires without knowing all of the laws, ins and outs and all the possible pitfalls.

buysellba.com

I am going through the process now of helping an amiga buy a property in CABA. It is a little confusing. Is that 30% down payment always required? I think they call it a boleto. Is that held in a trust account by the lawyer? I have heard conflicting information. The realtor that we talked to said we have to pay that directly to the seller.

 

[earlyretirement]

I am going through the process now of helping an amiga buy a property in CABA. It is a little confusing. Is that 30% down payment always required? I think they call it a boleto. Is that held in a trust account by the lawyer? I have heard conflicting information. The realtor that we talked to said we have to pay that directly to the seller.

Sometimes they skip the boleto if the property is ready to close fairly quickly. But more times than not, they do that intermediary step called the boleto that is 30% down payment. It is NOT held in trust by the Escribano or the realtor. That goes directly to the seller. That is why it is very essential to have a great Escribano/lawyer. They have to check the property in detail. Many times the seller needs the funds to buy something else.

At the boleto, 30% down payment is paid to the seller. If the buyer backs out after that, they will lose that 30%. If the seller tries to back out they have to pay double that 30%. Then the balance of the 70% is paid at the escritura (title deed closing).

Sometimes if the property is able to be closed quickly, they will skip the boleto but will usually ask you to "reinforce" the reserva/down payment and pay more money.

 

[CraigM]

I am in the process of buying an apartment in Buenos Aires. It is a frustrating process here! I contacted a realtor to show me some possible listings while I was in town. I was only in town one week but I thought I would be able to see all the apartments that I had on my list. But I only saw 2 apartments the entire time I was there. The process is totally different than buying in the States. I was surprised.

It seems like everything here is not efficient and they don't really have open houses. On some visits I had an appointment and then the owner cancelled the showing at the last minute. Some others the realtor that I was going to use never could set up showings so then I contacted the listings on Zonaprop directly and managed to see one of them. Now that realtor said I had to use them if I bought that property since my realtor could not attend. And now my realtor is angry at me.

Totally inefficient process here. I know I will have to pay a 4% realtors fee as all the listings had that fee but if I have my own agent do they split that with another listing agent?

Any other important advice anyone can give when buying here?

Feel like I should congratulate you for seeing two properties, I was there 10 days and saw none

Like Johnny we decided to look at new developments through @BuySellBA. They are excellent communicators, as are the people they've recommended so far.

 

[oil rush]

Sometimes they skip the boleto if the property is ready to close fairly quickly. But more times than not, they do that intermediary step called the boleto that is 30% down payment. It is NOT held in trust by the Escribano or the realtor. That goes directly to the seller. That is why it is very essential to have a great Escribano/lawyer. They have to check the property in detail. Many times the seller needs the funds to buy something else.

At the boleto, 30% down payment is paid to the seller. If the buyer backs out after that, they will lose that 30%. If the seller tries to back out they have to pay double that 30%. Then the balance of the 70% is paid at the escritura (title deed closing).

Sometimes if the property is able to be closed quickly, they will skip the boleto but will usually ask you to "reinforce" the reserva/down payment and pay more money.

Thanks for the info about the boleto. Wow, didn't know there was no escrow and the funds go directly to the seller. Now I understand why it's so important to have a good lawyer. I have read a lot of misinformation online on different forums so it is good to get good information. I heard that some locals take advantage of foreigners that don't understand the process.

Feel like I should congratulate you for seeing two properties, I was there 10 days and saw none

Like Johnny we decided to look at new developments through @BuySellBA. They are excellent communicators, as are the people they've recommended so far.

@CraigM I know how you feel. I was in town last week and I sent a list of possibilities to my friend and between the sellers or their agents we only saw a few. New construction would be an option but my friend needs something move in ready as she has a daughter. If we had more time then new construction would be a great option.

 

[Digital Nomad]

Feel like I should congratulate you for seeing two properties, I was there 10 days and saw none

Like Johnny we decided to look at new developments through @BuySellBA. They are excellent communicators, as are the people they've recommended so far.

Wow after reading your trip reports I'm not sure how you fit it all in! Your trip reports were awesome.