A real estate agent is the person who mediates between the property owner and interested parties in a real estate sale. Real estate agents advise both parties equally and are obliged to neutrality.
But what are the actual duties of a real estate agent?
Real estate agents can be a great help to both property owners and property seekers. They are experts in their field and know how to market your property at the best possible price or where to look for your dream property. They are available to provide you with professional advice and property value assessment.
If you are looking for a home, you can discuss your requirements, wishes and price ideas of a property with the assigned real estate agent in an appointment. He will then start looking for the best possible offer for you and arrange viewing appointments after consultation.
If you are the owner and are planning to sell your property, you too can send all the necessary documents and your price expectations to the real estate agent so that he can advertise and market your property. For this purpose, he can create a graphically and content-wise appealing exposé, which he advertises on his website or in online & offline ads.
In both cases, the real estate agent can bring seller and buyer together, arrange viewing appointments and conduct purchase price negotiations.
When is it worth hiring a real estate agent?
Real estate agents are very familiar with the regional real estate market. So if you are not familiar with real estate but are looking to buy/sell property, a real estate agent is recommended. Due to the trained know-how, the expert can pick out realistic offers according to your wishes, arrange viewing appointments as well as take over negotiations for you. This saves a lot of time and is very effective, so you can usually achieve a higher purchase price.
What is commission?
Commission refers to the performance-based remuneration of real estate agents. Consequently, the fee that is paid out due to a successful mediation between owner and buyer. The amount of the commission is contractually fixed beforehand and applies to both buyer and seller in the same amount. In the real estate industry, the commission is often referred to as a brokerage fee.
Who pays the commission?
When it comes to paying the commission, the question often arises as to which party pays the real estate agent. In order to split the payment evenly, the split brokerage commission (commission split) was introduced in 2020 for properties for sale, as long as the parties are private individuals. In this way, the party who hired the real estate agent cannot transfer the entire cost to the other party and also bears half of the commission costs incurred in the event of sale. The amount of the commission is freely negotiable, but usually ranges from a total of 3% to 6% of the agreed purchase price.