Key Takeaways
- A good real estate agent can make the process of selling a property quick and straightforward.
- Real estate agents can help you find the right property price, negotiate the sales price on your behalf, and handle buyer inquiries.
- Real estate agents are expensive, typically charging around 3.57% of the property’s sales price.
- The property cost for the buyer increases if you sell it via a real estate agent. This has an impact on the overall sales price of the property.
This is how you do it
- First, learn the process of selling a property in Germany. Once you know the process, you can decide whether to do it yourself or require professional support.
- Contact several real estate agents before choosing one.
- Review the brokerage contract with the real estate agent and clarify any doubts.
Table of Contents
Should you sell the property with the help of a real estate agent?
You should first learn the steps involved in selling a property in Germany before deciding whether you should hire a real estate agent.
Suppose you know the process of selling a property in Germany. In this case, you can weigh the pros and cons of hiring a real estate agent.
Advantages of selling a property with a real estate agent
A good real estate agent does the following for you.
- Appraise and determine the asking price of the property.
- Homestage your property to make it look attractive and fetch the best price.
- Click professional photos, create 3D videos, etc., and prepare an eye-catching exposé for your property.
- Promote your property through the proper channels, such as online listings, newspaper ads, and their own network.
- Collect and prepare all the property documents on your behalf. You must give them power of attorney to arrange the documents on your behalf.
- Communicate with the prospective buyers and schedule viewing appointments.
- Negotiate the sales price on your behalf. A good real estate agent can better judge the market and involve interested buyers in a bidding war.
- Hand over the property on your behalf.
In short, a real estate agent is with you throughout the property-selling process. This could save you a lot of time and headaches while ensuring you get the best price.
However, there are certain things you must be aware of before hiring a real estate agent.
Disadvantages of Hiring a Real Estate Agent
- A broker charges a hefty fee for their services. The broker’s fee is a percentage of the property’s sale price. It can go up to 7.14% of the property price. Both seller and buyer share this cost equally (since Dec. 2020). This means you’ll pay around 3.57% of your property price to your real estate agent.
- Real estate agents get paid only if the property is sold. It’s a double-edged sword. This condition motivates real estate agents to sell your property quickly. However, at the same time, it may lead real estate agents to push the sale even if the current offer is not the best for you. Therefore, it is essential to work with a reputable real estate agent who has positive reviews.
- Many buyers prefer to buy properties that are sold privately. The reason is that they save 3.57% of the property purchase price.
NOTE: Whether to sell a property or not is your decision even if you hire a real estate agent. You can always say no to a particular offer.
Conclusion
Hiring a real estate agent makes sense if
- you don’t have the time to sell the property yourself,
- you don’t live in the city where your property is,
- you want to sell the property fast,
- you don’t mind paying the real estate broker’s fee, and
- you want a professional to coordinate everything on your behalf.
You can find English-speaking real estate agents here.
What should you consider when hiring an independent real estate broker?
As a general rule, contact several real estate agents and discuss the following with them:
- What is the real estate agent’s experience in your local area? Can they provide references for previous clients they represented?
- How does the agent value the property?
- How does the real estate agent plan to market the property?
- What are the key points of the real estate agent’s brokerage agreement? You must pay special attention to the real estate agent’s brokerage agreement. More on it later in this guide.
These questions will help you choose the real estate broker that best fits your needs.
NOTE: Ensure the real estate agent is a member of IVD (Immobilienverband Deutschland). IVD Membership is a key quality indicator.
To become an IVD member, the broker must
- demonstrate professional expertise,
- comply with the professional and competitive rules, and
- educate themselves continuously.
You can look for an IVD logo on the real estate agent’s website to check if they are a member. You can also search for their name in the IVD directory here.
What should you check in the real estate agent’s brokerage contract?
Like any contract in Germany, a brokerage agreement must be concluded in writing. Review the following points in the contract.
- Check the duration for which the contract is valid. By when can you terminate the contract? Our tip is not to commit to a real estate agent for too long. You should give the broker three to six months to sell the property. If they can’t sell the property within the given time, reevaluate your situation.
- Can you hire other brokers at the same time, or are you forming an exclusive contract with the real estate agent? Usually, real estate agents work under an exclusive contract. Thus, ensure you hire someone you can trust.
- Do you contractually waive self-marketing and refer interested buyers to the broker in all cases? Before signing the contract, clarify how you want to process the purchase offers from neighbors and friends. Do their inquiries (subject to commission) also go through the agent? If you hire an agent, it’s best to let them handle all leads. You can also spread the word that you are selling the property in your network. Suppose you see strong interest from your neighbors or friends. In this case, you don’t need an agent.
- How much is the real estate agent’s commission? When is it due? You can negotiate the broker’s commission. However, don’t expect much. The real estate market is a close network. No one wants to charge lower than the current market rate.
Are there alternatives to independent real estate agents in Germany?
Yes, there are two alternatives to independent real estate agents in Germany.
- Online realtors / realtor platforms (Online-Maklern und Makler-Plattformen)
- Real estate companies of banks and building societies
Let’s check how they differ from independent real estate brokers.
Online realtors and realtor platforms
Online realtor platforms have partnered with local independent real estate agents all across Germany. Here is what they offer.
- A digital platform for real estate brokers to simplify the administrative work.
- As a seller, you can create an account and submit your inquiry to sell a property.
- One of their real estate agent will contact you and evaluate the property for free.
- If you find the evaluation report good, you can hire them.
- The online platform will handle taking the photographs and listing your property on major real estate portals.
- The real estate agent of the platform will handle the property sales process as any other independent real estate agent would.
You pay the same brokerage fee (3.57% of the property price) as you’ll pay to an independent real estate agent. The online platform keeps part of the brokerage fee and pays the rest to its partner real estate agent.
One of the benefits of online realtor platforms is their massive database of potential buyers. This can expedite your sales process.
However, online realtors lack local expertise. Although they have partnered with local real estate agents, there’s no guarantee that it’s the best agent in your area. This is especially the case if you are selling properties in rural or lesser-known towns.
Here are two major online realtors in Germany.
- Homeday
- McMakler
Real estate companies of banks and building societies
Many German banks have their own real estate companies. They work similarly to the online realtors.
Some of the major banks that offer this service are:
The quality of the service largely depends on the real estate agent assigned by the bank. So, do the same due diligence before signing up with a bank as you would with an independent real estate agent.
Ultimately, you work with a real estate agent and pay the same fee. Thus, it’s best to find a real estate agent you can trust.
You can find English-speaking real estate agents here. ->
