What a reputable real estate agent can do for you
The decision to hire a real estate agent is very individual, but in most cases it is definitely worthwhile and therefore the right choice. Anyone who wants to sell their house or condominium should definitely consider hiring a real estate agent for a number of reasons. Here are the most important reasons for hiring a real estate agent in detail and in an informative manner:
Real estate agent and brokerage agreement
The decision of whether to sell a property—whether a single-family home or a condominium—on your own or to entrust the sale to a reputable real estate agent should not be taken lightly. There are many factors that should be weighed and considered. We would like to provide you with an overview here:
The brokerage agreement
If you have decided to sell your property with a real estate agent, this will be done on the basis of a so-called brokerage agreement. This agreement sets out all rights and obligations as well as the terms and conditions and duration in a binding manner. The brokerage agreement forms the basis of the cooperation and should be carefully reviewed by the seller before signing. The following contract contents should be included:
Duration:
The basic term of the brokerage agreement must be specified. The agreement generally ends upon fulfillment, i.e., the sale of the property. This is often equated with the date on which both parties signed the purchase agreement at the notary's office.
Brokerage fee:
The remuneration that the real estate agent receives for his services, i.e. brokering the property, is also a minimum criterion of a brokerage contract. Real estate agents are usually remunerated exclusively on a performance basis. Any marketing services commissioned by real estate agents are usually carried out at their own expense. In some cases, real estate agents charge a marketing fee in advance in addition to the actual brokerage fee. This is not necessarily a deal-breaker, but the percentage commission should then be lower than the usual amount payable, as the real estate agent is sharing part of the risk with you.
Exclusivity:
Furthermore, there are regulations governing how exclusively a real estate agent may market your property. It is possible to agree not to grant exclusivity, which means that you are essentially free to market the property yourself and simultaneously commission other agents to sell it. Then there is the so-called sole agency agreement, whereby only one real estate agent is permitted to offer the property for sale. However, with an exclusive contract, you may also search for a suitable buyer within your own network, among friends, family, and neighbors. If you find someone to purchase your property, the real estate agent will not receive a commission. The most common form is the qualified exclusive contract. With this type of contract, all inquiries are handled by the real estate agent. You are generally allowed to search for a buyer yourself, but you must then forward the contact details to the real estate agent. The agent will then conduct the property viewing and carry out the next steps in the sales process. The big advantage of a qualified exclusive contract is that the real estate agent can be sure that they will receive their commission once a buyer has been found. This makes many real estate agents more willing to invest heavily in marketing. Marketing activities can accelerate the marketing of the property. We advise against commissioning several real estate agents to market your property at the same time. In principle, the more service providers offer the property, the faster the marketing could be. However, if your property is offered multiple times with different images and texts, this could lead to confusion among interested parties. As a result, the property will receive fewer inquiries. This may even affect the price in the end. Therefore, you should commission one real estate agent. However, always stay on the ball and check with the real estate agent of your choice to see how the marketing of your property is progressing.
Scope of services:
Good brokerage agreements also include a detailed list of the services offered. It should also be stated that, in addition to pure brokerage, they also provide the listed marketing services.
Cancellation options:
An important point to consider is the possibility of terminating a brokerage agreement. Selling a property is not something that can be done in a day. Your circumstances may change in the meantime. If, for example, you no longer wish to sell or are dissatisfied with the services provided by the real estate agent, it should be clear how the agreement can be terminated. It will also be stipulated under what circumstances the brokerage fee or part of it may have to be paid. This is the case if, for example, the real estate agent has already commissioned a photo shoot of the property and has already invested a lot of time in marketing it. If you want to terminate a contract, the reasons are secondary; all these points are clearly stipulated in a good brokerage contract.
Real estate valuation:
The biggest and most crucial question when selling a property is how high the purchase price will be. In principle, there are ways and means online to determine a rough price or price estimate using property valuation tools and tables. However, these calculators often give a price range of more than €100,000 in some cases. Tables reflect the past and not current market price developments. Furthermore, every property is unique. In some neighborhoods, the side of the street can determine whether the same house is worth €50,000 more or less. The fixtures and fittings can also make a significant difference to the price. All these factors must be taken into account when determining the purchase price. Real estate agents evaluate properties every day and have a good sense, usually based on gut feeling and daily work experience, of the direction in which the purchase price of a property is moving.
Marketing materials:
In order to sell your property at the highest possible price, it is important to present it in the best possible light and as comprehensively as possible. A good real estate agent will therefore create comprehensive, high-quality marketing material for your property. High-quality images, floor plans, location descriptions, energy information, and equipment texts form the basis for the exposé and online advertisements. But beyond that, very good real estate agents also stand out by offering additional tools in their marketing portfolio. In addition to drone photography, these can include home staging (professional preparation of rooms in a property) and 360° tours.
Document summary:
In addition to presenting your property in the best possible light, good real estate agents also compile all relevant documents relating to a property. Property-specific documents are usually stored in different locations: the building authority keeps records on the building and its use or conversion and extension options, online platforms provide the development plan, and the property management company for a condominium has the declaration of division, the energy performance certificate, and other documents. The current owner has insurance data, maintenance fee statements, the energy performance certificate for single-family homes, and much more. All these documents must be compiled so that the new owners also have all the documents available when purchasing your property. If a property is to be financed with a loan, the bank also needs most of these documents to review your loan application. Therefore, excellent real estate agents are characterized by having all documents available when a property is first marketed.
Marketing:
Online portals, newspapers, social media channels, and, above all, the real estate agent's own search customer base are the most common marketing channels for real estate. In addition to publishing sales advertisements, real estate agents play another important role: they answer inquiries and questions from interested parties, send them the property description and other documents if they are interested, and arrange viewing appointments.
Visits:
Planning property viewings requires skill. Very good real estate agents only conduct individual viewings with potential buyers and take enough time to present the property comprehensively and answer all questions. After a viewing, further documentation is usually provided. After the viewing, a good real estate agent will follow up by phone and email to see if there is still interest.
Selection of interested parties:
Gibt es einen oder mehrere Interessenten für eine Immobilie, muss geprüft werden, welcher am besten ist. Gibt es beispielsweise Interessenten, welche bereits eine positive Finanzierungszusage vorweisen können, können diese höher bewertet werden. Es ist bereits absehbarer, dass der Verkauf komplett abgewickelt werden kann.
Price negotiation:
Real estate agents have a wealth of experience from daily price negotiations. They should therefore be aware of the seller's room for maneuver, if any, and confidently conduct any price negotiations with potential buyers in your best interests. Since real estate agents have no emotional attachment to the property and have many years of experience, they can often act more diplomatically and effectively in negotiations than two private individuals. Thanks to their negotiating skills, real estate agents can offer you significant added value, as this usually results in substantial price differences.
Preparation of the purchase agreement:
The purchase agreement itself is drawn up by the notary, which means that a professional is already involved. Since the real estate agent knows both parties to the contract and the building, they are often a great help in drawing up the purchase agreement. The notary receives all the necessary information directly from the real estate agent, which means that the purchase agreement can be drawn up more quickly.
Handover:
The final service provided by a real estate agent is the handover of the property. Often, the real estate agent, seller, and buyer will walk through all the rooms of the property together to check that they are in the agreed condition. Any defects are documented. Together, they read all the meters, such as gas, water, and electricity. The handover is recorded in a handover report and the original documents, such as the declaration of division or the energy performance certificate, are handed over to the buyer. Finally, the buyer receives all the keys, which completes the handover and ends the real estate agent's work. However, even now, dedicated real estate agents are still available to answer their clients' questions.
Conclusion:
In our opinion, it is almost always worthwhile to sell your apartment or house with a good real estate agent. Real estate agents are professionals in this business and know the process from A to Z. In addition, they take a lot of work off your hands and, above all, support you in determining the purchase price and selecting interested parties. But this is precisely where it pays to compare. There are tens of thousands of real estate agents throughout Germany, and as with any service, the quality varies. It is worth comparing, even if a real estate agent has their price, you will have more time to sell and at the same time you may achieve a higher price than you would have expected.
All information has been compiled to the best of our knowledge. However, we cannot accept liability for the details.
