Myth or truth - what a broker can and may do (Part 2)

There are many reservations about estate agents and they often persist. They are usually about what an estate agent is (not) allowed to do and what they are capable of. But what is actually true about these myths? We clarify.

Myth 1: Real estate sales only with an appraisal

Estate agents are rarely trained experts in the valuation of real estate, which means that a valuation report must also be obtained for the sale of the property for a fee.

This myth is partly true.

When it comes to a simple property sale, an appraisal by an expert is generally not necessary. What is more important when determining the price and valuation for the planned sale is the estate agent's sound and regional market knowledge. The valuation also takes into account current competitive offers, which take two aspects into account: the local demand situation and the classification in comparable transactions. The situation is different if the determined property value has to stand up in court, for example. In this case, the focus is not on preparing the sale of the property. Valuation reports are subject to stricter standards and current circumstances relevant in practice are not taken into account here.

When selling real estate, the valuation by the estate agent is often accompanied by the appraisal carried out by the financing banks.

Myth 2: Brokerage contract models are risky

Brokerage contract models can be associated with a risk. With the models (simple brokerage contract, sole brokerage contract, etc.), clients must pay compensation if termination or term rules are unclear or if the contract is unintentionally extended automatically.

This myth is partly true.

The buyer or seller can only be liable for damages in the case of a qualified sole mandate. However, this contract model is rarely used. If there are ambiguities in the contract, this is at the expense of the estate agent who drew up the contract.

Myth 3: The broker's service ends with the notary appointment

Estate agents often do not take care of the safe handover of the property. Nor are they obliged to do so. This also applies to the clarification of insurance and billing issues during the change of ownership.

This myth is partly true.

It is true that estate agents are not obliged to accompany the transfer of the property. However, this service is being offered more and more frequently. The clarification of questions regarding settlement and insurance are usually excluded. These issues must be discussed between the buyer and seller.

Do you have questions about buying or selling a property? Or would you like some advice? Then please contact us. We will be happy to assist you.

Notes

For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.

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