How do brokers negotiate the purchase price?

  • Erstellt am 2019-02-20 15:05:56

Steven

2020-04-22 09:02:59
  • #1

Hello Pinkiponk

My post is not meant to be universally valid. That's just how I experienced it. And the broker associated with the financing bank knows your financial situation exactly and understands how much pressure there is.
The broker I am satisfied with and always continue to recommend had placed an ad, through which I became aware of him (quoted from memory): We have no waiting buyers, we do not buy the property ourselves, we have to search just like you, but we have experience and we try..." I liked that and it fit afterwards.

Steven
 

Tolentino

2020-04-22 11:40:40
  • #2
Real estate agents have (perhaps rightly) a very bad reputation.
My experiences here are ambivalent.
As a tenant, I consistently had bad experiences. It seemed to me as if their only job was to upload a few poor photos to the relevant portals, slap in a standard description, and then send a trainee or intern to viewings with 30+ applicants.
Then the one with the best credit score is selected, and the commission (at that time still paid by the tenant!) is collected.
When buying my condominium, it was little better. A few more questions were answered and from the seller’s side a bit of "project management" was done.
Financing confirmation was requested from me, appointments with the notary and seller were organized, etc.
Since it was a developer property, not even an on-site viewing had to be conducted.

Now, recently when buying the plot, I have to say we ended up with a pretty clever agent who definitely put a lot of work and time into it.
- Viewing(s)
- many questions clarified in advance
- fended off competition (seller’s son-in-law wanted to sell himself)
- obtained quotes (surveyor and demolition) or enabled access for demolition companies
- organized appointments with notary and seller
- tips regarding financing (which ultimately was not chosen, but he was very committed)
- recommended GÜ (which it became here as well)

From the buyer’s perspective, he put quite a lot of pressure on me, so I’m actually not 100% satisfied. It was always said in advance that there were several interested parties (which was probably true, at least entirely plausible in Berlin). At the viewing appointment, I was then told that one had already made a higher offer and I would have to top it, but I would ultimately be preferred because I supposedly fit better with the backyard family (who were already set).
So I went a bit higher than the new offer. In the end, I don’t know if the story was true, but I found it plausible and I did feel a bit flattered because I was told that the sympathy was simply right with me. Afterwards, during the selection of the construction company and financing, I was put under a lot of pressure, with thinly veiled threats that there were still three other interested parties on standby. I briefly considered quitting everything, but I was just too much in love with the plot.

But from the seller’s perspective (and he was the one who hired him), he certainly did a good job. That I am now paying him leaves a slightly sour aftertaste, but ultimately it doesn’t matter because the sale price dropped exactly by his commission (the exposé was still listed as commission-free).

It should also be said that it probably depends heavily on how the market looks. In Berlin, agents/sellers definitely hold the upper hand compared to buyers. In most cases, as a buyer, you basically never negotiate downwards. Instead, you increase with the other interested parties upwards.

So if I ever sell one of my properties, I would consider whether to hire him for it. However, not necessarily on an exclusive basis (then the question would be whether he would be as committed).
In any case, but for a maximum of 1 year.

A bit more on the subject:
To protect themselves against possible agreements between buyer and seller, agents also secure themselves additionally. So besides the exclusive contract with the seller, they usually have the buyer sign a contract before sending the complete exposé, which obliges to pay commission in case the notarized purchase contract is concluded.

Best regards

Tolentino
 

Pascali

2020-04-24 02:58:31
  • #3
How long does such a brokerage contract run? If you let it run for 3 months now and extend it if necessary, then in many cases it can make sense to let the contract expire and save many thousands of euros in brokerage fees.
 

nordanney

2020-04-24 07:21:27
  • #4
At least half a year, usually longer.
 

HilfeHilfe

2020-04-24 08:02:40
  • #5
I also don’t like brokers, but I also don’t like it when a service has been provided and then people trick to avoid paying the commission. There have been several sellers who marketed the house "in parallel."
 

Steven

2020-04-24 08:07:16
  • #6
Hello

A brokerage contract runs for a specific period. 6 months, 1 year, 2 years, as desired. But, when the brokerage contract expires, the broker will write to you, (is usually regulated in the contract) that he has submitted the following applicants for the property. Then the names come. If one of these clients purchases the property after the contract expires, the commission is due. Brokers also do not like to be taken advantage of.

Steven
 

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