Myth or truth – what a real estate agent can and cannot do (Part 2)
Myth 1: Real estate sales only with a valuation report
Real estate agents are rarely trained experts in property valuation, meaning that an additional valuation report must be obtained at extra cost for the sale of real estate.
This myth is partly true.
When it comes to a simple real estate sale, an appraisal by an expert is not usually necessary. When determining the price and valuation for the planned sale, the real estate agent's sound and regional market knowledge is more important. The valuation also takes into account current competing offers, which consider two aspects: the local demand situation and the classification in comparable transactions. The situation is different if, for example, the determined property value has to be upheld in court. In this case, the focus is not on preparing the property sale. Valuation reports are subject to stricter standards and current circumstances relevant to the case are not taken into account.
When selling real estate, the broker's valuation is often accompanied by an appraisal carried out by the financing banks.
Myth 2: Brokerage contract models are risky
Brokerage contract models can involve a risk. With these models (simple brokerage agreement, exclusive agreement, etc.), clients must pay compensation if the termination or term rules are unclear or if the contract is automatically extended unintentionally.
This myth is partly true.
Compensation obligations can only be imposed on buyers or sellers in the case of a qualified sole agency agreement. However, this contract model is rarely used. If there are ambiguities in the contract, this is at the expense of the broker who drew up the contract.
Myth 3: The broker's services end with the notary appointment
Agents often do not take care of the secure handover of the property. They are also not obliged to do so. This also applies to the clarification of insurance and settlement issues during the change of ownership.
This myth is partly true.
It is true that real estate agents are not obliged to accompany the handover of the property. However, this service is being offered more and more frequently. The clarification of questions regarding billing and insurance are usually excluded from this. 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 get in touch with us. We're happy to help.
Notes
For reasons of better readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as 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 case.
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