Buying real estate through an intermediary
To put their house or apartment up for sale, individuals have the choice between doing everything themselves from individual to individual, using certain paid services to help them sell alone, or entrusting the entire sale to a professional. This will mostly be at a real estate agency, an agent, or a notary. read more
The commission to be paid to this intermediary is usually paid by the buyer. This adds significant additional costs. Some will tell you that it is the seller who pays them (the fees can be put at the seller’s expense), but in the end it will always be included in the sale price, so it is the same.
ISP: Agency fresh selling price included
In real estate listings, you will find an ISP price for “included agency fees” which, as the name suggests, already takes into account the remuneration of the real estate agent or notary who manages the sale.
Negotiate agency fees
Real estate agencies have several ways of billing for their work:
A fixed commission regardless of the type of property for sale and its price
Agency fees proportional to the purchase price with sometimes a decreasing rate per price bracket. The more expensive the property, the lower the percentage of the costs.
A mix of the two solutions based on the value of the property sold
The real estate agent is free to set his commission as he sees fit. It is only obliged to display its prices clearly on its shop window and on its website in a precise way.
For a buyer, this represents an additional purchase fee of several thousand euros. This is not negligible on the budget and therefore on the overall project. Be aware that it is possible to negotiate real estate agency fees. For seller lead generation you should learn everything.
Advisers at the service of the seller
Even if a real estate agent will tell you that he is there to serve the interests of both parties and fairly advise the buyer as the seller in order to achieve a successful real estate transaction that satisfies everyone.
You will see that in reality, on the ground, we unfortunately quite often find that the real estate agent is at the service of the seller who has kindly entrusted him with his real estate for sale. The seller is free to sign an exclusive mandate so that only this agency can sell this property, but he can also compete with several agencies and try to sell alone at the same time. It all depends on the type of mandate he signs and the contract he is willing to choose.
Thus, even if a real estate professional intervenes and provides advice and experience in the whole process of a real estate purchase, it is necessary to continue to inquire on his side and verify that he is defending the interests of both the buyer and the seller.
This applies both to the negotiation of the price between the buyer and the seller as to the drafting of all the details in the deeds of sale.
Buy without an agency
It is quite possible to fully realize your purchase from individual to particular. It doesn’t change much for the buyer.
Rather, it is the seller who will have much more work to do as we indicate in our article”Sell without real estate agency”.
Be careful though, just because you won’t have to pay an agency fee doesn’t mean you’ll pay less in the end. Some individuals try to inflate their price by including the commission that an agent or notary would have taken. Indeed, it is in human nature that the seller seeks to obtain the best possible price for his apartment or his house. The real estate agent can then act as an intermediary to make a seller understand that his selling price is not realistic compared to the reality of the current local real estate market.
Either way, for a significant number of real estate for sale in real estate listings,you will have no choice. They are only for sale through an intermediary. What should matter to you as a buyer is to buy this accommodation at the right price, regardless of the intermediaries and their commissions.
Check all the same before contacting an agency for a property that interests you, if this property is not also for sale live between individuals because once you have signed a visitor voucher, you will no longer be able to bypass the real estate agent and his commission by dealing directly with the seller.
Finally, also consider taking your own notary. It won’t cost you anything more, but it can be used to verify your buyer’s interests.
Hire a real estate hunter
As a buyer, you also have the option of entrusting your search for a house or apartment to a real estate agency by signing what is called a search warrant.
No time? Not the urge to handle this on your own? You hire a real estate agent to find the property that meets your criteria (location, size, number of rooms, price, etc.). Some agencies specialize in this type of work. This is more about a real estate hunter than an agent.
It is a service that can be useful, even if a little expensive, especially in the sought-after areas where the supply of goods for sale and much below demand.
As a reminder, to properly establish your budget, it is necessary to calculate your borrowing capacity and to take into account the notary fees to be paid for this purchase.