Who should pay the broker (realtor)? Tenant or tenant? Owner or Buyer? At the current moment, in accordance with the current rental law, it is paid by the one who used the service. However, from December 23, a new decree comes into force. What will change for residents of the country who are looking for housing?
Finding a new comfortable home is a lot of time and nerves. If you want to reduce your search time and get rid of stress, you can hire a broker. From December 23rd, its services will be cheaper for the buyer or landlord. From the end of December, everyone who decides to hire a broker must pay at least half the cost of the service, according to the Federal Ministry of Justice and Consumer Protection. Sellers now have to pay the real estate agent costs as well.
Another innovation is that in the future an agreement with a broker will need to be concluded in writing – an oral agreement will not be enough. And the commission is charged only at the conclusion of the purchase and sale agreement. In the future, the buyer will not need to pay his share of the payment until the seller confirms the amount he paid. “This means that soon the real estate seller will no longer be able to push the entire commission value onto the buyer.”
Broker cost sharing is financial support for property buyers, especially in cities and regions where house and apartment prices have skyrocketed. Since the broker’s payment depends on the purchase price, buying a home worth hundreds of thousands of euros means broker costs of tens of thousands of euros. Brokerage fees vary by state and can be up to 7.14% of the value of the property, including VAT.
Buyers of real estate in Berlin, Brandenburg, Bremen, Hamburg, Hesse, Munich and some other regions should especially appreciate the innovation. Until now, the cost of the broker has been paid by the buyers.
Experts fear that homeowners will simply levy the amount they have to pay to the broker on the value of the home to avoid losses. Thus, a law designed to alleviate the situation with the purchase of real estate will lead to its further rise in price.
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