What exactly do we pay a real estate agent for?
When going to a real estate agency, we usually use the service of searching and presenting offers, as well as showing a specific property. However, this is only part of the work of real estate agencies that is included in the cost of this type of service. So what do we pay the broker for? The work of a real estate office is based on activities aimed at finding a buyer for a property or searching for a property. However, good quality brokerage services, in addition to matching pages and showing real estate, should also offer verification of the legal and actual status of real estate submitted for sale, rent or exchange
The agent’s activities are aimed at ensuring the best interests of the clients with whom he has a contract.
Quality recorded in the contract
The quality of service also results from the type of contract between the client and the agent. With an open contract (the client can sign a contract with many offices), one cannot expect that the broker will be fully involved in the sale of the property. If several or dozens of offices present the same property at the same time, such work does not make sense. In addition, the customer buying is concerned about the avalanche of offers of the same property at different prices and parameters. The same situation applies to clients looking for real estate.
Cooperation on the basis of an exclusive type of contract is more beneficial for both parties – the broker, knowing that he will receive remuneration for his work, is fully involved, undertakes paid advertising campaigns adequate to the type of property, as well as cooperation with other real estate agencies.
Forms of settlement with an intermediary
The agent’s remuneration, in accordance with current market standards, can be determined in the form of a quota or a percentage. The percentage form is more often used because it is largely determined by the sale price. Very often, brokering agreements contain a provision that the contracting authority will pay the broker a specified percentage of the sale price, and not the amount originally agreed in the contract. With the current market situation and falling real estate prices, this is a beneficial solution for the customer.
The commission, according to its definition, is charged for assistance in concluding the transaction. In the case of real estate agencies, it is usually connected with the current trend of paying the agent for the sale of real estate, i.e. dependence on the effect achieved.
The quota range is very wide. Salaries in Warsaw for sales range from 0 percent. up to several percent gross. Knowing that the real estate office is not a non-profit institution, the client should pay attention to where the remuneration is hidden in the case of 0 percent offers. Is the seller paying a higher commission or is the remuneration hidden in another way?
The second source of income broker is the rental of real estate. In the case of rentals, it is customary for offices to charge salaries up to 123 percent. gross one-month rent of rent at one time. The situation is similar to the sale of real estate.
You can negotiate
When choosing a broker, remember that all amounts are usually negotiable, and choosing the cheapest company in the future may be the most expensive purchase or sale. Expenses for buying or renting real estate are often life-long savings, so you should think about whether you should save on the security of your property.