Working with an estate agency makes it possible to sell or buy a flat profitably, thanks to the knowledge and experience of the agent. Of course, the assistance needs to be paid for, and the payment terms should be described in a relevant contract. How do you make payment to the estate agency?
Everyone knows that an estate agency receives commissions for its efforts to help you buy or sell a property most profitably. Their scope varies depending on which party to the transaction uses the agent's services. If it's the seller, the estate agency is responsible for, among other things: arranging a professional photo shoot, editing the ad in such a way as to encourage people to view the flat, and then publishing it in newspapers and advertising services. This also includes commissioning a promotional banner to hang on the façade of the building and finally showing the property to those interested in buying.
The agent also takes care of the administrative formalities involved in selling a flat or house.
When a buyer has hired an estate agency, it is responsible for finding a flat that suits the client's needs, showcasing it and getting the best possible purchase price. The buyer is paying for the experience and knowledge to deal with the formalities associated with the flat and the negotiating skills to knock down the price. The client outlines their requirements for the property and saves the time that would have been lost viewing those that do not meet their criteria.
Payment for estate agency services can be settled according to different rules. To date, it is common for an estate agent to charge two commissions from both the seller and the buyer. However, this leads to conflicts of interest and is increasingly regarded as unethical.
At Home Asset, we've adopted a model where we only take a commission from the party we represent. Our basic principle is to represent only one party to the transaction. When we work with a seller, the seller pays for activities to promote the flat and get the highest possible price. When we are on the buyer's side, the buyer pays us a fee for securing the lowest possible purchase price. The property seller then pays us nothing because no contract binds us.
We are against double commissions, i.e. situations where both the seller and the buyer pay. We believe that in a transaction carried out in this way, the agency does not look after the interests of either party and, in addition, finds itself at the heart of a conflict of interest. The seller wants to uphold the offered price, and the buyer wants to reduce it as much as possible. Both parties pay a commission to the same agent, so it is unclear whose case is to be fought more intensively.
The assistance of an estate agency can be of great benefit, for which a predetermined commission is due. However, the rules on its payment should be clearly defined and designed so that it does not harm the client's interests.