What could the effects on the brokerage fee look like?

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What could the effects on the brokerage fee look like?

The realtor market is currently quite confusing when it comes to the question of how high the brokerage fees are when buying a home and which party pays them. When private owners want to sell their house or apartment, there are two common alternatives:

1. The buyer pays the commission alone or

2. Both the seller and the buyer pay commission.

In total, the net commission is usually 5 to 6 percent of the sales price. Taking 19 percent sales tax into account, this results in a broker’s commission of 5.95 to 7.14 percent. So far there are no legal regulations regarding the amount or the distribution of the commission – ultimately the cost burden for buyers and sellers also depends on their negotiating skills.

If the buyer principle were to be applied to property purchases, then the decision on how the commission would be divided would be in the hands of the legislature: If a homeowner hires an agent to sell his home, he would have to pay the broker’s commission in full.

Even without legal requirements, the customer principle is customary in the market today when buying apartments or houses from the property developer. If these are brokered by a broker, he usually receives a so-called “internal commission” from the developer and waives the charging of an additional brokerage fee to the buyer.

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