SLO
Collaborating with a real estate agent can be crucial for a successful property sale or purchase. However, before signing a contract, it is essential for the client and the agent to clearly agree on all terms of cooperation. Below is a summary of key points worth negotiating:
1. Commission Amount
One of the first topics for discussion is the amount of the brokerage commission, which is usually determined as a percentage of the sale or purchase price. The commission amount can depend on the property’s value, location, and the scope of services.
Suggestion: It is possible to achieve a lower commission with an exclusive contract or for higher-value properties.
2. Services Included in the Commission
Clearly agree on which services are already included in the commission (e.g., advertising, viewings, offer preparation, etc.). This allows for realistic expectations and comparison with other providers.
3. Additional Costs
Discuss any potential additional costs not included in the basic commission, such as:
- preparation of legal documents,
- appraisals by external experts,
- advanced advertising packages.
Suggestion: Agree in advance on the prices of these services and the conditions for ordering them.
4. General Terms and Conditions and Insurance
Request to review the agent’s general terms and conditions and proof of a valid professional liability policy. This insurance policy covers potential damages, with compensation typically paid directly by the insurer.
5. Exclusivity of the Contract
Before entering into a contract, decide whether you will work with a selected (exclusive) agent or choose a non-exclusive form of cooperation, where you can work with multiple agents simultaneously.
Tip: An exclusive contract often means a lower brokerage commission and greater engagement from the selected agent, but it also limits you from seeking other agents.
6. Condition for Entitlement to Payment
The agent is entitled to commission payment only upon the conclusion of a contract with the actual buyer or seller.
Tip: It is advisable to agree in advance that the commission (or part thereof) will be settled only after the completion of all agreed services, such as signing the contract, handover, or registration of the ownership right proposal in the land registry. This ensures that all obligations within the brokerage will actually be fulfilled.
7. Determining the Offer Price
Together with the agent, determine the approximate offer price of the property, which will serve as the basis for advertising and negotiations with potential buyers. The agent should advise based on current market conditions, comparable sales in the area, and the characteristics of your property (location, condition, equipment, etc.).
Tip: Do not set the price too high merely out of a desire for a greater return – a prolonged presence on the market can reduce buyer interest. It is better to start with a realistic price that allows some room for negotiation. If there is no interest, adjust the price promptly.
8. Contract Duration
By law, a brokerage contract can be concluded for a maximum of 9 months.
Tip: Check if the proposed duration suits you, and discuss in advance the possibilities of extending or shortening the term if you wish to conclude cooperation earlier or extend it.
Conclusion
Before signing a contract with an agent, take the time for a thorough discussion of all essential aspects of cooperation. This way, you avoid misunderstandings, ensure transparency, and simplify the entire process. Clearly agreed-upon terms are the foundation for successful, professional, and trustworthy cooperation.
