12 things your Real Estate Agent should be doing to earn their commission
1. Your agent should talk with you about your needs
Whenever a potential buyer requests information about a property, quite often all that they receive is a rudimentary email including a brochure and some basic information. There’s no phone call, and no interest in your actual needs. Sure, receiving the information for which you asked is important, but what an agent should actually do is pick up the phone and call you to ask about what you really need. Not only the basic requirement like size, the number of rooms, location, and your budget, but truly understanding why you want to buy an apartment or house in Berlin, what you actually like and dislike, and your daily living needs are very important in helping you find the property that you will love. Perhaps you have a young family and need the extra space to grow? Maybe you work from home so you need a corner office with plenty of natural light? You have a dog and want to live next to a park? Everyone is different and, without understanding your real needs, your agent will not be able to find you your dream home.
2. Your agent should search for the right property for you, beyond what you have requested
Maybe you found them through a listing, and perhaps you requested a specific property, but your agent’s work should not stop there. After speaking with you on the phone, your agent should look through their entire portfolio to find something that might suit your needs. And beyond that, they should consider whether any of their partner agencies have properties that match your criteria. In order to earn a commission, your agent should be in constant search for you, even months after your request and, as soon as they find something appropriate, you should receive a call.
3. Your agent should know the properties that they are selling
What is the square meterage? What is the exposure like? How much are the Strata and maintenance costs? Is there a basement attached to the property? This is the kind of basic information that your agent should have at their fingertips. Beware the agent who is either not interested enough in their properties to know them inside out, or not interested enough in their clients to ensure you know this without even having to ask!
4. Your agent should always be available, whenever you need them
Including on weekends and after office hours. Free time, what free time? Your agent should appreciate that you have a work schedule around which their work schedule revolves.
5. Your agent should recommend the right mortgage broker to you
Most people buy an apartment or house with the help of a mortgage, but most of these people only apply to their own bank for one, and are unaware of the mortgage brokers and financial consultants who are willing to assist them at no extra cost. These brokers and consultants have connections with all the major German banks and financial institutions that provide financing. In some cases, for example if you are not a German resident, securing a mortgage can be tricky but, with the help of a professional, this task can be simplified, and it will cost you nothing! Your real estate agent should recommend to you the services of a reliable German- or English-speaking mortgage broker or consultant.
6. Your agent should consult you on the purchasing process and costs
Buying real estate can be a complicated process. It seems obvious but when I bought my apartment in 2013 my real estate agent did not think it necessary to explain to me the purchasing process, nor outline the additional costs to expect. Your real estate agent should explain the purchasing costs to you, and guide you through the process in such a way that you are comfortable, happy, and well-informed at every step.
7. Your agent should negotiate conditions of the purchase with the seller
It is the job of your agent to fight for you interests. Currently, the Berlin real estate market is a seller’s market, so the purchasing price for property is usually non-negotiable. However, there are other purchasing conditions which can be negotiated in your favour. These include when payments are due, when the seller or their tenant will vacate the property, and what, if any, built in furniture or kitchen will remain. Your real estate agent must earn their commission by representing your interests in negotiations with the seller.
8. Your agent should show you around the neighbourhood
Anyone can open the door to an apartment and show you where the bathroom is. Your real estate agent should earn their commission by having and sharing intimate knowledge of the neighbourhoods in which they have property on offer. Where are the closest markets? What are the restaurants and cafes nearby, and which would they recommend? How many schools are in the surrounding area, and what are their reputations? They should be your local guide, helping you to experience the neighbourhood as if you were a local.
9. Your agent should recommend to you a lawyer, tax advisor, or translator should you need one
Buying property in Berlin as a foreigner can seem difficult. A lot of foreign buyers purchase property with the assistance of a lawyer, who proofs their contracts and, quite often, even represents them at notary office meetings. Many non-German residents also have questions regarding local taxation law, and how buying an apartment in Germany affects their tax status. Your real estate agent should recommend to you the right professionals to help you through the purchasing process.
10. Your agent should be able to answer questions about the purchasing contract and assist you at the notary appointment
By law, real estate agents cannot provide legal advice, however, they should be able to answer basic questions related to your real estate purchase. They should also join you at your appointment to sign the purchasing contract at the notary office.
11. Your agent should be honest and straightforward with you
If something isn’t working out during your real estate search, you should feel comfortable in your relationship to be able to point it out to your agent. Then, ideally, you should be able to together find a solution to any problem.
12. Your agent should do after sale service
Your real estate agent should be available for anything you need after the purchase of the property has been completed. They should answer any questions you have about invoices and payments, organise the key handover and, if you have just bought a new construction, should update you on the building process – including sending you photos –, and take you on a tour of the construction site if you wish.
These are the 12 things your real estate agent should be doing for you in order to earn their commission. Don’t forget, if you feel that you are not receiving the service you deserve, you can always find a new agent.
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