You have decided: you want to sell your property. After some research, you might think that you could manage the sale of your house or apartment in Brussels yourself. After all, it will be a significant saving once the sale is finalized, and it doesn’t seem that complicated…
So, why work with a real estate agency to sell your property? What lies behind the agency’s commission? All our explanations are below.
The Real Estate Agency: a Genuine Service
First and foremost, the real estate agency is there to offer you a genuine service. Sometimes considered a luxury, it will actually save you money during the sale, either by selling your property very quickly or by allowing you to obtain more than the advertised price.
If you have ever had to sell a property, you know perfectly well that everything following the publication of your advertisement can be very time-consuming. Managing numerous calls, answering questions about the property, organizing viewings, but above all, remaining available and dedicating all your free time to it.
The Real Estate Agent: a Sector Specialist
“One does not become a real estate agent by doing a few web searches, just as one does not become a doctor by watching a few tutorials. Availability, as well as commercial and human aspects, are elements you might not have as a private individual. You have your life, your job, and your family to manage, so why add the sale of your property to all of that?” points out Amaury Hermanns, founder of Hermanns Real Estate agency and an experienced real estate agent.
Engaging a real estate agent certainly represents a cost. But ultimately, this choice will save you both money and time. You will have sold your property at a higher price than you initially asked, and you will also have been able to enjoy your family, go on vacation, or simply relax.
Legal Expertise
In addition to the commercial aspect and interaction with prospective buyers, the real estate agent possesses legal knowledge: urban planning, infringements, etc. “This crucial point ensures that the sale will proceed smoothly. If you encounter any issues between the signing of the preliminary agreement and the deed, for example, your real estate agent will be there to find a solution,” explains the real estate specialist.
Real Estate Agent vs. Real Estate Coach
“It is rarely discussed, but the real estate agent is not actually remunerated until the signing of the authentic deed, unlike real estate coaches.” The latter regularly request payment before the mission is concluded. After their involvement, you must then remain available to manage calls, viewings, and numerous questions. In the end, if you do not sell your property, you will have lost money and a lot of time! “The real estate agency, on the other hand, does not charge you anything until the deed is signed,” explains Amaury Hermanns.
Real Estate Agent Remuneration
Costs Inherent to the Sale
“A real estate agency faces numerous costs, even before selling the property it handles. Whether administrative, travel, or marketing expenses to prepare the premises for viewings, these are numerous and represent a relatively high amount,” Amaury Hermanns specifies.
Real Estate Agency Commission
The commission charged by the real estate agency remains a rather taboo subject. However,
it is important to work with full transparency, to establish a
relationship of trust between the owner-seller and the agency in charge of
their property.
Generally, a real estate agency receives a commission of 3% excl. VAT on the sale price. “Some agencies try to attract owner-sellers by telling them they reduce their commission to 0% or 1% excl. VAT, but what they don’t specify in their advertisements is that this is a minimum. Ultimately, the owner sometimes ends up paying a commission of more than 3%, because a reduced rate comes with reduced service.” The latter can, for example, be limited to merely posting the sale advertisement, and if the owner wishes to access other services, they must then pay an additional 3% commission.
What about the Real Estate Agent?
Generally, the real estate agent has every interest in working as an independent contractor. Under this arrangement, they receive between 40% and 50% of the total commission received by the real estate agency following the sale. The remaining 50% to 60% is then divided between the agency’s management fees (offices, travel, advertising, etc.), which amount to approximately 45%, and the remaining amount then represents the profits made by the agency.
In Conclusion
“To think that one will pay a real estate agency 3% of the sale price excl. VAT may seem high for a private individual, but in reality, when considering the time and money saved, this percentage remains low,” concludes Amaury Hermanns. “One must keep in mind the costs already paid by the agency throughout the entire sales process and beyond. Take, for example, the training of real estate agents: to stay abreast of current events and sector developments, the agent must constantly undergo training, and these training courses cost money. They are no longer just a ‘door opener,’ but are simultaneously a sales advisor, accountant, and psychological support.”
Our Advice for Selling your Property
At Hermanns Real Estate, we make it a point of honor to establish a relationship of trust with owner-sellers who engage us for the sale of their property.
We therefore advise you to always choose a real estate agent with whom you feel confident, and who explains clearly and transparently how their remuneration and that of their agency works. Selling your property is not always straightforward, whether practically or emotionally, so surround yourself with trusted individuals.
