Bergman asked this question 7 years, 4 months ago:

The real estate agent fee

Unlike the US, here the real estate agent is paid by the person renting/buying. Has anyone had any experience with telling the landlord and the agent they won't pay the fee? I mean, the agent is working for the owner not the renter.

I'm interested in buying a house, but it's from a website tied up with an agent. I have not signed anything saying I'd pay the fee, nor have I asked the agent to work for me in buying this house I found. The fee is pushing 18k in Euro. I know in other markets in Germany the owners are paying the real estate agents not the buyer/renter...yes I know the cost is probably tied up in the price...but I think it's time the real estate agents in the KMC stop going after the renter/buyer and get their fee from the landlord/owner.

So back to my question. If I haven't agreed to pay the fee and don't, what can the real estate agent do? I plan on making an offer and stating I'm not paying the fee...



7 years, 4 months ago

Very good question. You should consider calling Robert. He'll definitely be able to assist you. Tell Robert that Sam from EverythingKMC sent ya. Robert is a friend of mine, so he'll know I am thinking about him.

http://mitchell-investment.de/
Adolph-Kolping-Platz 5
66849 Landstuhl
Tel: 06371 594 5194

7 years, 4 months ago

You can certainly make an offer and include your desire for the seller to overtake your portion of this fee.

However you need to keep in mind that there is a good chance that the buyer is also already paying a fee! Crazy, yes I know that but it is how many agents work in Germany. Both the buyer and the seller get charged a fee.

Another point that I would like to touch on is that this is not just the KMC. I state this because so many people think they are being taken advantage of but this is a nation wide standard business practice for both buying and renting. You can also go to other parts of Germany where the fee is 5, 7, 8 and 10% of the purchase price for the buyer so dont get too angry with the local agents!

When we put a deal together we try to always negotiate the realtor's fee into the purchase price so as to save the buyer out of pocket expenses.

Good luck and if you have any more questions do not hesitate to ask

7 years, 4 months ago

Yes - I'm very aware of the process and what is "acceptable". It does not mean that I have to like it though. The agents in this area though, should be aware that they are dealing with a very niche market...which I think they know when I see a house in the KA for sale for 399,000.00 listed as a great home ready to move in and then same house online on immoscout for 349,000.00 as a great invest to rent out. Something is not adding up, since I have the buying power I can definitely say I'm not paying the fee or will not pay above a certain percentage.

Yes - in some markets the commission is split between buyer and seller, however I do know in this area it is not...that's why 99% of houses for sale are via an agent. When I listed my house I actually got a call from 3 agents asking if they could list the house as it would not cost me anything extra.

Good news is that the law might be changing and the renter/buyer will not longer be paying the commission. (of course in a purchase the fee will just roll up in the price).

7 years, 4 months ago

No, you absolutely do not have to like it! Your original question is:

"If I haven't agreed to pay the fee and don't, what can the real estate agent do? I plan on making an offer and stating I'm not paying the fee"

If you found the house through that realtor and they advertised that they had a 3.57% fee for the buyer and the realtor can prove that this is how you found the house, you legally are obliged to pay that fee.

If they cannot prove that you found the home through them or their advertisements and you go directly to the seller and buy the property you can get around the realtor fee. If the seller has a contract with the realtor, the realtor can and will be successful in filing a lawsuit against the seller rendering them responsible to pay the buyer's fees that were lost.

Does that make sense?

7 years, 4 months ago

Quote by Robert Mitchell:
......Does that make sense?


Sure does.

5 years, 9 months ago

So I am considering buying a house in the area. The advertisement for the home was on Ramstein Yard Sales from a realtor so obviously I found the home through her advertisement. However the advertisement does not state that their is a real estate finders fee. I often see this on most advertisements, it will state 3.5% fee etc.

I would like to negotiate any fees into the purchase price of the home or split with the seller if possible. I have not made an offer yet. Should I go ahead and ask the realtor up front about the fee prior to the offer or just wait until I make the offer and see what comes up about fees? Any advise from anyone who has been down this road would be helpful.

5 years, 9 months ago

Quote by kyhoods:
So I am considering buying a house in the area. The advertisement for the home was on Ramstein Yard Sales from a realtor so obviously I found the home through her advertisement. However the advertisement does not state that their is a real estate finders fee. I often see this on most advertisements, it will state 3.5% fee etc.

I would like to negotiate any fees into the purchase price of the home or split with the seller if possible. I have not made an offer yet. Should I go ahead and ask the realtor up front about the fee prior to the offer or just wait until I make the offer and see what comes up about fees? Any advise from anyone who has been down this road would be helpful.


If you like the house and want it you can then start the negotiation process with the agent (and the seller). You can also ask the fee be rolled up into the price of the house. When I bought my house I basically told the agent that I was willing to pay a flat rate for his fee as that was my budget. He jumped on it as he did not want his fee to be the show stopper and ended up getting a fee from the seller as well which I did not know.

5 years, 9 months ago

Quote by Bergman:
If you like the house and want it you can then start the negotiation process with the agent (and the seller). You can also ask the fee be rolled up into the price of the house. When I bought my house I basically told the agent that I was willing to pay a flat rate for his fee as that was my budget. He jumped on it as he did not want his fee to be the show stopper and ended up getting a fee from the seller as well which I did not know.


Thanks Bergman. I like the flat rate idea. I have been working with a mortgage banker in the area and have been told that the closing costs would be the minimum up front money I would need which equals 7%-10.5% of the purchase price. 5% for taxes, 2% for notary and title registration fees, plus 3-3.5% if their are any realtor fees (that's the part I'll need to negotiate.) In your experience did you have any other up front costs?

On a side note the interest rates sound unbelievable right now, I was told it would be 1-2% locked in for 10 years.

5 years, 9 months ago

Not to mention, the Euro rate is the best it has been since 1999. You should be able to afford a substantially higher down payment toward the house because of the Euro exchange rate.

5 years, 9 months ago

Quote by JOFTAA:
Not to mention, the Euro rate is the best it has been since 1999. You should be able to afford a substantially higher down payment toward the house because of the Euro exchange rate.


I know, it's crazy. A little scary though since my LQA will be locked in at the low exchange rate. If it creeps back up over the years, as I imagine it will, it will be painful on my pocket book to make up the difference for the mortgage payment.

5 years, 9 months ago

Quote by kyhoods:
Thanks Bergman. I like the flat rate idea. I have been working with a mortgage banker in the area and have been told that the closing costs would be the minimum up front money I would need which equals 7%-10.5% of the purchase price. 5% for taxes, 2% for notary and title registration fees, plus 3-3.5% if their are any realtor fees (that's the part I'll need to negotiate.) In your experience did you have any other up front costs?

On a side note the interest rates sound unbelievable right now, I was told it would be 1-2% locked in for 10 years.


Yeah - it's around 7% total. Plus real estate agents and loan fees depending on where you go.

Be aware that locked in for 10 years means just that. Germany still does early payoff penalty and there are intrest only loans where you don't pay off any of the original loan. You owe exactly what you owed from the start. You are expected to save money to pay on the principle later. Some banks might even make you get a life insurance policy to cover an interest only loan.

5 years, 9 months ago

Thanks, I was looking at a 13 year loan to totally pay off the home, locking in the current rates for 10 years, then refinancing. Not sure if I can lock the current rate in for 13 years, I'm working on that now.

5 years, 9 months ago

Quote by kyhoods:
Thanks, I was looking at a 13 year loan to totally pay off the home, locking in the current rates for 10 years, then refinancing. Not sure if I can lock the current rate in for 13 years, I'm working on that now.


Are you working with Robert?

5 years, 9 months ago

Quote by JOFTAA:
Are you working with Robert?


No, going on my own right now. Why do you ask?

5 years, 9 months ago

Quote by kyhoods:
No, going on my own right now. Why do you ask?


Because Robert helps a lot of people and does a very good job. He could probably save you a lot of time and effort. Worth the call, and won't cost you anything.

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