The Role of the Estate AgentTasks, Fees and When an Agent Is Worth It

What an Estate Agent Actually Does

The work of a professional agent goes far beyond "unlocking the door for the viewing". At its core it covers:

For Sellers

Valuation in line with the market: An experienced agent knows the real transaction prices in the region – not just the asking prices on portals, but the purchase prices actually achieved. Setting the right price is the decisive factor for a successful sale.

Professional marketing: Preparing the exposé with professional photos, prepared floor plans, a property description and publication on the relevant portals. In addition, targeted marketing through the agent's own network.

Qualifying buyers: Not every interested party is a qualified buyer. The agent checks creditworthiness and ability to finance before a viewing takes place – this saves the seller time and protects their privacy.

Conducting negotiations: Professional price negotiation based on market data, condition and the level of demand.

Managing the process: Coordinating the gathering of documents, the energy performance certificate (Energieausweis), the notary appointment and the handover, and clarifying legal questions where necessary.

For Buyers

Property search: Access to properties that are not publicly advertised, pre-selection of suitable properties, knowledge of the regional market.

Checking the property: Assessing the condition, identifying risks, estimating renovation needs.

Support with negotiations: Accompanying the price negotiation with well-founded arguments.

Support with completion: Help with checking documents, accompanying you to the notary, preparing the handover report.

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Estate Agent Commission: Legal Rules Since 2020

Since December 2020, the statutory equal-split rule (Halbteilungsprinzip) under § 656c BGB has applied to residential property (detached houses and owner-occupied flats):

If the seller engages the agent, the commission paid by the buyer may not be higher than the seller's. In practice this means both parties each pay the same share.

If the buyer engages the agent, the same applies in reverse.

For commercial property, apartment buildings, plots of land and buyers who are not consumers, these rules do not apply – here the commission is freely negotiable.

The amount of estate agent commission is not set by law in Germany. In Bavaria, a total of 7.14% of the purchase price including VAT is customary for residential property, i.e. 3.57% each for buyer and seller. You will find worked examples under Estate agent commission in Bavaria. The specific terms are agreed in a contract before marketing begins.

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When an Agent Is Particularly Worthwhile

Inherited property: Communities of heirs, an unclear land register situation, emotional strain – a neutral intermediary can simplify the process considerably. → Inheritance and property

Lack of market experience: If you are buying or selling a property for the first time, professional support protects you from costly mistakes. → Common mistakes when buying property

Time pressure: If the sale has to be completed quickly (relocation for work, separation, financial reasons), a well-connected agent speeds up the process.

Complex properties: Listed buildings, let properties, commercial property or properties with legal peculiarities require specialised support.

Selling from a distance: If you do not live locally and want to sell a property in Upper Franconia, the agent takes care of all the tasks on the ground.

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When You May Not Need an Agent

A clearly defined sale: You know the market, have a realistic price, enough time and a specific interested buyer.

Transactions within the family: A sale within the family at an agreed price – here the notary is sufficient.

Very simple properties: Standard flats in a transparent market with high demand.

But even in these cases, targeted advice can make sense – for example for the valuation or checking the contract.

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Who Does What? Agent and Owner Compared

The guide Selling a property without an agent calculates the financial effect using a concrete example.

How an Agent Finds Buyers

Good agents do not rely only on portals. Buyers come from several sources:

1. Registered interested parties: people who have already submitted a search profile and arranged their financing – often the fastest buyers.
2. Investor network: investors, family offices and developers who buy regularly – important for apartment buildings, commercial property and plots. → Investor matching
3. Recommendations: in a region where many people know each other, a large share of clients come through recommendations.
4. Portals and website: for broad visibility when no registered buyer is a fit.
5. Local presence: shop window, signs, contacts with banks, notaries and property managers.

The Agent's Obligations

An agent is not just a salesperson; they also have legal obligations:

• Licence and further training: licence under § 34c GewO, at least 20 hours of further training in three years, supervision by the competent authority.
• Money Laundering Act (Geldwäschegesetz): agents must identify their contractual partners and report anything suspicious.
• Duty of truthfulness: information in the exposé must be correct; the agent may not conceal known defects.
• Mandatory information: energy performance certificate data in every advert, a legal notice (Impressum), cancellation policy for consumer contracts.
• Data protection: data of interested parties may only be used for the purpose for which it was collected.
• Neutrality when acting for both sides: if the agent acts for both parties, they may not favour either side.

How We Work at FrankenImmo

Our process has five phases: valuation and strategy, exposé and photography, viewings with vetted interested parties, negotiation, and finally the notary and handover. You have a dedicated contact person and receive a weekly report on enquiries, viewings and feedback. We sell many properties before they are publicly advertised. More about us under About us, and an overview of our services under Services.

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What the Commission Actually Pays For

At first glance the commission looks high. A look at an agent's costs shows what it stands for:

On top of this comes the business risk: not every mandate ends in a sale, and then the agent receives nothing. The commission on a successful sale therefore also funds the work on properties that are not sold in the end.

The Agent When You Buy: What Buyers Can Expect

Even though the agent has usually been engaged by the seller, buyers are entitled to correct information. Good agents:

1. answer questions about location, condition and documents honestly,
2. provide all important documents before the notary appointment,
3. allow a second viewing with a surveyor,
4. explain the process through to the notary and handover,
5. remain available after the purchase, for example for questions about the handover.

If you as a buyer want to commission a search, you can also engage an agent yourself. Then the buyer pays the agent, and the equal-split rule applies accordingly. More on the buying process under How a property purchase works.

The Agent in Lettings and Commercial Property

When letting flats, the "whoever orders pays" principle (Bestellerprinzip) applies. Here agents take on setting the rent, adverts, viewings, credit checks, the tenancy agreement and handover. With commercial property the tasks are more extensive – from location analysis and profitability calculations to discreet approaches to investors. More under Letting a residential property and Commercial property.

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FrankenImmo – Results-driven brokerage
Phone: 0151 58363197 | Book a consultation