Broker comparison: What exactly makes a good broker? Estate agents are often indispensable for the sale or rental of real estate. Their job is to broker contracts for apartments, houses and commercial real estate in order to conclude a rental or purchase agreement. If a contract is concluded, the broker receives a commission. The amount depends on the rental or purchase price of the property. To help you make the right choice when looking for a broker, here are 7 tips on what makes a good broker.
Tip 1: Pay attention to conditions when comparing brokers
When looking for a broker, the conditions are particularly important. This includes the commission (see tip 2), but also the type of cooperation. We recommend having the property managed by only one estate agent, as properties managed by several agents are usually less attractive and often cause confusion among prospective buyers.
Good brokers have a lot of experience, the right training and work on a success basis. This means that a commission is only payable if the estate agent successfully places your property. This way, you as the client play it safe and also have the advantage that the estate agent will be committed to your interests. Brokers who are paid in advance, on the other hand, are less reputable and do not always lead to a successful conclusion of the contract. The collaboration should therefore be risk-free!
Tip 2: Define commission
One of the most important questions is the amount of the broker’s commission. In Switzerland, this normally amounts to up to 3% of the sales price when selling or up to two months’ gross rent when renting. For very expensive properties, lower rates can also be applied by agreeing a flat rate. It is also possible to negotiate the broker’s commission individually. However, always make sure to put this in writing to avoid falling into a trap.
Important: In Switzerland, it is often the case that estate agents want to cover their commission via the sales price. However, this tends to be an empty promise. You should treat commission and real estate price separately. This will ensure that the estate agent sets a fair price for the property. Unfortunately, it is often the norm that an expense allowance is payable in the event of unsuccessful transactions. This should be set out in writing in the brokerage agreement with the broker so that there are no surprises (we generally recommend that you pay nothing in advance, but also nothing in the event of unsuccessful transactions).
A little tip: Don’t let yourself be fooled during the initial meeting on site or on the phone into believing that the commission can “definitely” be covered by the sales price. In 90% of sales, the owners’ property prices are set too high, which means that the commission cannot be covered by the sales price!
Tip 3: Inspect your real estate portfolio
Before you decide on a broker, you should take a look at their portfolio. Do you like the way he presents real estate, the photos he uses and the way he describes the properties? Some estate agents stand out positively through the use of innovative technologies such as 360° tours or high-quality images, while others use incomprehensible shortcuts and take less attractive photos. A good real estate agent can convince through his portfolio properties alone.
Important: A good estate agent’s service also includes placing the properties to be marketed on many different portals. This shows that he knows his way around the market and can deal with different portals. At this point, social media should not be underestimated and it is essential to advertise there. The property should therefore receive maximum coverage and be presented in the best possible way.
Tip 4: Check experience and networking in the region
Since the real estate market varies greatly from region to region, you should also make sure that the real estate agent is familiar with your region. You can find more information about the broker’s regional focus in his portfolio. You can also enquire personally and have details sent to you of projects that the estate agent has carried out in your town or region. Every good real estate agent should therefore have reference properties in the region.
An estate agent who is not familiar with the area will not be able to market your property well. This makes it all the more important to find a broker who is well networked and active in the region. Also pay attention to whether the broker’s network also consists of trustees, banks and private individuals.
A little tip: Read the agent’s Google reviews carefully and ask the agent if they can provide you with contact details of their reference customers.
Tip 5: Ask about training and expertise when comparing brokers
The chosen broker should have suitable qualifications in the real estate sector. Professional training and regularly attended further training courses and workshops are important indicators of his specialist knowledge and qualifications. Good brokers are also members of a professional association. This membership indicates a basic qualification and also guarantees that the broker is guided by a code of honor.
It is important for brokerage firms to qualify and train their staff. At properti, for example, we rely on the properti Academy and the continuous training of our brokers. Owner-managed companies are to be preferred, as they indicate a greater identification of the employees with the company and a high standard of quality. Find out about the company’s reputation and ask which broker would look after you and your project.
Tip 6: Clarify the terms of the brokerage mandate
The brokerage mandate should be clearly regulated so that you are on the safe side. Insist on a written brokerage contract that specifies whether and how the brokerage activity will be carried out. Further information such as the amount of the commission and the question of whether it is a sole or general commission should also be clarified there. In any case, make sure that you can continue to sell your property yourself at any time despite the brokerage contract.
In the broker mandate, also regulate the term of the contract, the termination options and the question of whether the broker works on a contingency basis. After all, you should only pay him if he successfully brokers the property. Transparent and written formulations are an indication of a good, professional broker.
Tip 7: Check the risks of collaboration
Ideally, cooperation with a real estate agent is risk-free for you. This means that the broker works on a success basis and communicates openly and honestly with you. He should explain the brokerage mandate in detail on his own initiative and propose a transparent contract. Also make sure that you as the owner only have to pay if the job has actually been done. Qualifications and membership of a professional association reduce the risk for you.
Watch out: Estate agents in Switzerland often work as “proof brokers”, so make sure when comparing estate agents that you only have to pay the commission if the purchase contract/tenancy agreement has actually been signed and that you can therefore reject any buyer/tenant at any time without incurring any costs.
If you wish, you can also have the brokerage contract reviewed by a lawyer. This recognizes possible pitfalls. Normally, however, the biggest risk is that the estate agent does not market the property. In this case, you do not have to pay any commission and can choose another broker thanks to the termination option.
Are you still looking for a trustworthy, good estate agent? We are here for you! Our experienced brokers are active throughout Switzerland, so you are sure to find someone who specializes in your region. Get in touch with us!
All data are without guarantee. The information on these Internet pages has been carefully researched. Nevertheless, no liability can be accepted for the accuracy of the information provided.
